Good times are calling

Hey there, it’s Jillian in Brussels. The EU keeps handing telecom companies good news. But first... Today’s must-reads: • Microsoft cut 600 [View in browser]( [Bloomberg]( Hey there, it’s Jillian in Brussels. The EU keeps handing telecom companies good news. But first... Today’s must-reads: • Microsoft [cut 600 jobs]( in HoloLens, Surface and Xbox • ValueAct [took a stake in Spotify]( • Prudence [helped Apple avoid]( mass layoffs Party at Vodafone Cable and phone companies in Europe have been complaining for years of over-regulation, revenue declines, an overcrowded market and freeloading tech companies. But suddenly, their tone is more upbeat. A drastic shift in Brussels began last year and is set to gain momentum this month, potentially creating a series of policies long coveted by telecom companies. Top European Union officials [raised the possibility]( last year of making major streaming operators like Netflix Inc. and YouTube help pay for 5G and fiber infrastructure. Telcos had been pushing for such a move for over a decade. The EU’s executive arm is expected to publish a request for feedback on the idea this month, the first step toward a formal proposal. When a draft of this [consultation was circulated]( around Brussels recently, telcos read it with glee — and tech companies with horror. The consensus was that the EU is no longer asking whether it will do something but rather, how. Last week brought another cause for celebration, at least for the bankers who work with the likes of Deutsche Telekom AG and Vodafone Group Plc. Commissioner Thierry Breton said the EU should more closely consider cross-border mergers, which could create “a true single market for telecoms” in Europe. Telcos, again, have been lobbying for consolidation for a long time. The EU’s competition chief, Margrethe Vestager, also supports the idea — as long as it doesn’t reduce competition within a single EU country. It’s not a totally new line from Vestager, but in the current climate, Vestager and Breton’s comments were greeted with even more enthusiasm from telcos. Their optimism should, however, be tempered. Telcos are coalescing around the idea that the commission should force top streaming platforms to negotiate and, if those fail at first shot, appoint a regulator to help mediate the talks. But commission officials still [don’t agree]( on which direction the proposal should go. The summer would likely be the earliest we could see a full-fledged proposal materialize. The commission’s current term is running out. The longer EU officials wait, the more likely they will have to propose something less ambitious that could actually get sign-off from skeptical lawmakers and EU countries. For companies like Netflix that prize the speedy delivery of their content, this would be one thing they’d be happy to see stall. —[Jillian Deutsch](mailto:jdeutsch24@bloomberg.net), with Thomas Seal The big story Fox turned down unsolicited offers of more than $2 billion for its Tubi streaming service as CEO Lachlan Murdoch [looks to hold onto the increasingly profitable free service](. Get fully charged Thousands of fintech jobs were cut in recent months as many companies [looked to reduce costs for the first time](. A bill to ban TikTok in the US is gaining traction amid [concerns over the company’s ability to safeguard its data]( from the Chinese government. Lithuania, the EU’s fintech hub, is imposing more fines and increasing oversight [following a massive expansion]( of the financial services industry. Ashton Kutcher’s Sound Ventures is considering raising a $200 million [fund dedicated to AI investments](. More from Bloomberg Listen: [Foundering: The John McAfee Story]( is a new six-part podcast series retracing the life, the myths and the self-destruction of a Silicon Valley icon. Subscribe for free on [Apple](, [Spotify]( or wherever you get your podcasts. Coming soon: Exclusive reporting from Bloomberg’s 100 journalists across the Golden State, every Wednesday. [Sign up for Next California](. Live event: Join us in a US city near you for Bloomberg’s Intelligent Automation briefing about transformation in a time of uncertainty. Roadshow cities include: Atlanta, Feb. 28; Chicago, April 13; New York, May 4; San Francisco, June 20; London, Sept. 20; and Toronto, Oct. 19. [Register here](. 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