Netflix and Amazon File Appeal in Italy to Not Have Their CDNs Regulated As Telcos

Netflix and Amazon have filed appeals with the Lazio Regional Administrative Court in Italy in respect to their CDNs. Last August, Italy’s Communications Regulatory Authority (Agcom) decided to extend the general authorisation requirement, under the Electronic Communications Code, on Netflix and Amazon, stating their CDNs should be regulated as telcos and pay network taxes.

As both Amazon and Netflix rightly point out, private CDN services should not be regulated like telcos, and Netflix states that “there is no legal basis to support it, and it is contrary to European and Italian law.” Agcom lacks a clear understanding of how private CDNs work; otherwise, they would know that CDNs are not electronic communications networks, and Netflix’s CDN does not carry any third-party data.

Agcom argues that CDNs are networks capable of transmitting signals and, therefore, are subject to authorization under the Electronic Communications Code. Netflix states that requiring the company to obtain a telecommunications operator’s license could result in servers being relocated elsewhere, requiring data to be delivered from further away and negatively impacting the viewing experience.

Rumors suggest that Agcom is considering adopting a regulation that takes into account the type of internet service in its decision and whether the EU, with the new Digital Networks Act, intends to move in the same direction.