Chamber Urges FCC to Keep Internet Free From Burdensome Regulation

Says Amending Current Policy Will Diminish Technology Innovation

WASHINGTON, D.C.—The U.S. Chamber of Commerce urged the Federal Communications Commission (FCC) to reject attempts to impose government control onto the Internet, in comments filed today.

"Any principles which restrict flexible pricing and packaging of Internet services will hurt small businesses and individual consumers first," said William L. Kovacs, Chamber vice president for Environment, Technology, & Regulatory Affairs. "The so-called nondiscrimination principle would harm the abilities of broadband service providers to respond quickly to market developments as well as to offer differentiated services to attract business."

The FCC has issued a Notice of Inquiry into whether to add nondiscrimination language to its policy statement on operating the internet. The U.S. Chamber opposes any attempt to place economic regulations on new technology and said the proposal would, for the first time, endorse economic regulation of the Internet. Such an action would run counter to the spirit of the Internet and innovation. When unburdened by onerous regulations, innovative technologies flourish.

This type of "nondiscrimination" language, which has been at the center of the "net neutrality" debate, represents a government intrusion into a dynamic market that will deter new investment in broadband network infrastructure, slow the deployment of innovative technologies, leave consumers with fewer choices and higher prices, and harm the ability of the United States to compete globally.

"A 'principle of nondiscrimination' is at best vague and, at worst, a false label used by those who believe the Internet should be regulated," said Kovacs. "There is no market failure; therefore, anticipatory Internet regulation is not justified."

The U.S. Chamber is the world's largest business federation, representing more than 3 million businesses and organizations of every size, sector and region.

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