European Union plans to extend some telecom rules to web-based providers

The European Union is looking to extend some of the privacy rules that now apply to telecommunications companies to cover Internet-based services such as Skype and WhatsApp in a way that could restrict their use of encryption, according to reports.

Companies have complained that they as telecom operators are not allowed to keep location and traffic data, while web competitors (Microsoft, Google and Facebook) are taking advantage from this and making profit out of it.

According to early figures from the public consultation, respondents agree: 83 percent of individuals and organisations representing consumer rights said that “there was a clear added value in having specific privacy rules for the electronic communications sector to ensure the confidentiality of electronic communications” and 76 percent said the scope of the rules should be extended to OTT services.

Nathalie Vandystadt, spokesperson for the Digital Single Market at the European Commission, said in a statement that the Commission was working on an update of EU telecoms rules under its Digital Single Market strategy.

This could threaten the end-to-end encryption offered on these services because telecoms operators cannot now offer this protection as they are required to make communication data available, on request, to law enforcement and other government agencies. Some internet companies offer end-to-end encryption on their services.

Law enforcement and tech companies are increasingly coming to blows on encryption and privacy, and a shift in the law to govern those carrying the majority of communications would mark the latest effort by the authorities to win this battle.

“The commission is considering whether the scope of the current European Union rules needs to be adapted, to maintain consistently high levels of consumer protection, security of networks and servers, and to ensure that regulation does not distort competition”.

According to Reuters, the commission has not yet decided exactly what confidentiality rules will apply to Web firms.

Separately the European Commission is also reviewing its online privacy laws – this will cover how these firms deal with requests from security agencies and how they make money by using customers’ data.

The European Commission has said it does not necessarily plan to treat all communications services the same for all purposes.