Tech companies warn Web rules would be ‘extremely disruptive’

Nearly three dozen major technology manufacturers and suppliers are warning the Obama Administration against tough new regulations on broadband Internet companies.

Deciding to regulate broadband Internet service like a public utility would be “extremely disruptive” to the industry and could lead to worse service for everyone, the 33 companies wrote in a letter to Commerce Secretary Penny Pritzker. “Resources that would normally be spent on building and improving infrastructure would instead be spent complying with burdensome regulatory obligations, and uncertainty regarding future profitability would deter additional private investments,” wrote the companies. “If investment in broadband services declines, it will set off a domino effect of decreased investment and innovation…” Major firms like Cisco, IBM and Intel were among the companies that signed the letter.