European telecom operator Deutsche Telekom (DT) sued Meta✴ for more than €20 million ($22 million) as payment for previously provided services and criticized the behavior of the American company. However, according to Datacenter Dynamics, DT’s criticism did not go unanswered by Meta✴. DT emphasizes that this is not just about a separate misunderstanding between companies – the question is whether the rule of the strong will reign on the Internet and whether IT giants like Meta✴ will put themselves above the law.
The dispute between DT and Meta✴ arose due to direct peering. Meta✴ paid for connection for some time, but stopped doing so during the COVID-19 pandemic. In response to DT’s claim, the District Court of Cologne ordered Meta✴ to pay for the services provided. Meta✴ now sends traffic through the transit provider.
According to DT, it was Meta✴ that “failed negotiations” on a direct connection. The operator said that the former partner is again abusing its “suppressive negotiating position”, literally trampling on the interests of the European telecom industry and consumers. DT also accused Meta✴ of intending to evade taxes in the EU, neglecting European principles of data protection (the company refers to problems with WhatsApp and the Cambridge Analytica scandal), attempts by users to use payment methods that contradict consumer protection laws, etc.
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In fact, the companies’ dispute is about net neutrality. Telecom operators believe that the main traffic providers, which include IT giants, should directly or indirectly pay for the development of telecom infrastructure. According to DT, European operators spent €55 billion ($61.27 billion) on infrastructure in 2022, while hyperscalers spent just €1 billion ($1.11 billion). A survey by the European Commission showed that respondents were not particularly interested in the idea of requiring tech giants to pay for infrastructure. Meta✴ believes that free peer-to-peer interactions are the norm for the industry and the company has free-of-charge relationships with thousands of operators around the world.
Meta✴, in turn, accused the operator of violating “net neutrality” and creating a threat to the open Internet. According to the tech giant, DT is effectively using its influence to create a “paywall” that limits access to Internet services. The company is “surprised and disappointed” that negotiations with DT failed. Meta✴ emphasizes that the practice of Deutsche Telekom creates a dangerous global precedent. It is emphasized that telecom companies already make money by providing Internet access.
It is also noted that in 2022 Meta✴ invested more than €27 billion ($30 billion) in digital infrastructure around the world, which reduces costs for telecom operators, including DT. Meta✴ is likely to spend up to $37 billion on infrastructure this year, $2 billion more than expected. True, the funds will mainly be used for the construction and equipment of data centers. When it comes to spending in the telecom sector, hyperscalers are primarily investing in long-distance undersea and terrestrial backbones.