6 Things Americans Should Know About Net Neutrality
Net neutrality is back in the news, as Ajit Pai—the chairman of the Federal Communications Commission (FCC) and a noted net neutrality opponent—has announced that he plans to propose sweeping deregulations during a meeting in December 2017. The measures—which will fundamentally change the way consumers and businesses use and pay for internet access—are expected to pass the small committee and possibly take effect early in 2018. Here's a brief explanation of what net neutrality is, and what the debate over it is all about.
1. IT'S NOT A LAW; IT'S A PRINCIPLE
Net neutrality is a principle in the same way that "freedom of speech" is. We have laws that enforce net neutrality (as we do for freedom of speech), but it's important to understand that it is a concept rather than a specific law.
2. IT'S ABOUT REGULATING ACCESS TO THE INTERNET
Fundamentally, net neutrality is the principle that Internet Service Providers (ISPs) should not be allowed to prioritize one kind of data traffic over another. This also means they cannot block services purely for business reasons.
To give a simple example, let's say your ISP also sells cable TV service. That ISP might want to slow down your internet access to competing online TV services (or make you pay extra if you want smooth access to them). Net neutrality means that the ISP can't limit your access to online services. Specifically, it means the FCC, which regulates the ISPs, can write rules to prevent ISPs from preferring certain services—and the FCC did just that in 2015.
Proponents often talk about net neutrality as a "level playing field" for online services to compete. This leaves ISPs in a position where they are providing a commodity service—access to the internet under specific FCC regulations—and that is not always a lucrative business to be in.
3. INTERNET PROVIDERS GENERALLY OPPOSE NET NEUTRALITY
In 2014 and 2015, there was a major discussion of net neutrality that led to new FCC rules enforcing net neutrality. These rules were opposed by companies including AT&T, Comcast, Time Warner Cable, and Verizon. The whole thing came about because Verizon sued the FCC over a previous set of rules and ended up, years later, being governed by even stricter regulations.
The opposing companies see net neutrality as unnecessary and burdensome regulation that will ultimately cost consumers in the end. Further, they have sometimes promoted the idea of creating "fast lanes" for certain kinds of content as a category of innovation that is blocked by net neutrality rules.
4. TECH COMPANIES GENERALLY LOVE NET NEUTRALITY
In support of those 2015 net neutrality rules were companies like Amazon, Facebook, Google, Microsoft, Netflix, Twitter, Vimeo, and Yahoo. These companies often argue that net neutrality has always been the de facto policy that allowed them to establish their businesses—and thus in turn should allow new businesses to emerge online in the future.
On May 7, 2014, more than 100 companies sent an open letter to the FCC "to express our support for a free and open internet":
Over the past twenty years, American innovators have created countless Internet-based applications, content oﬀerings, and services that are used around the world. These innovations have created enormous value for Internet users, fueled economic growth, and made our Internet companies global leaders. The innovation we have seen to date happened in a world without discrimination. An open Internet has also been a platform for free speech and opportunity for billions of users.
5. THE FCC CHAIR ONCE QUOTED EMPEROR PALPATINE
Ajit Pai, who was one of the recipients of that open letter above and is now Chairman of the FCC, quoted Emperor Palpatine from Return of the Jedi when the 2015 rules supporting net neutrality were first codified. (At the time he was an FCC Commissioner.) Pai said, "Young fool ... Only now, at the end, do you understand." His point was that once the rules went into effect, they could have the opposite consequence of what their proponents intended.
Referring to Pai's comments Evan Greer, campaigns director at Fight for the Future, said: "What they didn't know is that when they struck down the last rules we would come back more powerful than they could possibly imagine."
6. THE TWO SIDES DISAGREE ABOUT WHAT NET NEUTRALITY'S EFFECTS ARE
The Star Wars quotes above get at a key point of the net neutrality debate: Pai believes that net neutrality stifles innovation. He was quoted in 2015 in the wake of the new net neutrality rules as saying, "permission-less innovation is a thing of the past."
Pai's statement directly contradicts the stated position of net neutrality proponents, who see net neutrality as a driver of innovation. In their open letter mentioned above, they wrote, "The Commission’s long-standing commitment and actions undertaken to protect the open Internet are a central reason why the Internet remains an engine of entrepreneurship and economic growth."
In December 2016, Pai gave a speech promising to "fire up the weed whacker" to remove FCC regulations related to net neutrality. He stated that the FCC had engaged in "regulatory overreach" in its rules governing internet access.