BRUSSELS,POLAND: Poland's telecoms regulator must scrap plans to regulate Internet traffic exchange services because doing so would be unnecessary and could deter operators from investing in infrastructure, the European Commission said.

The Polish body, Urzad Komunikacji Elektronicznej (UKE), has failed to show that competitive conditions require the sector to be regulated, the European Union executive said on Friday.

"If the market itself is able to provide for fair competition, don't disturb it with unnecessary regulations," Telecoms Commissioner Neelie Kroes said in a statement.

The Commission said no other EU country regulated Internet traffic exchange services, which are used by Internet service providers to connect their customers to the Internet.

The decision followed a two-month investigation.