Europe could follow France in proposing a law that would shut down all internet access for those caught illegally sharing files. We reported last week how French president Nicolas Sarkozy would endorse a plan that, in exchange for dropping many DRM restrictions, would create an agency to monitor all high-volume internet users’ traffic - and snip their connections if they persist in sharing after two warnings. Now that plan is cited as an example of one way to balance copyright rules with stimulating the European online media market, according to a draft version of a policy paper obtained by EurActiv.

EurActiv: ”Brussels has started a public debate by asking the sector’s stakeholders whether they are ready to consider the French way, based on enforcement, and whether they consider applying filtering measures to be an effective means of preventing online copyright infringements.” The Creative Content Online In The Single Market review, which began in 2006 and since went out to a stakeholder consultation, is investigating how best to regulate the digital content business across the continent.

• France To Disconnect Online Pirates; DRM Restrictions Might Go