The Real Reason ISPs Hate Net Neutrality Regulation

The current network neutrality fight is really a wide-ranging power struggle between internet service providers and internet activists, between Republicans and Democrats. The battle is only partly about the ends—a free internet—and much more about the means: potential heavy regulation of ISPs as monopolies. Classifying ISPs as “common carriers,” under Title II of the 1934 Communications Act, means they could be regulated like monopolies.

That could go as far as setting rates for broadband, like public utilities commissions do for electricity, according to ISPs and other critics. Tom Wheeler’s FCC promised not to go this far, by forbearing, or refraining, from utilizing most of Title II. ISPs aren’t buying it. “Even if the FCC decides to forbear from regulating [ISPs] from certain or many provisions of Title II in the near term, the fact that at any time it could implement additional rules under Title II jurisdiction creates uncertainty in the industry,” says Comcast. Verizon and Comcast now advocate Section 706 regulations almost identical to what they fought against because they are so spooked by the prospect of Title II monopoly regulation—and perhaps because they know they can beat it in a lawsuit.

In arguing against the FCC’s net neutrality regulations, ISPs, Republicans in Congress, and the FCC chairman are saying that Title II is overkill. The previous FCC majority’s goal was to set some standards for equal access to the internet. Those who oppose the decision say it went overboard by pulling out a big club used to smash 19th- and 20th-century monopolies, not to nurture and fine-tune modern tech providers. But what if those modern tech providers are, in fact, acting like monopolies from 100 years ago?