What Does the End of the Direct Peering Relationship Between Meta and Deutsche Telekom Mean for Brazil?
The recent dispute between Meta and Deutsche Telekom has resulted in the termination of their direct peering relationship. Direct peering is a standard Internet practice where two networks connect directly to exchange data traffic without incurring additional costs, ensuring efficiency and speed in data transmission.
Meta’s decision followed a ruling from a German court in a contractual dispute with Deutsche Telekom, which, according to Meta, imposed unprecedented and unacceptable fees for data traffic. The tech giant expressed both surprise and disappointment at the outcome of the negotiations, stressing that it maintains cost-free (settlement-free) peering agreements with thousands of telecom providers worldwide, including in Germany, to ensure fast, high-quality access to its applications.
With the end of direct peering, data traffic between Meta and Deutsche Telekom users will now be routed through third parties, known as “transit providers.” This shift may lead to increased latency, slower access speeds, and potentially degrade service quality for Deutsche Telekom users in Germany. Ultimately, consumers could face difficulties using Meta’s applications, with longer loading times and a diminished user experience.
It’s important to note that this conflict is taking place in Germany, where Deutsche Telekom holds significant market share and negotiating power. Although both companies operate globally, the dispute is concentrated in a market where Deutsche Telekom enjoys a privileged position.
Beyond the impact on users, this situation raises concerns as it creates barriers that could limit access to services and content, favoring those who can afford the extra costs of the commercial arrangement.
As we emphasized in our submission to Anatel’s Public Consultation No. 13/2023, practices like those adopted by Deutsche Telekom threaten net neutrality and jeopardize the principle of an open Internet. Furthermore, the demand for additional payments by content providers to transmit their data demonstrates that large telecom operators are seeking to “double-dip”: charging both end users, who already pay for Internet access, and content providers, who deliver the services they want to consume.
In fact, Brazil is currently facing an even more serious policy discussion. In its submission to Anatel’s Public Consultation No. 26/2023, Conexis proposed a much broader implementation of network fees, aiming to charge based on the volume of data passing through telecom operators’ infrastructure. This could harm Brazil’s digital ecosystem and increase market concentration in favor of large telecom companies. As we’ve already pointed out, one of the critical risks of this type of policy is that it could raise costs for consumers and degrade the user experience by prioritizing services that can afford better access.
The insistence of some telecom operators on imposing additional fees on content providers represents an attempt to distort the Internet’s business model to their own advantage at the expense of consumers and innovation. Meta’s decision to end direct peering serves as a warning about the risks of allowing large operators to impose such fees, which could affect the quality and accessibility of online services.
By disregarding the principles that uphold a free and open Internet, large telecom operators are creating an environment where only services that can afford extra fees will be accessible to users, limiting the diversity of content and applications available. This practice harms not only consumers but the digital economy as a whole.
While these initiatives may seem repetitive, the lesson for Brazil is clear: proposals for an “Internet Toll” regularly reappear in new forms. In its 2025-2026 Regulatory Agenda, Anatel plans to review user obligations and evaluate the introduction of a Network Usage Fee. A public consultation is scheduled for the first half of 2025, with a final decision expected in the second half.
The fight against the Internet Toll will remain a pressing issue in Brazil, and only a united Internet community can confront this threat and ensure that the Internet stays open, free, and neutral.