The Day Real Internet Freedom Died: Our Forbes Op-Ed on Net Neutrality Regulation

by on September 22, 2009 · 31 comments

Forbes.com has just published an editorial that Berin Szoka and I penned about yesterday’s net neutrality announcement from the FCC.

The Day Internet Freedom Died

by Adam Thierer & Berin Szoka

There was a time, not so long ago, when the term “Internet Freedom” actually meant what it implied: a cyberspace free from over-zealous legislators and bureaucrats. For a few brief, beautiful moments in the Internet’s history (from the mid-90s to the early 2000s), a majority of Netizens and cyber-policy pundits alike all rallied around the flag of “Hands Off the Net!” From censorship efforts, encryption controls, online taxes, privacy mandates and infrastructure regulations, there was a general consensus as to how much authority government should have over cyber-life and our cyber-liberties. Simply put, there was a “presumption of liberty” in all cyber-matters.

Those days are now gone; the presumption of online liberty is giving way to a presumption of regulation. A massive assault on real Internet freedom has been gathering steam for years and has finally come to a head. Ironically, victory for those who carry the banner of “Internet Freedom” would mean nothing less than the death of that freedom.

We refer to the gradual but certain movement to have the federal government impose “neutrality” regulation for all Internet actors and activities—and in particular, to yesterday’s announcement by Federal Communications Commission (FCC) Chairman Julius Genachowski that new rules will be floated shortly. “But wait,” you say, “You’re mixing things up! All that’s being talked about right now is the application of ‘simple net neutrality,’ regulations for the infrastructure layer of the net.” You might even claim regulations are not really regulation but pro-freedom principles to keep the net “free and open.”

Such thinking is terribly short-sighted. Here is the reality: Because of the steps being taken in Washington right now, real Internet Freedom—for all Internet operators and consumers, and for economic and speech rights alike—is about to start dying a death by a thousand regulatory cuts. Policymakers and activists groups are ramping up the FCC’s regulatory machine for a massive assault on cyber-liberty. This assault rests on the supposed superiority of common carriage regulation and “public interest” mandates over not just free markets and property rights, but over general individual liberties and freedom of speech in particular. Stated differently, cyber-collectivism is back in vogue—and it’s coming very soon to a computer near you!

“Net Neutrality” proponents insist, however, that only regulation can save us from nefarious corporate schemers out to quash our rights and destroy all innovation. Over the last decade, a cabal of activist-minded cyber-law professors have successfully turned the world of Internet policy upside down by persuading an entire generation of law students, policymakers, and a number of large Internet companies that “Internet Freedom” means the very opposite of what it used to mean. Borrowing tactics that would have made Orwell proud, they have convinced many in the public and the policymaking community that the old Internet Freedom is slavery, in that we are all just tools of Corporate Big Brother. Thus, they offer us a new Internet Freedom: Neutrality über alles! Their freedom, as in Orwell’s Oceania, is not a freedom from the State, but a gleaming utopia that can only be created by the State.

We see the triumph of this thinking with Chairman Genachowski’s proclamation that, “This is not about government regulation of the Internet. It’s about fair rules of the road for companies that control access to the Internet. We will do as much as we need to do, and no more, to ensure that the Internet remains an unfettered platform for competition, creativity and entrepreneurial activity.”

Yet, no matter how vociferously the proponents of FCC-enforced “neutrality” insist that it is not regulation they seek, the reality is that the steps they counsel would put the FCC in the driver’s seat for a host of Internet economic and social issues. Internet companies and technologies will come to be regulated like crusty old “common carriers” and broadcast stations that must serve some amorphous “public interest.”

But as the FCC’s long history of meddling in media and communications markets makes clear, micro-management of dynamic markets is a recipe for economic stagnation, strangled innovation, and speech controls. And the path to regulation does not end with infrastructure providers. The specter of neutrality haunts not just today’s Internet service providers but also all high-tech innovators, like Google, Apple, Facebook, Microsoft and their descendents. Although the FCC’s original mandate was mostly to deal with spectrum “interference”—something that could have been, and actually was being, dealt with using property rights—the agency quickly expanded its mission: Broadcast regulation metastasized into government control over speech, innovation, campaign advertising and a “fairness doctrine” for news coverage. Likewise, Net Neutrality mandates will give rise to neutrality mandates for other areas.

The slope is slippery and we’re already heading down it: The push for “Wireless Neutrality” is already well under way and the FCC is currently investigating Apple’s rejection of the Google Voice application for the iPhone. Thus, “Net Neutrality” leads to “Device Neutrality” and “Application Neutrality,” but the same rationale would apply equally to any circumstance in which access to a communications platform is supposedly limited to a few “gatekeepers.” Some academics have already proposed a “Federal Search Commission” to deal with accusations of “search bias.” At the end of the day, we’ll need a full-blown Federal Information Commission with a Search Bureau, a Cloud Computing Division and several other ministries to micro-manage the many flavors of neutrality regulation.

The path back toward real Internet freedom lies in restoring the presumption of liberty enshrined in the First Amendment, which is not a sword with which the government can ensure fairness, diversity or openness, but a shield against government meddling in media, communications and online markets.

  • dm

    For a glimpse of what you're after, take a look at AOL circa 1996, or Compuserve for the decade or more before: controlled walled gardens trailing behind the open internet in technology and innovation.

    Or try practicing free speech in a shopping mall.

    That network was opened at government insistence on (and funding for) open protocols). Yeah, yeah, I know, it's politically correct here to rewrite history and say that “ARPANET languished under non-commercial restrictions until 1992″, though, of course Compuserve was even more moribund at that time, and those non-commercial restrictions were were there so that private firms like Compuserve didn't have to compete against a government-subsidized network. Well, the market failed to deliver, so the Internet was opened up, and a hundred technologies bloomed.

    What you don't seem to realize is that government also creates the situation in which markets can grow and thrive. That's what's behind the net-neutrality movement. Net neutrality, device neutrality, and application neutrality are all big improvements over the alternative.

    I've got to admit that the ability to charge differential prices for different services might, indeed, prove a mechanism for encouraging a few new services. The question is whether it wouldn't stifle more services than it creates.

  • bobexample

    What total non-sense this is not a First Amendment issue, but a freedom to compete issue.

    The cable companies were provided concessions, for the public good, to provide Internet services–not to impinged the 1st amendment rights of others by blocking their content.

    The telcos were GIVEN their networks, for the public good to provide Internet services–not to impinged the 1st amendment rights of others by blocking their content.

    Freedom of speech for all not just the well connected!

  • http://identi.ca/notice/10534951 Glyn Moody (glynmoody) ‘s status on Tuesday, 22-Sep-09 21:17:45 UTC – Identi.ca
  • http://techliberation.com/author/berinszoka/ Berin Szoka

    You're absolutely right here, Bob, that government-created monopolies have limited broadband competition.

    Government “franchise” licensing has proven lucrative for state and local governments (and sometimes officials) but has blocked new wireline entrants like fiber based on another fiction of scarcity—this time in publicly owned “rights of way.” Worse, not until December 2006 did the FCC finally act to allow telecom companies to begin offering video service. The local franchising roadblock had discouraged Verizon, AT&T and others from building fiber networks that could offer high-speed broadband (instead of just DSL). Finally, through central planning of spectrum use, the FCC has retarded the development of wireless broadband offerings that could serve fixed and mobile users, from high-speed cellular networks to satellite systems to ground-based technologies like Wi-Max.

    But instead of seeking to break these chains on free enterprise, regulatory advocates blame markets for failing to provide “enough” competition—and propose more regulation as the solution.

    So if the problem is insufficient competition between broadband networks, let's start getting the government out of the way!

  • dm

    So if the problem is insufficient competition between broadband networks, let's start getting the government out of the way!

    There's a small matter of finding room on the poles for the wires. Wireless may help offset that, but then there's the problem of spectrum space, and you're back to a handful of providers, unless regulation keeps the circuits neutral and lets other ISPs rent time on them.

  • http://srynas.blogspot.com/ Steve R.

    There are good regulations and there are bad regulations. There are good companies and there are bad companies. But endlessly repetitive assertions that regulation somehow squelches all innovation is simply wrong and misleading.

    For example, when I go to the gas station a buy a gallon of gas, I will get a gallon of gas because of regulation. But that does not stop Toyota or Ford from being innovative and competitive. Lets take a look at our electric network, it works on 60Hz cycle. Because of this standard, we can buy a wide range of products that will work reliably when plugged in. Do you really think that we will get more innovation if some manufactures sell products that require 50Hz and others sell products that require 80HZ?

    Apple with its rejection of Google's Voice on the iPhone is an example of private industry taking the initiative to squelch innovation. So it appears that we don't need government regulation to really squelch innovation. Private industry, it seems, is able to it without government help. Amazing!

  • iainthomson

    What a shockingly naive piece of writing. I wonder if these two know anything about the internet and it's certainly not what I'd expect from a publication of this stature.

    Using Google as an example was particularly dense. Without net neutrality there would be no Google – competing search technologies could buy faster response times despite having worse search algorithms and innovation would have been crushed. That's why Google is so strongly behind net neutrality.

  • dm

    It's a shame that this bit is getting all the reactions, when the much better piece by Julian Sanchez just two posts down (“Net Neutrality and Architecture Avoidance”) goes unremarked.

  • http://techliberation.com/2009/09/23/apple-spotify-fcc-threat-of-high-tech-regulation-how-did-we-get-here-again/ Apple, Spotify & FCC Threat of High-Tech Regulation: How Did We Get Here Again? — Technology Liberation Front

    [...] iTunes, or music streaming market in general!  Seriously, have we gotten to the point now in our Bold New World of Neutrality Regulation that innovative high-tech companies must live in fear of constant regulatory intervention even when [...]

  • http://blog.pff.org/archives/2009/09/apple_spotify_the_threat_of_fcc_high-tech_regulati.html The Progress & Freedom Foundation Blog

    Apple, Spotify & the Threat of FCC High-Tech Regulation…

    Over at TechDirt, Mike Masnick has an interesting post asking “Why Did Apple Approve Spotify?” which builds on an AdAge column asking a similar question: “Did Apple Sacrifice ITunes With Latest Apps?” As the title of that AdAge piece suggests,……

  • http://boycottnovell.com/2009/09/23/links-23092009-big-win-for-gnulinux-in-spain-amarok-2-2-now-at-rc1/ Links 23/09/2009: Big Win for GNU/Linux in Spain, Amarok 2.2 Now at RC1 | Boycott Novell

    [...] The Day Real Internet Freedom Died: Our Forbes Op-Ed on Net Neutrality Regulation There was a time, not so long ago, when the term “Internet Freedom” actually meant what it implied: a cyberspace free from over-zealous legislators and bureaucrats. For a few brief, beautiful moments in the Internet’s history (from the mid-90s to the early 2000s), a majority of Netizens and cyber-policy pundits alike all rallied around the flag of “Hands Off the Net!” From censorship efforts, encryption controls, online taxes, privacy mandates and infrastructure regulations, there was a general consensus as to how much authority government should have over cyber-life and our cyber-liberties. Simply put, there was a “presumption of liberty” in all cyber-matters. [...]

  • http://techliberation.com/2009/09/23/jenkins-on-net-neutrality-free-press-hypocrisy-over-metering/ Jenkins on Net Neutrality & Free Press Hypocrisy over Metering — Technology Liberation Front

    [...] the ‘Net,” which borrows a term that my friend Randy May coined long ago to describe what net neutrality regulation will ultimately accomplish. What I like best about the Jenkins essay was the way he exposed Free Press for their hypocrisy [...]

  • http://www.aheram.com Jayel Aheram

    If we are ever going to get Net Neutrality, we should start by getting rid of the FCC that had been stifling the growth of networks.

  • http://techliberation.com/2009/09/24/do-americans-really-want-net-neutrality-regulation/ Do Americans Really Want “Net Neutrality” Regulation? — Technology Liberation Front

    [...] harm consumers, increase broadband prices, retard the heretofore-explosive growth of bandwidth, and dramatically increase government control over the Internet. Of course, the degree of public interest in a cause doesn’t actually tell us anything about [...]

  • http://techliberation.com/author/berinszoka/ Berin Szoka

    Steve, you are you conflating two very different kinds of “regulation.”
    1) Setting common standards and units
    2) Prohibiting certain legitimate business practices

    The former is simply a way of preventing businesses from deceiving consumers, or standardizing trade. It is “regulation” in the most literal sense: “making regular.” But it is a FAR cry from dictating to someone what they can and can't do with their property (including communications networks) subject to appropriate disclosure.

    If the complaint were simply that network owners weren't adequately disclosing to consumers that there certain traffic management techniques would be used that might result in faster or slower data transfers for them depending on the circumstances or application at issue, we could have a serious debate about just what those disclosures should be. In general, I'm all in favor of open disclosure but we certainly couldn't expect network operators to tell the 5% of their users who would consume 80% of their bandwidth how to circumvent legitimate traffic management practices intended to protect the remaining 95% of consumers.

    As Richard Bennett has pointed out, if you ban such practices in the name of neutrality, networks will be forced to abandon all-you-can-eat pricing and move to some kind of tiered offering. There again some form of disclosure would be perfectly appropriate.

    But we're talking about two very different kinds of regulation here.

  • Ryan Radia

    Government allows markets to thrive by defining property rights and enforcing voluntary arrangements. There simply is no evidence that “device” or “application” neutrality are universally superior to device or application non-neutrality from an innovation standpoint. The iPhone is a prime example of this, as we've discussed here in great detail. If non-neutral ISP business models — i.e. charging, say, Google for access to customers — made sense, we'd have seen such models emerge by now. They haven't, at least not in any systematic way. They probably won't, either, unless they serve a purpose.

  • http://techliberation.com/2009/09/26/google-voice-the-slippery-slope-of-net-neutrality-regulation/ Google Voice & the Slippery Slope of Net Neutrality Regulation — Technology Liberation Front

    [...] ever closer to FCC regulation of web-based apps!  Again, this is the point we have stressed here again and again and again and again when opposing Net neutrality mandates: If you open the door to [...]

  • http://techliberation.com/2009/09/26/net-neutrality-regulation-online-productservice-definitions-online-taxation/ Net Neutrality Regulation => Online Product/Service Definitions => Online Taxation — Technology Liberation Front

    [...] Thierer and I have warned that neutrality regulation, once imposed on broadband providers, will extend to other Internet services wherever “gatekeepers” are alleged to control access [...]

  • http://techliberation.com/2009/09/27/is-apples-iphone-the-end-of-innovation-hahn-singer-on-handset-exclusivity-fears/ Is Apple’s iPhone the End of Innovation? Hahn & Singer on Handset Exclusivity Fears — Technology Liberation Front

    [...] a week in which neutrality regulation is making a lot of news, I hope that Robert Hahn and Hal Singer’s terrific new study, [...]

  • http://blog.pff.org/archives/2009/09/is_apples_iphone_the_end_of_innovation_hahn_singer.html The Progress & Freedom Foundation Blog

    Is Apple’s iPhone the End of Innovation? Hahn & Singer on Handset Exclusivity Fears…

    In a week in which neutrality regulation is making a lot of news, I hope that Robert Hahn and Hal Singer’s terrific new study, “Why the iPhone Won’t Last Forever and What the Government Should Do to Promote its Successor”……

  • brettglass

    You write, “Without network neutrality there would be no Google.”

    This is not true. No Internet provider has any interest in blocking search engines — whether it is Google or Bing or Jeeves or any other.

    In fact, Google's intent, in lobbying for regulation of the Internet, is to prevent another Google from arising to challenge it.

  • http://www.bretswanson.com/index.php/2009/09/does-google-voice-violate-neutrality/ Bret Swanson – Maximum Entropy » Blog Archive » Does Google Voice violate neutrality?

    [...] ever closer to FCC regulation of web-based apps!  Again, this is the point we have stressed here again and again and again and again when opposing Net neutrality mandates: If you open the door to [...]

  • dm

    We've certainly seen non-neutral policies in the past — AOL and its walled garden, for example. Sure, those don't necessarily survive long, but that doesn't keep the business model from reappearing and inconveniencing customers and potential customers. For example, viewed from a safe distance (so I could be mistaken), Facebook appears to be repeating some of that walled-garden mentality.

    I can assure you that Verizon would love to pull the plug on the independent ISPs to whom it must give equal access to the last mile.

    They probably won't, either, unless they serve a purpose.

    True. However, the question is: whose purpose? The ISP's or the customer's? In the duopoly situation that most customers find themselves in — phone company or cable company — that can be an important question.

    There simply is no evidence that “device” or “application” neutrality are universally superior to device or application non-neutrality from an innovation standpoint

    It sounds as though someone needs to learn about this thing called “the Internet”, and the role that open protocols and the end-to-end principle played in its development. No evidence, indeed.

  • dm

    We've certainly seen non-neutral policies in the past — AOL and its walled garden, for example. Sure, those don't necessarily survive long, but that doesn't keep the business model from reappearing and inconveniencing customers and potential customers. For example, viewed from a safe distance (so I could be mistaken), Facebook appears to be repeating some of that walled-garden mentality.

    I can assure you that Verizon would love to pull the plug on the independent ISPs to whom it must give equal access to the last mile.

    They probably won't, either, unless they serve a purpose.

    True. However, the question is: whose purpose? The ISP's or the customer's? In the duopoly situation that most customers find themselves in — phone company or cable company — that can be an important question.

    There simply is no evidence that “device” or “application” neutrality are universally superior to device or application non-neutrality from an innovation standpoint

    It sounds as though someone needs to learn about this thing called “the Internet”, and the role that open protocols and the end-to-end principle played in its development. No evidence, indeed.

  • http://techliberation.com/2009/10/08/my-net-neutrality-debate-with-public-knowledge/ My Net Neutrality Debate with Public Knowledge — Technology Liberation Front

    [...] law for one layer of the Internet will be extended, sooner or later, to other layers. As Adam and I have warned, “the same rationale would apply equally to any circumstance in which access to a [...]

  • http://techliberation.com/2009/10/11/wireless-innovation-is-alive-well/ Wireless Innovation is Alive & Well: Two New Reports Set the Record Straight — Technology Liberation Front

    [...] smell of high-tech regulation is increasingly in the air these days and many lawmakers and activist groups now have the mobile marketplace in their [...]

  • http://techliberation.com/2009/10/27/internet-freedom-how-statists-corrupt-our-language/ “Internet Freedom”: How Statists Corrupt Our Language — Technology Liberation Front

    [...] generalities” ending in “-y” Orwell would have denounced) would be the death of real Internet Freedom, which requires a strict “Separation of Web and [...]

  • http://broadbandbreakfast.com/2009/09/commentary-rights-of-providers-shouldnt-outweigh-rights-of-users/ Commentary: Rights of Providers Shouldn’t Outweigh Rights of Users | BroadbandBreakfast.com

    [...] But sometimes hyperbole can exceed the reality of the situation. Yesterday, Adam Thierer and Berin Szoka, two senior fellows at the Progress and Freedom Foundation for whom I have the utmost respect as scholars, and confidence in as sources, published a widely circulated op-ed entitled “The Day Internet Freedom Died.” [...]

  • http://techliberation.com/2010/03/28/celebrating-5000-posts-on-the-technology-liberation-front-since-2004/ Celebrating 5,000 Posts on the Technology Liberation Front Since 2004!

    [...] Control of Internet Threatens Innovation: My FOXNews.com Op-Ed on Net Neutrality, Adam and my The Day Real Internet Freedom Died & Net Neutrality, Slippery Slopes & High-Tech Mutually Assured Destruction, and Steve [...]

  • http://techliberation.com/2010/05/23/the-rise-and-fall-of-information-empires-constant-growth-of-regulation/ “The Rise and Fall of Information Empires” & Constant Growth of Regulation

    [...] Anyway, despite its one-sidedness, the piece is fascinating, offering a well-researched summary of the growing cacophony of cries for regulatory intervention against Google, and also a suggestion of where they might lead in crafting a broader regulatory regime for online services beyond just Google.  In short, the crusade against Google and the crusade for net neutrality (in which Google has, IMHO unwisely been a major player) are together leading us down in intellectual slippery slope that, as Adam and I have suggested, will result in “High-Tech Mutually Assured Destruction” and the death of Real Internet Freedom. [...]

  • http://www.blawyer.org/2010/07/20/que-el-portero-marque-tarjeta-google-neutrality/ Que el portero marque tarjeta: Google Neutrality

    [...] El clamor del Times se enmarca dentro de un intento por crear una regulación extensiva, amplia y pulposa de la neutralidad. Limitada en un principio a las infraestructuras de telecomunicaciones (Net Neutrality y Wireless Net Neutrality) la neutralidad se cierne omnipresente para las demás capas de la Internet. Ahora nos encontramos con requerimientos de neutralidad en las búsquedas (Search Neutrality), neutralidad de los dispositivos (Device Neutrality), neutralidad de las aplicaciones (Application Neutrality) y así, se la empezará a invocar para las redes sociales, correo electrónico, mensajería instantánea, publicidad en línea, etc.  (The Day Real Internet Freedom Died: Our Forbes Op-Ed on Net Neutrality Regulation) [...]

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