Facebook Inc. (NASDAQ:FB) is not taking it kindly European Telco’s constant push to have American companies barred from operating in the European Union jurisdiction. During an interview with the Wall Street Journal, Facebook’s Vice President for messaging products, David Marcus, reiterated that European companies should focus their attention on creating an environment where startups thrive.
The vice president was reacting to recent criticism directed towards Facebook Inc. (NASDAQ:FB) for not investing a good chunk of returns made from operations in Europe on telecommunications infrastructure. Marcus was quick to defend Facebook, reiterating that the company had helped some of the companies generate billions in revenues out of the sale of mobile subscriptions and mobile data packages.
Marcus maintains that Telco’s arguments are baseless on the fact that people nowadays buy big data plans not to access Facebook Inc. (NASDAQ:FB) services only, but services also built by other companies. The scathing attack comes in the wake of Deutsche Telecom CEO, Timotheus Hottges, suggesting that Facebook should be regulated like other communications companies in Europe as it is engaged in the offering of a messaging service.
Mr. Hottges maintains that companies like Facebook Inc. (NASDAQ:FB) continue to enjoy an unfair advantage in Europe as it is never regulated by the same rules. European telecom companies have been feeling the effects of declining revenues as a result of a stiff competition in the space as well as the ongoing sluggish economic growth.
Telecom companies in Europe have also been affected by their unwillingness to implement enticing pricing schemes to the explosion of data traffic, compared to their counterparts in the United States. Delay in investing in faster network technology such as 4G has also continued to affect their ability to ramp in more revenue from data plans.
The Facebook Inc. (NASDAQ:FB) Executive believes it is the responsibility of the Telco companies in Europe to invest in Infrastructure that has the potential to offer great growth business opportunities instead of shifting blame to other companies.
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