Net Neutrality and Competition Scott Wallsten Senior Fellow Director, Communications Policy Studies Progress & Freedom Foundation

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Presentation transcript:

Net Neutrality and Competition Scott Wallsten Senior Fellow Director, Communications Policy Studies Progress & Freedom Foundation

The Internet Multi-sided market merchantsconsumers

Multi-sided market + network effects ConsumersContent The Internet

Mandatory net neutrality = price regulation

Market failure? Optimal pricing unknown. Innovation in content and infrastructure.

Anticompetitive discrimination? Not in providers’ interests. Not with adequate competition. Antitrust, not regulatory, issue.

Effects on consumers? If infrastructure charges content providers… consumer prices DECREASE! In a two-sided market, if prices increase for one side they decrease for the other.

COMPETITION

Optimal pricing unknown Content AND infrastructure important Net neutrality = price regulation Focus on competition Conclusions

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