Facebook, Spotify May Not Face Ban In European Union

Facebook and Spotify could probably enjoy unlimited exposure in Europe as members of the European Union expressed reservation about banning telecom companies from offering online services for free.

As part of efforts to reform telecoms in E.U., member states have been discussing "net neutrality" -- a principle that all traffic should be treated equally, Reuters reported on Thursday.

A proposal on net neutrality by Latvia, the current E.U. presidency holder, revealed that an explicit ban on positive price discrimination such as zero-rating was unlikely to gain the support of all members.

"Zero-rating" is where operators offer unlimited access to certain online services like Facebook, Spotify, or online TV. It is seen as good for competition and innovation as well as more choice for consumers.

Supporters of zero-rating argue that the practice has been giving low-income customers greater access to the Internet.

But some consumer groups, Internet activists, and member states are convinced that it commits a breach of net neutrality since it is making some services more attractive than others.

They claimed that this would distort competition considering that operators are free to choose which online services can be zero-rated.

"The issue of positive price discrimination could be left outside the scope of this instrument... this would allow each member state to decide whether to ban price discrimination at national level, or leave the assessment of such practices to general competition law," the document stated.

However, the politico-economic union of 28 European countries would contradict its own aim of developing a single market in the telecoms should it leave such choice to individual governments.

Countries such as the Netherlands and Norway already have bans on price discrimination, which means that telecom operators cannot offer some services outside of a customer's data allowance.

Should E.U. support calls to ban telecom companies from offering online services, the prohibition implemented in Netherlands and Norway will extend that to all 28 member states.

Member state representatives will discuss the Latvian proposal next Tuesday, where they are expected to decide whether to include a ban or not, according to Reuters.