European Commission releases proposals on copyright and telecoms as part of Digital Single Market strategy

Today the European Commission released proposed directives, regulations and initiatives on telecoms and copyright, aimed at modernising EU law in these areas. This is part of the Commission’s push to deliver on the Digital Single Market strategy.

The Proposed Directive establishing the European Electronic Communications Code will be of particular interest to consumers and telecoms providers alike. In a bid to ensure that telecoms legislation is in line with modern technology, it extends regulation beyond traditional service providers. In certain areas, the rules will also apply to those providing consumers with “number-independent interpersonal communications services”, which encompasses newer chat and calling apps such as Facebook Messenger and Skype.

In particular, Article 40 imposes an obligation on Member States to ensure that providers’ networks are secure and that they have appropriate systems in place to manage network security risks. The aim is to allow consumers to benefit from consistent and secure provision of services. This will undoubtedly have an impact on the way in which owners of chat and calling apps manage their network security.

Another interesting development lies in the area of interconnectivity and interoperability of services. Article 59 grants national authorities the power to require service providers to have interoperable services. It applies in justified circumstances; the proposed legislation outlines the need for this where users require access to emergency services or “end-to-end connectivity between end-users is endangered”. Crucially, this will also apply to chat and calling apps.

For consumers, the proposed changes will be largely beneficial. The focus on network security is reassuring and the provisions on interoperability should improve the quality of services generally. However, these changes may come at a cost. Providers of chat and calling apps could choose to charge for apps which are currently free, in an attempt to offset the costs of compliance with the new regime.

For those in the telecoms industry, this is perhaps a welcome development. Telecoms has traditionally been heavily regulated and increased competition from online communications service providers has been fierce, particularly as these services have not been subject to the same stringent regulations. The Commission’s move to legislate in this area is a step towards levelling the playing field. The questions are whether the proposals are enough to encourage telecoms companies to continue investing across Europe without inhibiting investment by over-the-top service providers that will now be subject to regulatory limitations. We will have to wait and see.