Wednesday, May 7, 2014

Internet Fast Lanes Opposed by Amazon, EBay, Yahoo - Bloomberg

Internet companies including Amazon.com Inc. (AMZN), Google Inc., Netflix Inc. and Microsoft Corp. (MSFT) in a letter said they oppose a U.S. regulator's call for allowing companies to pay for fast lanes on the Internet.

The companies said the rules may let phone and cable providers "discriminate both technically and financially against Internet companies" and "impose new tolls on them."

Federal Communications Commission Chairman Tom Wheeler has proposed letting service providers such as AT&T Inc. and Comcast Corp. negotiate deals with content makers for quicker and more reliable delivery of their video and other fare.

Wheeler has said the idea doesn't abandon the FCC's Internet fairness policy, commonly known as "net neutrality." His proposal is set for an initial vote at the FCC on May 15.

"This represents a grave threat to the Internet," the companies said in the letter addressed to Wheeler and the four other FCC commissioners, and distributed by e-mail.

The FCC should protect users and Internet companies against blocking of Web traffic, discrimination and paid prioritization, the companies said.

A court in January threw out FCC rules designed to ensure Web traffic is handled fairly, and the agency is seeking new rules. The vote next week will commence a comment period, and Wheeler has said he wants a final decision this year.

'Net Neutrality'

Advocacy groups including Public Knowledge and Free Press that have supported rules to prevent Internet-service providers from unfairly blocking or slowing Web traffic -- known as "net neutrality" -- said payment arrangements won't protect Internet users.

FCC Commissioner Jessica Rosenworcel, who like Wheeler is part of the agency's Democratic majority, today called for a delay of the vote "by at least a month."

"I have real concerns about FCC Chairman Wheeler's proposal on network neutrality," Rosenworcel said in a remarks in Washington today. The proposal has unleashed "a torrent" of reaction and "rushing headlong into a rulemaking next week fails to respect the public response," she said.

Companies signing the letter included Amazon, the largest Internet retailer; Netflix (NFLX), the biggest online-video subscription service; and Microsoft, the largest software maker.

Also listed as signing were EBay Inc. (EBAY), the top online marketplace; Yahoo! Inc., the largest U.S. Web portal; and the Twitter Inc. messaging service.

To contact the reporter on this story: Todd Shields in Washington at tshields3@bloomberg.net

To contact the editors responsible for this story: Romaine Bostick at rbostick@bloomberg.net; Bernard Kohn at bkohn2@bloomberg.net Elizabeth Wasserman

Source : http://www.bloomberg.com/news/2014-05-07/internet-fast-lanes-opposed-by-amazon-ebay-yahoo.html