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US DOJ questions net neutrality rules

By Grant Gross , IDG News Service , 09/06/2007
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The U.S. Federal Communications Commission should resist calls to impose net neutrality regulations on broadband providers because such rules could hurt the Internet, the U.S. Department of Justice said Thursday.

The DOJ, in a brief filed with the FCC, said net neutrality rules could "inefficiently skew investment, delay innovation, and diminish consumer welfare." Rules that would prohibit broadband providers from giving priority to their own Internet traffic and prohibit them from blocking or slowing competitors' traffic could also prevent providers from charging fees for priority service, the DOJ said. This could, in turn, cause fees to increase to all broadband users, the DOJ said.

"Free market competition, unfettered by unnecessary governmental regulatory restraints, is the best way to foster innovation and development of the Internet," the DOJ said.

Net neutrality rules could also discourage broadband providers from investing in new, high-speed services and keep providers from managing their networks efficiently, the DOJ said.

The DOJ's comments were in response to an FCC inquiry, launched in March, about whether there's a need for net neutrality regulations. Individuals and organizations have filed more than 27,800 comments in the net-neutrality inquiry, many of them from people who want the FCC to impose net-neutrality rules.

Some Internet-based companies and consumer groups have argued that net-neutrality rules are needed after the FCC and U.S. Supreme Court in 2005 did away with regulations that required incumbent broadband providers to share their networks with competing providers. Several telecom executives have complained that Internet companies are not adequately paying network owners for using their pipes.

Public Knowledge, a consumer-rights group and net-neutrality advocate, said the DOJ doesn't seem to recognize that most U.S. consumers have few choices for broadband providers.

"It is at odds with reality for a Justice Department that approved the largest telecommunications merger in history with a mere press release to now claim that market forces and antitrust enforcement will be able to protect the free and open Internet," Gigi Sohn, Public Knowledge's president, said by e-mail. "A more vigorous antitrust analysis would have recognized there is a market failure and would have resulted in conditions on the AT&T takeover of BellSouth that would have benefited consumers and Internet companies."

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RE: US DOJ questions net neutrality rulesBy Charles B on September 7, 2007, 11:47 amI would ask where I as a consumer was served better before the big merger, how have I as a customer suffered after the merger and what was preventing competition...

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