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Comment by rjf72

The argument in favor of deregulation of most things has some straight forward logic behind it. Imagine that some major player did begin to act badly. This would enable a competitor to offer a distinct value. Like the GP mentioned some predictions were things like e.g. Microsoft being able to pay Comcast to effectively disable Google search/products. That may be a legal possibility without regulation but it the Huffington Post 'analysis' seems to assume there are no consequences for actions. Google Fiber was a flop in large part because they could not meaningfully distinguish themselves from the competition. Imagine local monopolies start creating meaningfully poor experiences for internet users. They would not be monopolies for long!

Some might argue that lower speeds for higher prices were creating "meaningfully poor experiences" for users, but I think there is one important distinction. Let's imagine an upstart competitor comes in and offers some perk, such as lower prices for higher speeds. And the local monopoly ends up matching these offers, as they did in the case of Google Fiber. Is this action perceived as a 'de-crippling' of their system, or as an upgrade of their system? In reality it's almost certainly the former, but in practice it's going to be perceived as the latter. That means they actually gain public props for anti-competitive behavior following what is effectively price-gouging.

By contrast if some company is actively and outright blocking a site, then de-crippling would not be seen as an 'upgrade', but instead as what it is -- 'de-crippling.' And so it's likely that the competitor would be the one gaining the public props (and subscriptions). And in reality, it's possible that our incumbent monopoly might not even be able to de-cripple themselves due to a contract with e.g. Microsoft.

parent rjf72 7 years ago

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