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Is Google Breaking Its Net Neutrality Promises?
Posted Dec 15, 2008 03:54pm EST by Sarah Lacy in Investing, Internet, Media
Late Sunday night the Twitters started to fly:
"Beware the all powerful Google"
"Google now officially evil"
"Contemplating a boycott of Google"
Some twelve hours later and Twitterers turned on the Wall Street Journal, calling its reporting "sloppy," "bogus," and a "fairy tale." Yes, sir, a big brouhaha is brewing in Silicon Valley.
It started when the Journal reported Google is quietly talking to major cable and phone companies about a deal that would create a fast lane for its own content. This flies in the face of the Valley's -- and Google's -- avowed commitment to Net neutrality, or the idea that everybody deserves an equal shot, and the best, not the richest, should win.
The Journal quoted one executive who was skittish of the idea, saying, "If we did this, Washington would be on fire."
Everyone is indeed on fire. Google was quick to deny the allegations in the story, which also suggests Microsoft has backed away from strong Net neutrality rhetoric of late.
Google head of public affairs Richard Whitt called the article "confused" and "hyperbolic," and said that Google was simply moving content like YouTube videos physically closer to end users, which would ultimately reduce Web congestion. Called "edge caching," it's a common practice by service providers and well-heeled Web companies.
That may be true. But this is still an advantage. "The reason Google can do this is because the company has the resources and the network infrastructure to pull this off," wrote Om Malik. "That alone gives the company an advantage over others." Bigger, successful companies always have advantages over the small. The question is whether this one is unfair.
Meanwhile, a key Obama advisor, Stanford's Lawrence Lessig, also slammed the Journal, when he came home to an inbox of angry emails. He doesn't dispute that he believes companies should be able to pay for faster or greater access, rather the fact that the Journal called this a "softening" of his stance. He called the article an effort to "gin up drama."
In the earliest days of his campaign, Barack Obama won over Silicon Valley with his vocal commitment to neutrality. At Google's own campus a year ago, he stirred the crowd saying, "I will take a back seat to no one in my commitment to network neutrality."
That will be tested quickly, as Web advocates push for legislation on the issue as soon as the new president takes office. Lessig says he's seen no change in Obama's views. We'll see if one Obama's top supporters, Google CEO Eric Schmidt, is still leading the charge come 2009.
16 Comments
coyotebait - Monday December 15, 2008 04:20PM EST
Is the Internet marketplace about competition and optimum productivity - or stagnation imposed by productivity-endangering blather? Is "Net Neutrality" supposed to promote the status quo and slow growth and innovation? If so, dump it.
Adam - Monday December 15, 2008 04:42PM EST
Fight for the little guy until you become one. Sounds like the many democrats that grow up poor and use government programs to get rich and become republicans.
Yahoo! Finance User - Monday December 15, 2008 05:09PM EST
I agree with the other anonymous yahoo finance user above- let's shake the tree and let all those filthy spammers fall to the ground! Who cares if a handful of corporations eventually control and track the flow of all information on the net? We already allowed it to happen with television and radio, just because the internet is newer doesn't mean it should get a free pass. As a good capitalist, I know that the market is the best way to determine what is best for a society. I'll bet that as soon as this ridiculous notion of "Net Neutrality" dies, the service providers will cut our rates to $5 a month as a reward! And I could use the money right now with this recession and all. I'd also like to give a shout-out to ruddnruddn- More productivity! More profit! No more whining about free channels of communication!
teefrtwo t - Monday December 15, 2008 05:43PM EST
Maybe all we need is one search engine and ONE world government cause it looks like that is where we are all going. :))
gregbo - Monday December 15, 2008 06:19PM EST
Heh.. Don't hold your breath waiting for the end of spam or accurate Internet user identification.
Merik - Monday December 15, 2008 08:57PM EST
"As a good capitalist, I know that the market is the best way to determine what is best for a society." THAT IS HILARIOUS! Look at the society which your ideology has created. Everything is based on money, advertising, and consumption. People are overworked, families are falling apart, and your beloved market is falling apart too. Net Neutrality is important so that the Internet does NOT become like the broadcast TV, cable TV, or radio. All content is there to hold your attention on the station between commercial breaks. We have freedom of choice, but we have to choose between corporate-funded-and-controlled NBC or ABC.
Yahoo! Finance User - Monday December 15, 2008 09:40PM EST
China style internet for all. sounds good to me.
EA - Monday December 15, 2008 10:58PM EST
Google once again is using other people's innovations. I would have hoped that TV and the phone companies would be smarter to expand their advertising themselves. Advertising firms are now in need to go to the cheapest and still get quality. TV is the way to go. Cut out Google and see your products cost control go to the public buying it at a fair price. Google isn't going to get much of a deal when it hooks up with the phone companies. They are already losing money with Cavlier. It has to get some of its own ideas soon (Google) or become another WorldCom.
Yahoo! Finance User - Tuesday December 16, 2008 12:03AM EST
"We need a 10% Federal Tax on all Advertising!!" I love the Internet as is!! I only started in 1996 as one of ATT's original users.. Remember the att.net well I had two pk and 69, yes that was in the beginning.. Let the Internet Alone.. We need a 10% Federal Tax on all Advertising!! Advertising is in direct proportion to the People as Is Gasoline (Not Diesel).. It is the only way for the people to have an Equal Opportunity...
Yahoo! Finance User - Tuesday December 16, 2008 02:09AM EST
Hey M. Perkola, I thought my sarcastic tone was obvious! "Good capitalists" would never refer to themselves in that way and my use of hyperbole throughout my comment was almost more than I could stomach. Perhaps your reaction speaks to the sad fact that many people in these business forums would agree with my blatantly inhumane statements! So to summarize: Net Neutrality=Good.
Yahoo! Finance User - Tuesday December 16, 2008 03:21AM EST
Fortunately, another form of communication will arise if Net Neutrality is allowed to decay. When Internet service providers solve the problem of how to bring the Internet to the masses as TV networks did, we will see the internet become the primary marketplace for advertising products and promoting ideas. It's not far from that now. It is during this time that a more technologically advanced form of communication will be developed. The human endeavor for true knowledge and innovation will demand it. www.ted.com
Yahoo! Finance User - Tuesday December 16, 2008 10:09AM EST
If you check www.salarylist.com you will find out how much they pay employee, and they have to make profits!
fitzkie - Tuesday December 16, 2008 01:57PM EST
I love Google. You just need to learn how to play within their rules. Did you now that you can now purchase Enlyten Strips Direct? Click to Enlyten Thanks, Brian Fitzgerald http://www.enlyten1.com
Russell - Tuesday December 16, 2008 11:11AM EST
Perhaps Google funded IPV4 Net biased bandwidth filtering will accelerate the adoption of IPV6 and raise awareness of how fragile our freedom of communication is.
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Yahoo! Finance User - Monday December 15, 2008 04:15PM EST
Who cares? Net neutrality is all about advertising and who gets to make the most money. It is a waste of the governments time, when serious issues need to be discussed and dealt with. The wild wild west atmosphere of the Internet is going to kill the net if it continues. Accurate identification of both users and domain owners needs to be implemented so that spam, scams and hackers can be stopped. Spamming now occupies 70% of all resources on the net. Net neutrality quickly becomes meaningless if you eliminate spamming and unsolicited bulk email. Don't think it matters to you? Why do you think you pay $30 to $40 for a DSL connection. Somebody has to pay for all that capacity to ship, filter and trap emails. Guess who pays? Forget net neutrality and lets work on real problems.