How to end a fight over who should regulate Internet providers

Federal officials are discussing an end to the Federal Trade Commission's legal prohibition on regulating Internet providers and telecommunications companies -- a move that could give Washington wider authority to police perceived abuses and consumer harms in an increasingly important part of the economy. If the idea moves forward, it could mean that both the FTC and the Federal Communications Commission would have the power to go after misbehaving carriers. It could also mean greater cooperation between the two agencies as the lines between telecommunications, business and entertainment continue to merge on broadband networks.

Here's why the issue is so important: When the FCC in February decided to start regulating Internet providers more closely under net neutrality, it turned them into what the agency calls "common carriers." But the FTC's congressional charter carries an exemption for common carriers -- a provision that effectively prevents the FTC from taking enforcement actions against such firms and reserves that right for the FCC. But Republicans are warning that letting the FCC regulate the industry with rules on one hand and the FTC with antitrust lawsuits on the other could unnecessarily complicate things. "What the [FCC's net neutrality] order does is take conduct the antitrust law generally presumes is pro-competitive," said FTC Commissioner Joshua Wright during the hearing, "and declares them illegal and anticompetitive in all circumstances."