U.S. Justice Department Opposes "Net Neutrality"

The U.S. Justice Department on Thursday (9/6) 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.

"Consumers and the economy are benefitting from the innovative and dynamic nature of the Internet,"said Thomas O. Barnett, Assistant Attorney General in charge of the Department's Antitrust Division. "Regulators should be careful not to impose regulations that could limit consumer choice and investment in broadband facilities."

In its press release announcing the filing, the anti-trust devision said:

Despite the FCC's call for specific information on harmful broadband activities, the Department noted that comments filed in response to this Notice of Inquiry did not provide evidence that would suggest the existence of a widespread problem that needs to be addressed. In addition, there is no consensus on what "net neutrality" means or what should be prohibited in the name of "neutrality."

"Even assuming that a potential danger exists, the ambiguity of what conduct needs to be prohibited raises a real possibility that regulation would prohibit some conduct that is beneficial, while failing to stop other conduct that may be harmful," the Department stated.

"The FCC should be highly skeptical of calls to substitute special economic regulation of the Internet for free and open competition enforced by the antitrust laws," the Department said in its filing. "Marketplace restrictions proposed by some proponents of 'net neutrality' could in fact prevent, rather than promote, optimal investment and innovation in the Internet, with significant negative effects for the economy and consumers."

The opinion comes more than two months after Federal Trade Commission Chairwoman Deborah Platt Majoras cautioned policy makers against enacting Net-neutrality regulation.

Rep. Edward J. Markey (D-MA), Chairman of the House Subcommittee on Telecommunications and the Internet, issued a statement criticizing the the Justice Department position, saying:

“The Bush administration’s decision to oppose Internet Freedom flies in the face of the open nature of the Internet, which has fostered unprecedented innovation and economic growth. Network neutrality safeguards would preserve the open architecture of the Internet and prevent companies from downgrading and discriminating against competitive Internet services and applications. The Justice Department’s position is consistent with the Bush administration’s failed approach to national broadband policy. American consumers and entrepreneurs deserve better.”

It's not clear what impact, if any, the Justice Department filing will have on the FCC inquiry or the broader net neutrality debate. Politics - present and future - will play an important role. While some bloggers are suggesting that the Bush administration has effectively killed the issue, net neutrality advocates are certain to continue pressing their case within the Democratic Congress.  A victory by a Democrat in next year's Presidential election would also have a major impact.

Telecom analyst Craig Mathias of Farpoint Group told the Associated Press there is probably middle ground between opposing sides in the debate, but the issue "won't be settled for many years, if ever,"