Facebook’s efforts to develop an underwater data cable encircling Africa to deliver internet to the continent serve as an excellent example of why net neutrality regulations are misguided.
The political pressures on Facebook and other large tech companies is immense, so developing strategies for placating critics is understandable. But if proposed regulations weaken competition in the social media marketplace, consumers and social media will be the worse for it.
A recent study by the Federal Communications Commission’s newly-formed Office of Economics and Analytics has found that agencies with functional economics units have higher-quality regulatory impact analyses – thus justifying the creation of the OEA.
Will Facebook’s recent move to give users more information about why they see content in their Newsfeed stave off regulation? Or have the economics of politics caught up with the company?
A dedicated tech regulator along the lines proposed by Elizabeth Warren would face enormous political pressure in its rulings and threaten basic American freedoms.