Regulators threaten startups and an open internet

[Commentary] For several years, Kansas City has been at the forefront of a movement in the Midwest. The region was an early leader of the Silicon Prairie, showing firsthand that a thriving startup ecosystem is not the exclusive purview of the coasts. But federal regulators are about to hurt the open internet and put this growth at risk. These startups’ successes are dependent on an open internet. The rise of digital technologies has eroded boundaries: Anyone can participate, start a business and reach a global audience. Thanks to the way the internet was designed, it’s one of the most open, competitive markets we’ve ever known. Consumers can reach any site they want, without interference from the big telecom and wireless companies that provide access to the internet. This is often called “net neutrality.” But many of the incumbent internet access providers have long wanted to change the way the internet works. This sort of behavior has been kept in check because of net neutrality rules enforced by the Federal Communications Commission, but new FCC Chairman Ajit Pai plans to do away with the existing legal protections. Without net neutrality, the incumbents who provide access to the internet would be able to pick winners or losers in the market. They could impede traffic from startups’ services in order to favor their own services or established competitors. They could also impose new fees on startups, inhibiting consumer choice.

[David Cohen is the founder and co-CEO of Techstars and a serial entrepreneur.]