Yesterday, the Federal Trade Commission (FCC) issued a report on broadband competition, finding that there is no need at this point for new regulations—including so called “network neutrality” regulations—on broadband networks.
On the heels of the Federal Communications Commission (FCC) closeout of its comment period regarding the issue, and following a blitz directed at Congress by those who would layer regulations onto the Internet, someone in the U.S. government has finally applied the brakes to the network-neutrality proponents’ juggernaut.
According to the report, lawmakers should hold off on regulations on the broadband industry and the Internet. “To date we are unaware of any significant market failure or demonstrated consumer harm from conduct by broadband providers,” said FTC Chairwomen Deborah Platt Majoras. “Policy makers should be wary of enacting regulation solely to prevent prospective harm to consumer welfare, particularly given indeterminate effects on such welfare of potential conduct by broadband providers.”
No one really knows what the ultimate effects on consumers or providers would be and therein lies the concern. For a dynamic economy, it is vital that industry be permitted to experiment with new business models, and deregulation is key to promoting the expansion of products and services.
The FTC report makes clear that the federal government’s antitrust enforcement functions are in place and functioning should a broadband provider engage in abusive behavior.
Clearly, those who have been pushing net neutrality regulations have been doing so for some reason other than the existence of any demonstrable threat to consumers. But the danger in passing unneeded regulations is the unintended consequences that inevitably come from regulations. In the end, it is more likely that consumers would be harmed from net neutrality regulations than from a free and dynamic broadband marketplace.
“First, do no harm” should apply to government regulators as well as to physicians. The FTC report shows that now is not the time for network-neutrality regulations.