Meta Says ‘Nonsense’ to EU Push to Fund Telecom Infrastructure

Jillian Deutsch and Thomas Seal, Bloomberg News

The Meta logo on a smartphone in the Brooklyn borough of New York, US, on Tuesday, July 26, 2022. Meta Platforms Inc. is scheduled to release earnings figures on July 27. Photographer: Gabby Jones/Bloomberg , Bloomberg

(Bloomberg) -- Meta Platforms Inc. dismissed telecom operators’ claims that streaming services need to help pay for internet network upgrades to run the metaverse, calling the idea “nonsense” in a blog post.

The company, in its first extensive public comments about the issue, wrote that the company found “no credible evidence of an investment gap in either fixed network capacity or mobile coverage.”

Meta also said its platforms drive demand for telecom companies’ services and emphasized that Meta already invests billions in internet infrastructure including undersea cables.

The European Commission, the executive arm of the European Union, is considering a method for data-heavy streaming services like YouTube and Netflix to pay telecom operators to invest in network upgrades. Telecom companies have been pushing for direct negotiations with content providers, but the idea has prompted concerns among lawmakers and tech companies.

Read more: EU Mulls How to Charge Tech Firms Like Netflix For Telecom Work