Cole Carnahan
BUS 404-04
6 DEC 2015
Net Neutrality
The Internet was “born” on September 2, 1969 when two computers communicated with
each other for the first time at the University of California Los Angeles (U.C.L.A.); however,
modern-day individuals credit the birth of the Internet with the beginning of the World Wide Web
in March of 1989. Tim Berners-Lee invented the Internet—as we know it today—in 1989, and it
continues to grow into a revolutionary network connecting generations and cultures on a global
scale through an immense series of data streaming. In today’s world, a majority of households
stream information (movies, work-related data, video games, etc.) via the utilization of the
Internet, and the individuals that operate its networks range from preteens to geriatrics.
The vast application of the Internet continues to bring up the topic of net neutrality—the
principle that all content and usage across the Internet needs to be objective—between the
Federal Communications Commission (FCC) and politicians alike. The Internet was formed for a
number of reasons, but mainly to service the needs of its users with the intent of providing a
level playing field for businesses of all extremities. Net neutrality prohibits Internet providers
(AT&T, Verizon Wireless, Comcast, etc.) from obstructing certain information from the users and
ensures that companies like Google, Hulu, or Netflix cannot pay more for a faster network
stream. This will establish an “up for grabs” market, open the door for startups, and deter anti-
competitive behavior: price fixing, exclusive dealing, or territorial allocation.
The FCC, an independent federal agency, continues to fight for stricter net neutrality
regulations, because without them cable companies hold the power to charge online companies a
fee for a faster broadband network. However, critics of net neutrality believe federal regulators
should stray away from the Internet. For example, Senator Ted Cruz “describes [it] as a fight
between big boys on both sides” and argues his perspective for the regulators to basically turn
their backs on this anti-competitive behavior. This dilemma is fascinating because cable
companies deliberately engage in a horizontal restraint of trade as a result of limited restrictions
regarding the distribution of the Internet. In addition, cable companies might conspire
(individually or with a competitor) to increase profits through tactics such as restricting the
output of certain information to its users or price fixing.
If the companies employ these activities then it is a Per Se violation, because the cable
providers are eliminating the competition amongst each other and undermining the market of the
