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Addressing the next wave of Internet regulation: Toward a workable principle for nondiscrimination

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  • Robert Hahn
  • Robert Litan
  • Hal Singer

Abstract

The ultimate formulation of the Federal Communications Commission's “nondiscrimination on the Internet” principle could have a significant impact on economic welfare and on innovation. In this article, we explain the economics of discrimination as it applies to the Internet, and we offer a new approach for identifying anticompetitive discrimination. Our proposal would require a complaining content provider to prove (i) the broadband service provider has discriminated in favor of some affiliated content provider that is “similarly situated” to the independent content provider; (ii) such disparate treatment is based on affiliation and not on some other consideration; (iii) the independent content provider has been unreasonably restrained in its ability to compete; and (iv) the harm it suffers as a result of the discrimination would likely redound to the harm of broadband users.

Suggested Citation

  • Robert Hahn & Robert Litan & Hal Singer, 2010. "Addressing the next wave of Internet regulation: Toward a workable principle for nondiscrimination," Regulation & Governance, John Wiley & Sons, vol. 4(3), pages 365-382, September.
    • Handle: RePEc:wly:reggov:v:4:y:2010:i:3:p:365-382
    DOI: 10.1111/j.1748-5991.2010.01086.x
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    References listed on IDEAS

    as
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    4. Daniel L. Rubinfeld & Hal J. Singer, 2001. "Vertical Foreclosure in Broadband Access?," Journal of Industrial Economics, Wiley Blackwell, vol. 49(3), pages 299-318, September.
    5. Rey, Patrick & Tirole, Jean, 2007. "A Primer on Foreclosure," Handbook of Industrial Organization, in: Mark Armstrong & Robert Porter (ed.), Handbook of Industrial Organization, edition 1, volume 3, chapter 33, pages 2145-2220, Elsevier.
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    8. Friedman, Milton, 2002. "Capitalism and Freedom," University of Chicago Press Economics Books, University of Chicago Press, number 9780226264219, Febrero.
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