The Heritage Foundation

News Releases

June 14, 2016

June 14, 2016 | News Releases on

Internet Rules Threaten Open Marketplace

Today’s 2-1 ruling in the D.C. circuit upholding the Federal Communications Commission’s rules regulating Internet access is a “loss not just for Internet access providers, but for consumers who have benefited from the innovation and growth encouraged by the Internet’s open marketplace,” said Heritage Foundation regulatory expert James Gattuso.  
As Judge Stephen Williams noted in his stinging dissent to today’s ruling, “the ultimate irony of the Commission’s unreasoned patchwork is that… it shunts broadband service onto the legal track suited to natural monopolies,” leading to the very result everyone says they want to avoid: “the prevalence of incurable monopoly.”
Added Gattuso: “The strength of the internet is based on a simple truth: less government intervention and regulation results in innovation and a vibrant exchange of ideas. That has been shown time and again in recent years.”  
“The rules upheld today threatens that success,” he argued. “For the FCC, this is the 1930s all over again, when telephones looked like black candlesticks and comprehensive, innovation-chilling monopoly regulation was the order of the day.
“It is now up to Congress to step up and exercise its constitutional powers to prevent this looming Internet disaster.”
For more of James’ research on this issue please see below:

About the Author

Justin Posey Communications Manager, Institute for Economic Freedom and Opportunity and Legal Studies
Media Relations