FTC chief slams net neutrality

The head of the US Federal Trade Commission (FTC) on Monday expressed sharp scepticism toward proposed laws that would levy extensive net neutrality regulations on broadband providers.

Deborah Platt Majoras, the FTC's Republican chairman, said extensive net neutrality legislation currently pending in the US Senate is unnecessary because there has been no demonstrated harm to consumers, that normal market forces would be likely to prevent any problems, and that new laws would cause more problems than they solve.

Majoras told a luncheon audience at the Progress and Freedom Foundation's annual conference in Aspen, Colorado: "I ask myself whether consumers will stand for an internet that suddenly imposes restrictions on their ability to freely explore the internet or does not provide for the choices they want."

Majoras' comments come as the Senate is considering a massive legislative proposal to rewrite telecommunications laws. In June, a Senate panel narrowly rejected an amendment that would have slapped strict regulations on broadband providers. Senator Ron Wyden, an Oregon Democrat, has said he'll try to block a floor vote on the measure unless that amendment is adopted.

Because the FTC shares enforcement authority with the Federal Communications Commission over certain types of deceptive practices by broadband providers, Majoras' remarks could nudge some senators who have been cautious supporters of net neutrality to a more laissez-faire position.

Majoras also took a swipe at Google and other internet companies that support extensive FCC regulation, saying she was surprised "at how quickly so many of our nation's successful firms have jumped in to urge the government to regulate". Business executives, she said, tend to talk a lot about the "free market" but then "turn to government to seek protection" when they're afraid of a marketplace disadvantage.

A new Internet Access Task Force at the FTC will evaluate net neutrality proposals in detail, Majoras said, and present a report with its conclusions.

Comcast, which has opposed extensive net neutrality regulations, welcomed Majoras' remarks, calling them "a major constructive contribution to the debate on network neutrality" that "properly places the burden of proof on those who believe government regulation is needed in this area".

The Public Knowledge advocacy group, which often supports additional regulation of large telecommunications companies, took issue with Majoras' comments, saying 98 per cent of broadband customers receive their service from either the telephone company or the cable company. "There are no market forces at work here, much as chairman Majoras wishes there to be," the group said in a statement.

Declan McCullagh writes for CNET News.com