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Dutch Market Regulator Bans T-Mobile's 'Free' Streaming Music Service (reuters.com) 61

The Dutch Consumer and Markets regulator ordered T-Mobile to shut down its zero-rated music streaming service because it violates the country's net neutrality rules. T-Mobile launched the Music Freedom service in October, allowing customers to stream music on their mobile devices without it impacting their data plans. Reuters reports: The AFM said the practice, often called "zero rating" is a violation of Dutch net neutrality rules, because it puts rival services such as Spotify at a competitive disadvantage. Deutsche Telekom subsidiary T-Mobile Netherlands, which had introduced the product on Oct. 10, must stop offering it or face penalty of 50,000 euros ($52,000) per day, the AFM said. Zero rating is shaping up as one of the major battlegrounds for European telecommunications companies as they seek ways to attract customers. The Dutch net neutrality law unambiguously forbids the practice, but European Union rules are less clear.
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Dutch Market Regulator Bans T-Mobile's 'Free' Streaming Music Service

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  • People who are intolerant of other people's cultures and the Dutch. some movie quote
    • by Anonymous Coward

      While we're being intolerant let's not forget those miserable fat Belgian bastards.

  • by Anonymous Coward

    Net neutrality laws: Another win for the consumer!

    • by xonen ( 774419 )

      As one of those dutch consumers - not so much. While i do totally understand and subscribe the need of net neutrality, this example already shows it is not always in the consumers best interest.

      Another dutch provider (KPN, market leader) wanted to do this a few years ago, and ran into the same legal issue. Their final solution(s): 1. increase all data with all plans and 2. sell a discounted spotify subscription that came with 'free' additional data, the latter apparently being a legal solution.

      This (net-neu

      • by AvitarX ( 172628 )

        In the US we have 4 providers (Tmo, Verizon, Sprint, ATT), many resellers, and options for cheap cross bordera (through TMO at least).

        Also, zero rated streaming is happening, but on a level playing field that any content provider can play on (though in a month or so I expect zero rating to become based around crushing other providers).

      • No it really is in your best interest. These discounts have one purpose and one purpose only, reduce competition and user lockin. Okay maybe two, but the end result is always the same monopolies and less choice and when the goal is finally realised, ... Guess who will start charging again when there is no competition.

  • because it puts rival services such as Spotify at a competitive disadvantage

    That article sucks. It makes it sound like Music Freedom is a music streaming service, but it's not. At least in the USA, there are many services which fall under the Music Freedom feature and are all zero-rated. Current list is 44 services. Spotify is one of them. I agree that letting T-Mobile decide that music is free but other data costs you isn't in the spirit of net neutrality. I'll be interested if they appeal.

    • I agree that letting T-Mobile decide

      The key reason to me why this is acceptable is that T-Mobile is NOT deciding. Any company can sign up to be part of the plan from the provider side. So it is completely open - that is why they have so many services signed on already, basically anyone that can handle streaming anything over the internet at any kind of scale would be able to sign up to provide this with T-Mobile.

      • by lxs ( 131946 )

        Any company can sign up

        So only companies get to play, and it has to be a company that is aware of the local loophole.
        Also why should customers who aren't interested in streaming music on their phones subsidise those who do?

        Which incidentally means you're indirectly subsidising the music industry.

        • So only companies get to play

          Nope read, the other responses to my post, it's not just companies.

          What's sad is you think it matters when ANYONE can forma company for around $10 in most states...

          Also how is this a "local loophole", that's not what this is at all. You have no idea what the hell is actually happening with this service.

  • It doesn't seem like it's free. It's only free to subscribers (paid subscribers) of a data plan. Bundling free stuff with paid-for stuff is generally seen as adding features rather than giving stuff away. If they shot out Spotify, then it maybe that would make sense. Yes, I do get the point that they are "charging extra" for using Spotify because that data counts towards using the data plan, but it's actually using more upstream data. A service offered by a company can be reverse proxied and carry much
    • by Anonymous Coward

      It has to do with being an internet provider, internet is not a product you control, net neutrality means you can't bundle anything with internet (even dutch tv cable boxes are an option you pay extra for, but still all way cheaper than the US and at higher speeds)

      • US providers give away cable boxes for free in some markets and charge full price in others. I think they can be rented instead of bought, too. Cable and VOIP *services* are also deeply discounted if they are bundled with an internet connection. Net neutrality generally means that you can't differentiate one type of upstream traffic from another (so you can't slow down 3rd party services and demand that they pay a fee to be as fast the ones which are already paying fees). But if something is much closer
  • by OrangeTide ( 124937 ) on Friday December 23, 2016 @09:24PM (#53546397) Homepage Journal

    It's only zero rated until all the competition is pushed out of business, then the prices go back up.

  • by hankwang ( 413283 ) on Friday December 23, 2016 @11:27PM (#53546741) Homepage
    Spotify, mentioned in the summary, is a bad example, since it is one of the many streaming services that is whitelisted. T-mobile allows any streaming provider such as spotify to sign up, without restriction or charges. According to T-mobile, this is allowed by the European law, which takes precedence over Dutch law. So, they are appealing in court and continuing their service for the time being.

    References (Dutch, you'll have to pass it through Google Translate): https://www.t-mobile.nl/datavr... [t-mobile.nl] http://newsroom.t-mobile.nl/t-... [t-mobile.nl]

    • The fact that services need to be "whitelisted" at all is a problem. Who controls the whitelist? Spotify is whitelisted? Fantastic. So you created an oligopoly locking out new players in the music streaming business.

      Unless the whitelist is independently controlled and reviewed and free to use for any player then it's a violation of net neutrality by my view.

      • Until a music-streaming provider complains about being discriminated against, I don't think the review of the whitelist is the problem. The legal issue seems to be about the question whether discrimination by type of content (music, in this case), regardless of the company that provides the content, is allowed or not.

        My feeling is that T-mobile is in a weak position here. Because if T-mobile is right, they would also be allowed to discriminate against other types of content; for example by making VoIP traff

    • this is allowed by the European law, which takes precedence over Dutch law

      Which is not true. "European Law" is not a law, it's a regulation specification a member state you implement into local law.
      Netherlands already had a net neutrality law, which is more strict than the EU regulation. There is nothing in the EU regulation which does not allow these stricter rules.

      • Clearly, IANAL, and the difference between "law" and "regulation" is fuzzy for me. But I think it happens every now and then that a local law/regulation is overturned because it conflicts with an EU regulation. Couldn't that be the case here?
        • If the EU regulation would explicitly say something is allowed, then local law cannot prohibit it (and the other way around).
          But as far as I know this is not the case with respect to zero-rating or "fast lanes".

          Without a doubt, the most interesting bit of the Dutch implementation is the explicit banning of zero rating, the practice where telecom operators do not charge end customers for data used by specific applications or internet services. In addition to that, the Minister of Economic Affairs must establ

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