The European Union Parliament faces a crucial test Wednesday in fulfilling its leaders' goal of harmonising the E.U.'s regulation of the telecommunications industry by the end of the year. E.U. nations and the Parliament have locked horns for more than a year on whether the power to decide when telecom operators are abusing their market positions rests with member state regulators or the E.U. Commission, the 15-member bloc's executive branch.
The member states have staunchly defended their turf, saying the National Regulatory Agencies, or NRAs, are in the best position to determine when a company is harming competition. But the Parliament - with the support of industry - has been pushing hard for the Commission to have executive-style powers that would boost confidence and give a needed shot in the arm to Europe's information economy.
The telecom industry has supported a more harmonised approach, arguing that it needs the regulatory certainty of one institution deciding crucial legal issues.
The battle took a decisive turn last week when E.U. telecom ministers caved in to some of the Parliament's demands. To have a final deal, the member states and the Parliament must agree on a common legislative text. Bureau Report