Meta unit must pay Deutsche Telekom $36 million over network services, German court say

BERLIN, Feb 10 (Reuters) - A German court has ruled that a Meta META.O subsidiary must pay Deutsche Telekom DTEGn.DE about 30 million euros ($35.71 million) for network services used by the U.S company's platforms, a court spokesperson said on Tuesday.

The payment covers services that Telekom says it provided over more than three years to handle internet traffic generated by Meta platforms such as Facebook and Instagram.

At issue was whether a binding contract existed during this period for the use of Telekom's "peering points," where data enters the company's network.

Telekom argued that Meta subsidiary Edge Network Services continued using its private interconnection points after the original contract expired, which it said amounted to a new, paid agreement.

Edge argued that the two firms had established a settlement-free peering agreement, meaning neither could demand payment from the other for exchanging data.

COURT DECISION GIVES MORE WEIGHT TO TELECOM FIRMS

Telecom companies say that Big Tech firms like Meta and Google GOOGL.O should help fund the expansion of high-capacity broadband networks because they generate heavy data traffic.

Big Tech counters that net neutrality rules require all users to be treated equally, meaning they shouldn't pay extra.

Tuesday's court decision gives more weight to telecom firms' argument.

Edge can file a complaint with the federal court of justice against the lower court's decision not to allow an appeal within one month after receiving the judgement, according to the court.

A Meta spokesperson said the company fundamentally disagreed with the court ruling and was reviewing its options.

"We remain committed to ensuring high-quality access to our services for all users," said the spokesperson in an email.

Edge Network and Telekom did not immediately respond to emailed requests for comment on the court decision.