CCIA Concerned EC VOD Levies Proposal Could Lead to Digital Single Market Fragmentation

The European Commission's proposal to implement cross-border levies on VOD services could lead to fragmentation of the digital single market, the Computer & Communications Industry Association said in a report. The VOD cross-border levies provision is part of the EC's larger proposal to revamp European audiovisual rules. CCIA raised concerns earlier this year about the prospect that the EC would propose VOD levies (see 1605240018). The Commission has framed the VOD rules as necessary to create a “level playing field,” but instead tilts the field against VOD services and would have other unintended consequences, CCIA said. “This proposal abandons key principles which have underpinned the success of the Digital Single Market,” said Perspective Associates Managing Director Tim Suter, one of the report's co-authors, in a news release. “A deeply flawed process has led to a deeply flawed conclusion.” The EC “is applying cross-border levies only to VOD services, while leaving broadcasters with the advantages of free spectrum, prominence, must-carry and so on,” said Communications Chambers co-founder Rob Kenny. “This isn’t level -- it’s the North Face of the Eiger.”