EU Looks to Level Regulatory Playing Field With Apps, Telecoms

BRUSSELS—The European Union's executive body is set to propose more rules for so-called over-the-top telecommunications services like Microsoft Corp.'s Skype or Facebook Inc.'s WhatsApp, in a bid to level the regulatory playing field with the bloc's big telecom operators.

The European Commission plans to require internet communications companies to meet stricter privacy and security protections and make it easy for consumers to move their information when switching to other services, according to an internal document obtained by The Wall Street Journal.

The document outlines the commission's preferred policy options for its coming package to update the bloc's telecom rules, expected in the fall.

Major carriers including Deutsche Telekom AG and Spain's Telefó nica SA have long been appealing the European Union to repeal some of the extensive regulations governing carriers, or to extend similar rules to internet-based text-message and voice-call services such as WhatsApp.

Telecom firms have complained that the onus is on them to make costly investments to update the networks, while internet companies use those networks to offer free services like WhatsApp or Alphabet Inc.'s Google Hangouts.

In the document, the EU says the new obligations for over-the-top services "may entail some additional costs," but it doesn't have concrete information on the size of the financial burden.

Along with the privacy requirements, over-the-top providers that connect with traditional telephone numbers could face administrative charges, though these would differ among the member states. In Italy, for example, the charges could add up to a total of around 0.2% of annual revenue, according to the document.

Under the new proposals, some internet communications companies could also be required to provide emergency-call services.

Traditional telecom operators, however, likely will be relieved of some administrative burdens, especially where rules overlap, such as those around compliance regarding contractual rights, according to the document.

As part of the EU telecom package, the commission also aims to better coordinate the use of radio spectrum among the bloc's member states.

In its preferred policy option for spectrum, the EU says it wants to introduce common criteria, binding to all EU member states, around the timing of awards for spectrum allocation and the duration of the licenses.

Once the commission makes its proposals, various EU institutions would then debate the draft legislation before it enters into law.

The Financial Times earlier reported the commission's plans to increase regulation for over-the-top players.

(END) Dow Jones Newswires

August 15, 2016 12:05 ET (16:05 GMT)

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