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Netflix Has No Plans to Pay For EU Network Upgrades

Netflix has thrown cold water on hopes that it would pay a "tax" to help internet service providers upgrade their networks....
Netflix Has No Plans to Pay For EU Network Upgrades
Written by Staff
  • Netflix has thrown cold water on hopes that it would pay a “tax” to help internet service providers upgrade their networks.

    Proposals in the EU have been growing to try to force some Big Tech companies to pay for various network upgrades. The companies being targeted are those that are seen as the primary drivers of network traffic, including Netflix, Microsoft, Apple, Google, Amazon, and Meta. ISPs have been clamoring for them to contribute to network upgrades and the EU Commission is considering such proposals.

    According to El País, Netflix co-CEO Greg Peters said the company has no plans to contribute to network upgrades, saying it would have an “adverse effect” on content.

    “Some of our ISP partners have proposed taxing entertainment companies to subsidize their network infrastructure… [which] would have an adverse effect, reducing investment in content – hurting the creative community, hurting the attractiveness of higher-priced broadband packages, and ultimately hurting consumers,” Peters said at the 2023 World Mobile Congress in Barcelona.

    Peters also warned the “tax” would inevitably expand to include more companies.

    “This will inevitably change over time as broadcasters shift from linear to streaming,” said Peters.

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