Since When Is Free Web Access a Bad Thing?

[Commentary] Internet content and service providers are poised to offer an economically and socially transformative service to millions of people in developing countries: low-cost access to the Web. That is, if regulators and self-proclaimed consumer advocates don’t stop them.

Net neutrality advocates complain that zero-rated services offer consumers an “impoverished” Internet—one where companies like Facebook designate which parts of the Web users can access. Critics further contend that zero-rating harms consumers by allowing Internet service providers to favor preferred content over new competitors. These charges are without merit. Free Basics is an open platform, and any service that meets its guidelines can participate. Zero-rating is a common business model throughout the economy—think “loss-leader.” Web services and ISPs often offer free or low-cost tiers that give new users basic access. From there users may purchase more services or data. But even when they don’t, the initial constraints are regularly relaxed or removed entirely as competitors challenge the markets created by free services. The real choice for the poorest users isn’t between Internet nirvana and Free Basics; it’s between Free Basics and no Internet at all.

[Manne is the founder and executive director of the International Center for Law & Economics]