End of free digital services? European Union to introduce “internet tax” for tech giants.

European Union has implemented a new bill, commonly referred to as the “internet tax,” which requires tech giants to cover the costs associated with the implementation of 5G mobile connectivity across the Europe.

Users predominantly engage with products offered by major companies such as Google, Microsoft, Meta services, and Twitter, and these companies hold a significant share of whole internet traffic. Telecom ministers from 18 countries met in Luxembourg to discuss the proposed network fee on technology companies. Deutsche Telekom, Orange, Telefonica and Telecom Italia want technology companies to be part of the network cost.

Internet tax for major tech companies to help building a better 5G network

While it is positive news for companies to bear the costs associated with 5G implementation, this may result in a shift from free digital services to paid services or, worse, a decline in the quality of the free services currently offered as companies will have to allocate budget to this issue.

5G is good for everyone, but fast internet won’t work as well if the services people use start to slow down or the quality of the services is degraded. Cyprus, France, Greece, Hungary, and Italy have voiced their support for the implementation of a network fee or better call it, an internet tax on major tech companies.

On the other hand, Poland, Portugal, and Romania have abstained from taking a position, while Austria, Belgium, the Czech Republic, Denmark, Finland, Germany, Ireland, Lithuania, Malta, and the Netherlands have opposed the decision.

It appears that the majority of countries will delay the implementation of an internet tax on major tech companies, although there are still countries that agree the decision.


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