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SkypeOut is a telecoms service according to the ECJ and should be regulated as such

The VoIP telephony service could now face the same regulation as traditional voice calls.

Background: For many years, regulators have struggled in categorising VoIP telephony services to decide the rules to which they should be subject. In Europe, software-based VoIP traditionally fell within the scope of ‘Information Society’ services, thereby not being classified as electronic communications services (which required the conveyance of signals over a network). Repeated attempts of regulators to get Skype (and similar services), to comply with the requirements typical of an electronic communications provider have therefore failed.

What the ECJ decided: The European Courts of Justice decided on a case referred to it by a court in Belgium, as a result of a long-running dispute between the national regulator BIPT and Skype, with the former asking the latter to register as an electronic communications provider with regard to its SkypeOut service – this features enables Skype users to make telephone calls to fixed and mobile numbers. The ECJ ruled that SkypeOut is to be considered an electronic communications service, because Skype transmits calls to telephone numbers: it charges users for these calls, and strikes agreements with telcos to terminate them.

What happens now: The ECJ’s ruling is not the final say, although it will be taken into the utmost account by the Belgian court where the case returns. If the ruling is confirmed, Skype may have to adjust to the rules of an electronic communications provider ahead of the entry into force of the provisions of the new European Electronic Communications Code, which level the playing field between traditional and OTT communication services. These will become valid in December 2020.