Regulation could choke the net - Google chief

Google CEO Eric Schmidt's nightmare scenario for a future internet looks like this: as billions more people go online, those in power are so "freaked out" about the misuse of personal information they suffocate the web with stifling regulations.

Speaking at an event hosted by the Carnegie Endowment for International Peace, Schmidt said in his keynote that, under that "undesirable" construction, a small number of companies become gatekeepers forcing internet users to interact in "highly regimented" ways that rely on verifying their identities. "The registrar has to know who you are," he added, referring to future gatekeepers. "You can't lie."

The Google chief said he remained optimistic the internet will instead tend towards a self-governing set of people and communities. But he acknowledged "true anonymity is extremely rare... and can be very, very dangerous". In that vein, a middle-ground scenario that supplies "enough insulation so you know who you're dealing with" could also arise.

In a meandering, conversational speech which lasted about 30 minutes, Schmidt mused about challenges global leaders will continue to face as the internet's reach goes on expanding.

For instance, aside from privacy and security concerns, "we have to define where free speech begins and ends", he said. He suggested tensions might arise in a world where countries such as France and Germany have outlawed pro-Nazi speech, Brazil and others don't look kindly on racist remarks, and India makes it a crime to desecrate national icons like Mahatma Gandhi.

Nations that have traditionally restricted stories told by the news media may also have to grapple with the newfound capability of their citizens to discover, just by going online, when their governments aren't treating them well, Schmidt said.

In the end, online communities could even shake up the usual borders that define governing structures, the Google chief said.

Schmidt said: "If MySpace gets a billion people, does it get its own government? Is there some rule that if you have a billion people, you get your own country? I don't know. I'm trying to be a little provocative here."

Anne Broache writes for CNET News.com