Paid Prioritization: The Demonization of Market Economics

December 13, 2010

Now we know what “real net neutrality” and “openness” are, and that they are the antithesis of free market economics or competition.

As the FreePress-led letter to the FCC made clear on Friday: “Paid prioritization is the antithesis of openness. Any framework that does not prohibit such economic discrimination arrangements is not real net neutrality.

What is “paid prioritization?”

  • It is quality of service guarantees, market economics, supply and demand, market-based pricing, investment incentives, competitive differentiation, and reasonable network management.
  • Now we know “real network neutrality” and “openness” is more uneconomics from FreePress and the extreme left.

Remember FreePress’ last Uneconomics 101 lesson was that “above-cost pricing” was an “unfair business practice.”

  • Everyone outside the extreme left world of FreePress calls “above cost pricing”– profit — and it not only is not an unfair business practice, it is the legitimate and effective engine of a free market economy and investment.

If the FCC gives this notion — that “paid prioritization” should be prohibited and basically found illegal by the FCC — any serious attention or support, the FCC can be expected to get laughed out of court and Congress.

  • Not only is FreePress and the extreme left asking the FCC to ignore the Constitution, property rights, the law that makes market competition the foundation of American communications policy, the courts, the Congress… they now are also asking the FCC to ignore that the U.S. is a free market economy!
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