CJEU interprets net neutrality in dispute between Telenor, media authority

EU

frantic00 / Shutterstock.com

Court of Justice of the European Union (CJEU) decided that agreements, by which internet service "customers subscribe to a package combining a ‘zero tariff’ and measures blocking or slowing down the traffic linked to the use of ‘non-zero tariff’ services and applications, could limit the exercise of end-users’ rights and the fundamental principle of an open internet on a significant part of the market.

According to a report by state news wire MTI, CJEU took a stand on the matter after the Budapest High Court of Justice referred it for a preliminary ruling in a dispute between Hungarian internet service provider Telenor Magyarország and the Hungarian National Media and Telecom Authority (NMHH).

Telenor disputed two NMHH decisions in which the authority decided that two Telenor internet packages did not comply with the general obligation of equal and non-discriminatory treatment of traffic as laid down in EU regulations and that Telenor had to put an end to those measures. 

In the packages in question, data traffic generated by certain specific applications and services did not count towards the consumption of the data volume purchased by customers. In addition, once that volume of data had been used up, the customers could use those specific applications and services without restrictions, while measures blocking or slowing down data traffic were applied to other available applications and services.

The CJEU held that "where measures blocking or slowing down traffic are based not on objectively different technical quality of service requirements for specific categories of traffic, but on commercial considerations, those measures must in themselves be regarded as incompatible with Article 3 of the Regulation".

"Consequently, packages such as those the subject of review ... are, generally, liable to infringe both paragraphs 2 and 3 of Article 3 of Regulation 2015/2120...", the press release concluded. 

The CJEU noted it does not decide the dispute itself and it is for the national court or tribunal to dispose of the case in accordance with the Court’s decision, which is similarly binding on other national courts or tribunals before which a similar issue is raised.

Telenor took notice of the CJEU decision with regret, the company said in a statement on Tuesday, noting that it has abided by the referred decisions of the Hungarian media authority now for almost two years. Accordingly, it does not differentiate its online music and message services from other data traffic in respect of the speed of the service. As a result, its costumers will experience no change after the current CJEU ruling, Telenor said.

Policymakers Cut Central Bank Base Rate by 50 bp to 7.75% MNB

Policymakers Cut Central Bank Base Rate by 50 bp to 7.75%

Bulgaria's Household Income, Spending Rise 20% in 2023 World

Bulgaria's Household Income, Spending Rise 20% in 2023

Spar Magyarország Revenue Climbs Close to 16% in 2023 Retail

Spar Magyarország Revenue Climbs Close to 16% in 2023

Hungary Launches HUF 15 bln Tourism Sector Support Program Tourism

Hungary Launches HUF 15 bln Tourism Sector Support Program

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.