Netflix CEO Argues Against Proposal for Big Tech Companies to Pay for Traffic
Netflix CEO, Reed Hastings, has spoken out against the European Commission’s proposal to have large internet companies pay for the traffic they create over telecoms networks. Speaking at the Mobile World Congress, Hastings argued that such a proposal would hurt not only the content providers but also consumers and the telecom companies themselves.
“Broadband customers already pay for the networks through their subscription fees,” Hastings stated. If the proposal goes ahead, “the ISPs are effectively charging twice for the same infrastructure,” he added. Moreover, he claimed that there is no evidence that consumers would benefit from reduced broadband prices or better infrastructure if the proposal were to be implemented.
Hastings further argued that a tax like this would have significant negative effects, reducing investment in content, which would hurt local creative communities, undermine the attractiveness of high-price broadband packages and ultimately harm consumers. These points had been made previously by the Dutch government, which expressed its opposition to the proposal.
