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Debunking Edge Competition Myth Predicate in FCC Title II Broadband Order – FCC Comments

SUMMARY:

In 2015, the FCC’s Title II Open Internet broadband order was predicated on a demonstrably false central competitive premise: that the Internet’s edge was competitive while the broadband Internet core was not competitive. The facts prove the opposite.

The 2015 FCC’s competition premise is myth.

While there is plenty of information in the record, and in the July 17 comments, that broadband is  competitive, until now there has been little data and research on the overall competitiveness of the Internet edge providers, save for NetCompetition’s July 17th comments that showed how concentrated the Internet edge is using the Internet Association as a proxy.

To further rebut comments that were predicated on the demonstrably false central premise that the Internet’s edge is competitive, NetCompetition submits additional Internet competition research below.

How the Internet Cartel Won the Internet and The Internet Competition Myth

Summary: The substantial evidence catalogued here provides proof of the Internet’s cartelization, extreme concentration, winner-take-all tendencies, and mythical competition. The public data shows that the tacit Internet cartel of Google, Amazon and Facebook is 7-8 times more concentrated than the top three offline companies and that the top ten Internet economy companies are >10 times more concentrated than the top ten offline economy companies.

Public data that Google, Amazon, and Facebook have acquired ~350 potential competitors and the Internet Association overall has acquired ~900 potential competitors, indicates that the apparent cartelization of Internet companies’ investment, acquisition, and innovation processes ensure no innovative “garage startup” has a plausible competitive opportunity to seriously threaten the Internet cartel’s dominance.

Public data also ironically shows that almost all the Internet Association’s members are anti-competitively threatened by one of more of the Google, Amazon, or Facebook, winner-take-all online onslaughts.

U.S. antitrust authorities have enabled a cartelized and extremely concentrated Internet by taking their eye off the purpose of antitrust law -- protecting the process of competition, by first protecting the process of innovation by dominant online platforms.

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Why Title II Net Neutrality Directly Conflicts with Consumer Privacy

At best the notions of net neutrality and consumer privacy are somewhat in tension.

At worst, they are in opposition, and harm consumer privacy as happened when the Wheeler-FCC subordinated the goal of what’s best for consumer privacy to the conflicting and overriding goal of what was best for imposing maximal, Title II net neutrality.

Net neutrality and consumer privacy are in tension because they are very different concepts, priorities, and approaches for the handling of information online.

However, the original tension between the FCC’s first concept of net neutrality and consumer privacy was very limited because the Martin-FCC’s 2005 Internet Policy Statement on net neutrality was an extension of the Powell-FCC’s “Internet Freedoms” concept of net neutrality, and both approaches were consumer-first, i.e. very clearly centered around what consumers could expect from the Internet.

What thrust them into the more opposing concepts that they are today?

It was when net neutrality flipped from being primarily a consumer-centric principle to an edge-provider centric principle defined by Google, Amazon, Facebook and Netflix; and from the enforcement of a general broadband nondiscrimination principle, to the preemptive imposition of “the strongest possible,” specific, utility rate regulation framework – i.e. Title II of the 1934 Communications Act -- on a competitive industry that had done nothing wrong to warrant it.

Congress right to save consumers from net neutrality privacy rules The Hill Op-ed

 

Please see my latest The Hill op-ed: “Congress was right to save consumers from privacy rules imposed under net neutrality.”

Consumer privacy has been the biggest loser from net neutrality proponents’ politicization of privacy.

FCC Chair Pai Shows the Mobile World Congress He’s the Un-Wheeler

New Trump FCC Chair Ajit Pai’s keynote speech on “Building the 5G Economy” at the Mobile World Congress in Barcelona today spotlighted to the communications world that the U.S. FCC is going in a very different policy direction than that of the previous FCC Chairman Tom Wheeler, who just happens to be speaking at the same event as a private citizen to a break-out session on “The Fourth Industrial Revolution.”

The fact that they are both at the largest communications event in the world delivering starkly divergent messages and visions, on the same day, provides an instructive and illuminating opportunity to juxtapose their contrasting policy approaches.

Congress Please Undo FCC’s Dysfunctional Internet Privacy Rules – The Hill Op-ed

Please don’t miss my latest The Hill op-ed, “Congress Please Undo FCC’s Dysfunctional Internet Privacy Rules,” which explains how these last minute regulations created a confusing mess for consumers.

 

FCC Should Sunset Set-Top Box Provision Because Market is Fully Competitive

House Energy and Commerce Committee Republicans formally asked FCC Chairman Agit Pai to close the docket on the set-top box proceeding because it is no longer under active consideration, and because it “remains an unnecessary regulatory threat to the content creation and distribution industries” and casts a “shadow over investment and innovation.”

This is a wise, pro-competitive, pro-property rights, and good government request from Congress to the new Pai FCC.

The FCC should efficiently utilize this decision opportunity to employ the statutory sunset provision in the law to permanently sunset and remove this unnecessary and serious regulatory threat to competition, copyrighted contractual content and its creation, investment, and innovation.

Rating the FCC’s Net Neutrality Enforcement Policy a Zero -- The Hill Op-ed

Please don’t miss my latest The Hill op-ed entitled “Rating the FCC’s Net Neutrality Enforcement Policy a Zero

  • It explains how net neutrality ceased being pro-consumer.  

 

How Did Net Neutrality Become So Unreasonable? The Hill Op-ed

Please don't miss my latest op-ed in The Hill: How Did Net Neutrality Become So Unreasonable?

 

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Q&A One Pager Debunking Net Neutrality Myths