September 11, 2007

Net Neutrality Ruling By Justice Department

Interesting development where Justice Department comes down on side against net neutrality citing need for infrastructure and innovation. It's worth noting that the Internet was overbuilt in last phase and 90% of fiber is still unused. Great exchange between McCurry and CraigsList founder. Question of the day is "Do you believe Yahoo should be allowed to outbid Google to slow down Google on people's computers?". That's apparently what they all say they will start doing.

WASHINGTON -- The Justice Department on Thursday said Internet service providers should be allowed to charge a fee for priority Web traffic.

The agency told the Federal Communications Commission, which is reviewing high-speed Internet practices, that it is opposed to "Net neutrality," the principle that all Internet sites should be equally accessible to any Web user.

Several phone and cable companies, such as AT&T Inc., Verizon Communications Inc. and Comcast Corp., have previously said they want the option to charge some users more money for loading certain content or Web sites faster than others.

Reply All: Should the 'Net be neutral? Craigslist founder Craig Newmark debates the issue with former White House spokesman Mike McCurry. (5/24/06)

The Justice Department said imposing a Net neutrality regulation could hamper development of the Internet and prevent service providers from upgrading or expanding their networks. It could also shift the "entire burden of implementing costly network expansions and improvements onto consumers," the agency said in its filing.

Such a result could diminish or delay network expansion and improvement, it added.

The agency said providing different levels of service is common, efficient and could satisfy consumers. As an example, it cited that the U.S. Postal Service charges customers different guarantees and speeds for package delivery, ranging from bulk mail to overnight delivery.

"Whether or not the same type of differentiated products and services will develop on the Internet should be determined by market forces, not regulatory intervention," the agency said in its filing.

The agency's stance comes more than two months after Federal Trade Commission Chairwoman Deborah Platt Majoras cautioned policy makers to enact Net neutrality regulation.

Such a regulation could prevent rather than promote Internet investment and innovation and have "significant negative effects for the economy and consumers," the Justice Department said in the filing.

Supporters of Internet regulation have said that phone and cable companies could discriminate against certain Web site and services.

However, the agency said it will continue to monitor and enforce any anticompetitive conduct to ensure a competitive broadband marketplace.

Posted by staff at September 11, 2007 01:20 PM