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

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Presentation on theme: "Net Neutrality and Competition Scott Wallsten Senior Fellow Director, Communications Policy Studies Progress & Freedom Foundation"— Presentation transcript:

1 Net Neutrality and Competition Scott Wallsten Senior Fellow Director, Communications Policy Studies Progress & Freedom Foundation swallsten@pff.org scott@wallsten.net

2 The Internet Multi-sided market merchantsconsumers

3 Multi-sided market + network effects ConsumersContent The Internet

4 Mandatory net neutrality = price regulation

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

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

7 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.

8 COMPETITION

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

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