State of Innovation

Patents and Innovation Economics

Net Neutrality: Requiem for the Internet

It is a sad day for innovation and freedom.  For more information on why see Does Net Neutrality Inhibit Innovation.  The FCC decided to enact a set of rules called Net Neutrality, which gives the FCC broad regulatory powers over the internet.  These rules are really an assault on property rights and a clear violation of the Fifth Amendment, which states “nor shall private property be taken for public use, without just compensation.”  Regulating the use of private property is a taking of some part of the owner’s property rights.  Property rights are a bundle of rights that define a relationship between something and the owner.  When the government takes, limits or modifies one of these rights it is a taking.

An ironic result about these rules is that the liberal left that pushed these socialist rules is unhappy with them.  They feel that the rules did not go far enough and that the regulatory process was captured by large companies.  Gee, that’s surprising.  Just look at how large Wall Street banks have used financial regulation to get rid of competition.  The large railroads did the same thing years ago.

Another ironic angle of these rules is that no consumer has come forward to complain about the way the internet works today.  A couple of very large technology companies have complained about issues of access.  They are part of the socialist groups that want to take someone else’s property without paying for it.  This is ultimately a fight between large companies that want to use the government to game the system in their favor.

A sad result of these rules is the useful idiots who believed that by supporting Net Neutrality they were supporting freedom and instead were supporting repression.  The FCC is out of control.  This is another assault by the FCC on free speech.  The FCC should be abolished.

 

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December 21, 2010 - Posted by | -Economics, -Legal, Innovation | , , , ,

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