Regulatory challenges of zero-rating

Abstract

Zero-rating is a practice of electronic communication network operators whereby they offer certain apps and services that do not count toward a consumer's monthly data allowance. Over the past few years, the legality of this practice has become one of the most disputed when it comes to the greater regulatory regime. Even though significant case law has emerged, and regulators have made meaningful efforts, there have been unexpected developments in established approaches to such regulation. Consequently, there is uncertainty as to the proper regulatory regime for this practice. Average consumers might be quick to say that zero-rating is a great benefit, but there are other important factors that must be evaluated before giving the final word about the regulation of zero-rating practices. Zero-rating practices reflect the interdisciplinary nature of the Internet and the digital economy. Therefore, it must be analyzed from various perspectives. First, zero-rating can be examined within the net neutrality debate and from the competition law perspective. However, there are also implications in other areas like consumer protection and content diversity, and even human rights. This paper attempts to highlight major controversies surrounding the zero-rating debate in order to provide a regulatory proposal that could address this practice.