T-Mobile Netherlands could face fines totaling up to EUR 500,000 if it does not halt its offer of free mobile data for music streaming. The Dutch regulator ACM has found that the offer violates the law on net neutrality. If T-Mobile does not withdraw the offer within 20 days, it will be fined EUR 50,000 per day, up to a maximum EUR 500,000.
T-Mobile has already said it plans to appeal, meaning the sanctions are suspended until the case is heard in court. An ACM spokesman told Telecompaper that the regulator and operator have agreed to skip the formal appeal notification procedure and go immediately to the court in Rotterdam for a quick decision in the case. The court confirmed it will handle the case in an accelerated procedure. However, given that the case rests on an EU regulation, the Dutch court may need to seek advice from the EU court, slowing the handling of the case.
T-Mobile launched the offer in October, just before the Dutch parliament passed a strict interpretation of the EU's net neutrality regulation, banning all zero-rating. T-Mobile has already said it will appeal the Dutch legislation, claiming its offer is in line with the net neutrality guidelines from EU watchdog Berec.
According to T-Mobile, the EU regulation should apply directly, without the need for the Dutch intermediary law. It wants the court to overturn the relevant article in the Dutch Telecommunications Law. Furthermore, the EU rules only prohibit discriminating between different types of internet traffic from a technical standpoint, but not a different commercial treatment, the operator said.
Similar to the offer at its sister company in the US, T-Mobile NL's 'Data-free Music' offer is open to any music streaming service and already covers 19 major providers such as Deezer and Tidal. The free streaming is included for customers who take a plan with 6 GB of data or more per month. T-Mobile said both suppliers and customers are enthusiastic about the offer and it will continue to offer the zero-rated data pending the court decision in the case.
The ACM claims that the EU text does not make any difference between technical and commercial limitations. Furthermore the Berec guidelines do allow for limits on zero-rating and give national regulators the freedom to add more specifications depending on the case. The guidelines are not binding either, and it is up to the national regulator and courts to take the final decision, the Dutch regulator said.
The text of the ACM decision shows that T-Mobile contacted the regulator in September, a few weeks before the commercial launch of the music offer. The ACM started an investigation directly after T-Mobile's official announcement.
