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what implications for streaming?

A long-standing debate resurfaces in France with the publication, this Sunday, October 13, of an amendment proposed by MP Jean-Philippe Tanguy. This amendment whose objective is to impose a financial contribution on content and application providers for the use of the networks of French telecom operators. This initiative comes in a context where streaming platforms dominate internet traffic, raising questions about the equitable distribution of costs linked to the maintenance of digital infrastructure.

The rise of “fair share”: a European issue

In France, as in the rest of Europe, telecom operators have been advocating for several years for the establishment of “fair share”, or equitable sharing of costs. This concept is based on the idea that content providers, in particular those of platforms like Netflix, YouTube or Amazon Prime Video, should contribute to the financing of the networks that they use massively to deliver their services to consumers. MP Jean-Philippe Tanguy therefore proposes to formalize this idea by introducing a specific tax on the use of communications infrastructure.

The amendment, inserted in the Tax Code on goods and services, would create a “contribution on the use of communication networks by internet content providers”. This is a first in France, even if the subject has been debated for several years in the European Union, where operators are trying to find a balance between the exponential growth of online traffic and the costs of maintaining networks. .

A contribution calculated based on traffic

Concretely, Jean-Philippe Tanguy’s amendment would introduce a flat-rate annual contribution, which would be paid by content providers using French networks to route their traffic to end users. This “right of passage” would be calculated on the basis of the volume of data transmitted, with an amount of 12,000 euros per gigabit/second of average annual use. However, this tax would only affect companies generating traffic above 1 Gbit/sec, thus excluding small content providers.

This system would primarily target major digital players, often nicknamed “Big Tech”, such as Netflix, Google or Amazon, responsible for the majority of internet traffic in France. According to estimates from the telecoms regulator, this contribution could reach a total of 550 million euros per yearwith specific invoices of 84 million euros for Netflix et 55 million euros for Googledepending on their respective traffic.

A debate on the fairness of infrastructure financing

The justification put forward by Jean-Philippe Tanguy is based on the fact that content providers benefit greatly from communication infrastructures, while contributing little to their maintenance. The MP explains that these digital platforms “contribute almost nothing to investments and maintenance costs while their activity is totally dependent on the existence and quality of the infrastructure”. In other words, he accuses these web giants of acting like “free riders” who benefit from a network paid for by consumers and taxpayers through their taxes and internet subscriptions.

For operators, this amendment represents an opportunity to rebalance the balance. They believe that the massive increase in traffic linked to streaming services weighs heavily on infrastructure, requiring significant investments to maintain quality of service. By forcing content providers to contribute financially, operators hope to free up additional resources to finance these infrastructures, without further increasing consumers’ bills.

A controversial measure for streaming platforms

If this amendment is seen as a victory by telecom operators, it raises concerns among content providers. The latter could pass on the additional costs to subscribers, which could lead to an increase in the prices of streaming services in France. In addition, some industry players believe that this tax could slow down innovation and reduce the diversity of online content, particularly for new entrants to the market, who do not have the same financial means as the giants of the streaming.

Finally, it remains to be seen whether this amendment will pass the legislative threshold and how it will fit into European discussions on “fair share”. The European Commission is indeed working on a similar project aimed at making large platforms contribute to the maintenance of digital infrastructures, but the discussions are complex, in particular due to the reluctance of web giants and concerns about the impact on consumers .

A turning point for digital financing?

This amendment represents an important step in the reflection around the financing of digital infrastructures in France and in Europe. As internet traffic continues to grow, fueled by the success of streaming platforms, the question of who should pay for network maintenance becomes crucial. If this proposal is adopted, it could redefine the rules of the game between telecom operators and content providers, with potentially major implications for consumers and the streaming industry. The debate has been launched, and its repercussions could be felt well beyond French borders.

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