The EU Court of Justice has ruled that some of the most popular zero-rated data tariffs violate the EU's net neutrality regulations as they discriminate in how different internet services are treated. The case was brought by German courts, evaluating Vodafone's Pass options and Deutsche Telekom's Stream On packages.
Zero-rated plans allow customers to use certain mobile apps without the traffic counting towards their standard data allowance. Essentially certain services benefit from unlimited data, without any extra charges for excess traffic. Vodafone and Telekom both offer such options for video, music and social media apps. The legality of these was challenged by the German networks regulator Bundesnetzagentur and German consumer group VZBW.
The EU court found that the zero rating meant other limitations on how customers could consume internet services. Vodafone does not allow zero-rated data for the apps when roaming in the rest of the EU or when tethering with another device, while Telekom restricts the speed of all video services for Stream On users, even those not covered by the zero rating.
Such limitations on bandwidth, tethering or roaming violate the EU's open internet regulation. As they apply only on account of the activation of the ‘zero tariff’ option, they are incompatible with EU law, the court said.
The decision confirms earlier regulatory decisions on zero-rating and net neutrality in the EU. The German regulator previously ordered Vodafone and Telekom to allow the offers to apply also for EU roaming and end speed restrictions. The EU court ruled last year already that zero-rated offers could not treat different types of traffic differently purely for commercial purposes.
