The Fallacy of Net Neutrality

by Thomas W. Hazlett

“There is little dispute that the Internet should continue as an open platform,” notes the Federal Communications Commission. Yet in a curious twist of logic, the FCC has moved to upend the rules yielding that outcome, imposing “network neutrality” regulations on broadband-access providers. The new mandates purport to prevent Internet “gatekeepers” by prohibiting networks from favoring certain applications.

In this comprehensive Broadside, Thomas W. Hazlett explains the faulty economic logic behind the FCC’s regulations. The “open Internet”—thriving without such mandates—allows consumers, investors, and entrepreneurs to choose the best platforms and products, testing rival business models. Networks are actively (and efficiently) involved in managing traffic and promoting popular applications, making the entire ecosystem more valuable. This is a spontaneous market process, not a planned structure, and the commission’s restrictions threaten to stifle innovation and economic growth.

Genres: Economics, Technology

56 pages, Paperback

First published November 1, 2011

Reviews

[Devin Attig · Rating 3 out of 5]

This book brings about a strong argument against net neutrality. It does this through realistic examples of where a net neutrality policy could be bad. This book shows how regulations of networks is not necessarily the best idea. The book focuses on the capitalistic opportunities that are available without net neutrality. That is that consumers would be able to pick their provider based on what they offered and that this selection process would prevent providers from becoming overly restrictive.

While this book is great for pointing out some of the flaws in net neutrality, it does not look at the benefits of net neutrality. Because of this, it does not create a complete representation of the issue. For example it overlooks the fact that monopolies exist inside of the broadband access providers. With flaws like this, the argument was not enough to persuade me personally. It certainly pointed out some issues that I had not thought of, but again, it was not enough to change my beliefs on the issue.

[James Granger · Rating 4 out of 5]

Hazlett would present a strong case against net neutrality if he didn't sing the Neoliberal lines about competition, let the market decide, and regulations bad. The essay does present more substance than flash which unusual for neoliberal economic writings. Sadly, I'm reading this in 2021 and the essay hasn't aged well due to the monopoly power of Big Tech.

[Daryl Thompson · Rating 4 out of 5]

A good read to understand with we need to leave the internet open and unregulated as technology grows

[Seth · Rating 3 out of 5]

Pretty dry, technical, and not overly-friendly to the lay reader, but it does an adequate job explaining academically (without the overblown rhetoric that often clouds this issue) why net neutrality is unnecessary at best and harmful at worst.