“A Digital Single Market for Europe” - BT views
1. Why we need a Digital Single Market
The need for a Digital Single Market works on many levels, incorporating both consumer and
business requirements. DSM policy should be built on principles of ‘Better Regulation’, providing
a clear evidence base before proposing any new legislation, and ensuring any new rules act as a
real spur to competitiveness and innovation. This is of particular importance to discussions on
copyright reform and access to content, where it essential to support Europe’s creative sector
and to avoid interventions that could inadvertently reduce consumer choice and investment.
2. Online access for consumers and businesses
Cross-border e-commerce rules
Consumer rights rules should reflect the need for certainty by both businesses and consumers
alike. Before proceeding to a new legislative instrument, the Commission should review the
impact of the Consumer Rights Directive and its operation in relation to other EU consumer
protection legislation. In line with ‘Better Regulation’ principles, the EC should refrain from any
new legislative instrument that introduces burdens on EU business more onerous than those
already in place. Further consideration should be given to the innovative approach represented
by the ‘Common European Sales Law’ whereby business could opt into providing services to
consumers under a 29th jurisdiction.
Unjustified geo-blocking and access to digital content
BT shares the Commission’s vision of a more effective Digital Single Market, but we would like to
warn of the unintended consequences – in terms of reduced competition, weakening the creative
industries and impeding innovative business models – through harmonisation of copyright
arrangements, up to and including a single EU copyright title. Far from undermining the Digital
Single Market, existing copyright arrangements underpin the success of Europe’s creative sector,
and BT is concerned about the potential to disrupt or undermine these creative industries that are
so vital to Europe’s economic prosperity.
The imposition of a requirement for cross-border sales, apart from being an unwarranted
intrusion into commercial freedom (particularly for SMEs), would deny rights holders the
maximum flexibility and efficiency to invest, distribute and monetize their work. Restricting the
freedom of right holders to make commercial decisions will ultimately penalise citizen consumers,
artists and rights-holders, while also putting regional/local European content creators and
distributors at a disadvantage to global distributors. However, we recognise the desire of some
consumers to access content they have paid for in their home country while travelling throughout
the EU, and are considering the possibility of solutions such as subscription-linked portability,
which would have customer benefit without undermining territoriality.
3. Creating the right conditions for digital networks and innovative services
Making telecoms rules fit for purpose
The principles underlying EU telecoms regulation and EU competition law are basically sound.
However, the challenges of consolidation, convergence and of cross-border business service
provision, require adjustments to the existing Framework to deliver a more aligned, consistent
regulatory treatment of converging markets and sectors. This should be underpinned by nondiscriminatory wholesale access, with focus on active rather than passive products.
Fibre deployment is best served by maintaining the pro-competitive and technology-neutral
principles of the EU Framework, and the current allowing price flexibility in return for strong nondiscrimination, with price stability for copper. An emphasis on local access based on active fibre
access products helps drive vibrant retail competition which in turn encourages take-up.
Excessively broad approaches to margin squeeze will contaminate unregulated markets.
Achieving the digital single market is dependent upon achieving the Commission’s goals for
near-universal fibre coverage. However, a key barrier to achieving the Commission’s goal is the
state aid rules imposing burdensome access terms on public support for fibre deployment in the
white areas of cities, not just rural ones.
Cross-border service provision should of course be a key focus of the Single Market. BT is a
significant player in this market, providing service to businesses across the EU, but regulatory
inconsistency and non-availability of key wholesale access inputs mean large business
customers are still missing out on the full productivity benefits of ICT. What is needed is effective
wholesale access to business connectivity products (leased lines and Ethernet) across all EU
markets. This is the key solution for the achievement of genuine pan-EU competition in telecoms
and the completion of the provisions necessary for the single market.
A media framework
Convergence between telecoms and media gives rise to a similar need for policy consistency.
Asymmetries between telecoms operators and dominant Pay TV providers are distorting the
market and jeopardising effective competition and consumer benefit in the market for broadband
as bundling becomes ever more important. This is because premium content is a bottleneck
asset and, as the most compelling element of the bundle, represents a high barrier to switching
among bundled products for consumers. By extending the access principles of the Electronic
Communications Framework to content bottlenecks, the EU can level the playing field across
sectors, achieve a better deal for consumers and help stimulate fibre demand.
Regulatory environment for online platforms and intermediaries
Policy-makers must balance legitimate protection of citizens, consumer and business interests,
with the need to respect the essentially open and global character of the internet and the need
for continued innovation. The Commission is right to assess the impact of online ‘OTT’ platforms,
but EU competition law should be relied on as far as possible to address any issues arising from
market power or misuse of dominance. Telecoms regulators will also have to take account of
economic bottlenecks across all converging sectors including those on non-telecoms platforms.
Combatting illegal content on the internet
IPR/Copyright policy should maintain a fair balance and protection for intermediaries, and should
differentiate between measures to address illegal content on the one hand, and copyright
violations on the other. BT supports the focus on commercial-scale IP infringement as a priority
area for further work and actively encourages further education and awareness initiatives.
August 2015
BT is one of the world’s leading communications services companies, serving the needs of customers in the UK and in more
than 170 countries worldwide.