Europe Punishes Startups Again


Last week the European Parliament issued its ruling on Net Neutrality by rejecting protective neutrality amendments, thus allowing loopholes for an Internet with two speeds. This dealt a royal flush to telco providers, an unbeatable hand that could make it impossible for startups to complete.

Immediately after the announcement, Deutsche Telekom AG CEO posted a blog supporting a win-win for everyone. The major loophole allows DT and the alike to create a toll on any company that doesn't have the liquidity to finance whatever price they decide.

In addition the doors also swung wide opened for major companies like Google, Facebook, etc to dominate in Europe. There was a reason none of these companies signed the protection for net neutrality document. European startups will have to compete on a uneven playing field (like it isn't already) against industry giants, while smaller groups might have their voices drowned out by well-financing groups. 

Proponents of the passed legislation cited 'consistent net neutrality regulation across Europe for the first time' as a major win leaving Europe in a better position today than yesterday. So much better that DT is already to offer special services to startups for just a little piece of revenue. 

Europe had the opportunity to learn from the USA and do it better. In the end, corporate interest came first. The governments of major European cities traded revenue and taxes at the expense of innovation and competition. Time will tell how it plays out, but at the end of the day the biggest loser will ultimately be the consumer.