U.S. regulators risk another quagmire. The Federal Communications Commission wants to reinstate net neutrality rules that regulate how traffic flows on the internet. As with antitrust enforcers’ often-frustrated deal crackdown, the agency is stuck in a cycle of trying to litigate future problems, today.
FCC Chair Jessica Rosenworcel plans to revive a 2015 regulation preventing internet service providers such as Verizon Communications (VZ.N) or AT&T (T.N) from throttling content from the likes of Netflix (NFLX.O) unless they pay a toll. The agency rescinded the rules in 2017 under President Donald Trump.
Any attempt to bring those rules back will entail a vicious fight with the industry, over unclear stakes. Last time around, the fear was that broadband providers would suppress competition by charging for “fast lanes” on the internet, disadvantaging upstarts. But the rules have been off the book for years, and none of this has come to pass; Netflix and others have, in the meantime, successfully upended industries.
Similarly, President Joe Biden’s deal cops have faced serious blowback over trying to predict vague possible harms instead of focusing on the present. And overly strict rules might complicate the imminent arrival of a host of new internet-connected technology, like driverless cars. Regulators are trying to use yesterday’s tools to address the hypothetical problems of tomorrow. (By Jennifer Saba)
Follow @Breakingviews on X
Capital Calls – More concise insights on global finance:
Republicans leave Ukraine, weed, crypto in limbo read more
Cazoo’s debt fix points to bumpy ride read more
Disney’s theme parks reveal shrunken treasure read more
Pearson’s pricey CEO will rile shareholders read more
UK disinflationary shock sharpens Bailey’s dilemma read more
