Internet’s biggest players duck net neutrality fight

Some of the biggest names on the internet are trying to stay out of the contentious, public fight over the future of the Obama-era net neutrality rules.

Google and other household names encouraged the Federal Communications Commission (FCC) to enact the rules in 2015.

But now with the regulations on the chopping block, those companies believe the change will have little effect on their bottom line and are trying not to get dragged in.

They could face pressure, though, from consumer groups and net neutrality advocates, who see them as crucial allies to saving the rules.

{mosads}Republican FCC Chairman Ajit Pai is moving to roll back the rules, which allowed his agency to regulate internet service providers like public utilities and forced broadband companies to treat all web traffic equally.

His plan would hand oversight over to the Federal Trade Commission and allow companies to voluntarily promise to uphold net neutrality principles.

Democrats, consumer groups and many groups representing internet companies quickly blasted his plan and are vowing to mobilize the public to save the rules.

But many Silicon Valley giants, including Amazon and Twitter, which once backed the rules, are now publicly silent.

Officials at several major tech companies said net neutrality isn’t a priority anymore. Many of the companies that were once forceful advocates of the rules no longer think they will be harmed under repeal.

Facebook, Google and Microsoft boast market valuations in the hundreds of billions, giving them new power relative to broadband providers.

Consumer groups and smaller internet companies worry that if net neutrality goes, broadband providers could offer faster internet speeds to companies that pay up and slow down those do not.

Such an environment could favor established companies with deep pockets, making it easier for Google and Facebook to reach customers over upstarts.

Facebook is already pushing for so-called zero-rating, or data-free plans, for its app. Those plans let customers access certain apps or sites without counting against their data plans. The plans are expected to multiply if net neutrality goes.

Critics worry free data plans help larger players who can cut deals with broadband providers to favor their apps and make it harder for rival content providers to break through.

Despite keeping a low profile in the fight so far, a spokesperson from Facebook did note that they have and “will continue to actively support strong net neutrality rules.” 

For many, Netflix, which now has a market cap of $67 billion, highlights the quiet shift on net neutrality among big internet companies. It was once a vocal advocate for the rules.

In 2014, Netflix vowed to mobilize its customers against broadband providers after a court struck down an earlier version of the FCC’s rules.

“Were this draconian scenario to unfold with some [internet service provider],” Netflix wrote in a shareholder letter to investors, “we would vigorously protest and encourage our members to demand the open internet they are paying their ISP to deliver.”

That same year, the company tore into an FCC net neutrality plan that would have allowed broadband providers to create fast lanes for companies willing to pay more money to guarantee faster speeds to their content.

“No rules would be better than rules legalizing discrimination on the internet,” Netflix wrote in a comment on the rules.

Today, while Netflix still officially backs net neutrality, it doesn’t think repeal will hurt its business.

“Weakening of US net neutrality laws, should that occur, is unlikely to materially affect our domestic margins or service quality because we are now popular enough with consumers to keep our relationships with ISPs stable,” Netflix wrote in a letter to shareholders earlier in the year.

Google in 2014 also spoke strongly in favor of net neutrality.

“No Internet access provider should block or degrade Internet traffic, nor should they sell ‘fast lanes’ that prioritize some Internet services over others,” the company said at the time.

This year, Google has been mostly silent on the issue publicly.

A trade group, the Internet Association, has been more active than many of its members, which include Amazon, Facebook, Twitter and Google.

The association has met privately with Pai and also publicly urged him to keep the rules.

The companies are quietly watching and cautiously trying to influence the debate, though.

Lobbying disclosure reports from the first fiscal quarter of 2017 revealed that Facebook, Twitter and Microsoft have all spent money to lobby on net neutrality. Executives from Facebook, Cisco, Oracle and Intel, among others, have also spoken with Pai on net neutrality.

One tech expert said it is still early in the fight, and many companies may be biding their time.

“[The FCC] just made the announcement,” said Doug Brake, policy analyst at the Information Technology and Innovation Foundation, a Washington, D.C., think tank.

“As a legal and policy matter it’s all pretty delicate,” he added. “To be able to choose their words carefully and navigate the PR process is not easy, so why not wait?”

But the repeal push is moving quickly.

If Pai’s proposal is approved for consideration at the FCC’s open meeting in May, the agency will begin seeking public comments on rolling back net neutrality.

Four million people filed comments in support when the FCC began the process of enacting the rules. And net neutrality’s defenders are vowing a similar all-out public blitz.

Advocacy groups publicly say they are hopeful major internet companies will eventually speak out to help save the rules.

But privately they admit fears that tech won’t step up to bat as in the past.

A senior staffer at one advocacy group said they are divided over whether to even try pressuring tech firms to help save net neutrality.

“Whether or not to pursue the companies is a question currently being hotly debated by pro net neutrality activists. The problem is that the big tech companies are fickle champions,” the staffer said.

“Sure, Google or Facebook may not have made it big without net neutrality, but now they are big.”

Some say they should target smaller web companies, those they believe would be most likely hurt if net neutrality is scrapped.

“This is not about Netflix vs. Comcast,” said the staffer.