The! Promise! of! Comparativism ! Expanding! the! Bases! of

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					                                          The!Promise!of!Comparativism:!

                         Expanding!the!Bases!of!Expertise!in!Internet!Policymaking!

                                                    Frank!Pasquale1!

                (Draft!of!Nov.!18,!2008;!please!do!not!cite!or!quote!without!permission.)!

        Academic! debates! over! internet! policy! in! the! US! are! both! maturing! and!
    diversifying.! ! The! initial! “network! neutrality”! debate! featured! broad! worries! over!
    innovation! policy! and! the! political! power! of! carriers.! ! ! Innovation! policy! has!
    increasingly! been! translated! into! the! utilitarian! language! of! infrastructure! and!
    antitrust! economics.! ! The! political! and! cultural! concerns! have! evolved! in! a! different!
    direction,! which! Jerry! Kang! helpfully! characterizes! as! “deontological.”2! ! Unlike! the!
    trade"off"based!consequentialism!of!innovation!policy,!deontological!method!focuses!
    on!articulating!particular!rules!that!ought!to!constrain!the!behavior!of!individuals!and!
    corporations.! ! While! the! economics! of! network! neutrality! caution! against! “picking!
    winners,”! the! cultural! and! political! concerns! animating! deontological! thought! here!
    demand!a!principle!of!nondiscrimination.!!!

        Both! of! these! schools! of! net! neutrality! scholarship! are! facing! new! challenges.!!
    Ideals! of! “technological! neutrality”! and! “nondiscrimination”! are! often! too! vague! to!
    guide!policy!choices.!!Given!the!multiple!“layers”!of!the!internet,!the!proper!level!of!
    abstraction! is! key—should! the! government! step! in! to! stop! carriers! from! “picking!
    winners,”! or! is! this! intervention! itself! an! effort! to! promote! the! business! interests! of!
    those! threatened! by! various! forms! of! tiered! pricing?! ! Is! a! requirement! that,! say,!
    Verizon!not!discriminate!among!messages!a!way!of!assuring!nondiscrimination!on!that!
    platform—or! is! it! a! form! of! what! Christopher! Yoo! would! call! “architectural!
    censorship,”!preventing!the!company!from!exercising!its!own!editorial!discretion!over!
    the! nature! of! its! network?! ! Answers! to! these! questions! are! less! the! result! than! the!
    presupposition!of!most!scholarship!in!the!field,!and!such!presuppositions!are!unlikely!
    to!be!altered!by!either!utilitarian!or!deontological!methods.!

        Convergence!culture!poses!another!challenge!to!network!neutrality!debates.!!The!
    layered! nature! of! the! internet3! used! to! make! it! easy! to! introduce! some! basic!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       1
         ! Loftus! Professor! of! Law,! Seton! Hall! Law! School;! Visiting! Professor! of! Law,! Yale! Law! School!
       (Spring! 2009).! ! I! wish! to! thank! Danielle! Citron! and! Brett! Frischmann! for! their! comments! on!
       parts! of! this! draft,! and! Anthony! Varona! and! the! Administrative! Law! Review! at! American!
       University! for! inviting! me! to! present! part! of! it! at! the! conference! Does! Red! Lion! Still! Roar?.!!
       This! research! was! generously! supported! by! the! Dean’s! Fellowship! of! Seton! Hall! Law! School!
       and!the!Seton!Hall!summer!research!stipend.!
       2
         !Kang,!Race.net!Neutrality,!J.!ON!TELECOMM.!&!HIGH!TECH.!L.!!(2007).!
       3
         ! Jonathan! Zittrain,! The! Future! of! the! Internet! and! How! to! Stop! It! 67! (2008)! (noting! that!
       Internet!scholars!have!traditionally!thought!of!the!network!as!divided!into!a!physical!layer!(the!
       “actual! wires! or! airwaves! over! which! data! will! flow”),! an! application! layer! (which!!
                                                               1!

!
       distinctions! between! carriers,! content! providers,! social! networks,! hardware! makers,!
       and!intermediaries!controlling!various!“clouds”!of!computing.!!Now!new!joint!ventures!
       and! proposed! mergers! are! blurring! these! distinctions.! ! We! can! expect! increasing!
       pressure! for! vertical! integration! and! horizontal! cooperation! as! new! business! models!
       promote! synergistic! combinations! of! databases! and! internet! access.! For! example,!
       Google!is!working!on!deals!with!both!Verizon!and!Comcast!to!cement!its!dominance!in!
       search!functionalities!on!those!networks’!cell!phones.!While!such!deals!may!advance!
       consumer! welfare! in! the! short! run! (who! wouldn’t! mind! a! “Google! button”! on! their!
       smart! phone?),! they! raise! difficult! questions! about! equitable! access! to! information!
       and! transparency! in! the! ordering! of! online! life.4! ! The! FCC! has! ordered! Comcast! to!
       “come! clean”! about! its! network! management! practices—but! it! might! think! twice!
       about! ordering! transparency! from! a! combined! Google/Comcast! platform! given! the!
       search! engine! company’s! aggressive! assertion! of! trade! secrecy! to! keep! its! search!
       algorithms!private.5!

           The!old!net!neutrality!narrative!of!“carrier!vs.!search!engine”!may!give!way!to!new!
       forms!of!cooperation!that!magnify!the!effects!of!bias!by!the!collaborating!entities.!!For!
       example,!Google!has!recently!co"invested!with!Comcast!and!handset!manufacturers!to!
       develop!a!new!“Clearwire”!network.6!!In!return!for!its!participation,!“Google’s!search!
       engine! [will]! get[]! its! own! button! on! the! phones.”7! ! It! is! hard! to! imagine! a! more!
       effective! “fast! tracking”! of! one! application! provider’s! site! past! other! competitors’!
       offerings.!!Another!deal!in!the!works!would!“make!Google!the!default!search!provider!
                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       “represent[s]! the! tasks! people! might! want! to! perform! on! the! network”),! a! content! layer!
       (which! “contain[s]! actual! information! exchanged! among! the! network's! users”),! and! a! social!
       layer!(“where!new!behaviors!and!interactions!among!people!are!enabled!by!the!technologies!
       underneath.”).!
       4
         ! Mergers! are! also! possible,! raising! other! difficult! questions.! ! See,! e.g.,! Randal! Picker,!
       Competition! and! Privacy! in! Web! 2.0! and! the! Cloud,! NW! L.! REV.! COLLOQUY! (2008)! (“Limits! on!
       disclosure!of!information!across!firms!can!have!perverse!effects!as!firms!can!circumvent!those!
       limits!through!horizontal!or!vertical!integration.”).!!!
       5
         !!Frank!Pasquale,!Internet!Nondiscrimination!Policies!for!Competition!Online,!Testimony!before!
       the!House!Judiciary!Committee’s!Task!Force!on!Competition!Policy,!July!15,!2008,!available!at!
       <http://judiciary.house.gov/hearings/pdf/Pasquale080715.pdf>.!!!
       6
         !!Tom! Steinert,! Net! Neutrality! and! Google’s! Openness! Before! The! FCC,! ZDNET,!
       http://blogs.zdnet.com/BTL/?p=9487! (July! 30,! 2008! 9:37! EST)! (last! visited! Aug! 25,! 2008)!
       (“Google! says! the! network! is! open! and! Clearwire! will! only! ‘engage! in! reasonable! and!
       competitively"neutral! network! management.’! But,! from! a! practical! standpoint,! is! it!
       ‘competitively"neutral’! if! the! managers! of! the! network! favor! one! of! their! partners! to! be! the!
       door!that!customers!open!to!enter!the!Internet?”).!!
       7
         !!Thomas!Hazlett,!On!a!Clearwire,!You!Can!See!Everything,!Fin.!Times,!July!23,!2008,!available!
       at! <http://www.ft.com/cms/s/0/dac15122"58cc"11dd"a093"000077b07658,s01=1.html>! (last!
       visited!Aug!28,!2008).!!As!Hazlett! puts!it,!if! this!“model,!where! the! carrier!extracts!payment!
       from! mobile! apps! for! a! preferred! spot! on! the! wireless! web,! is! ‘open’! –! then! ‘open’! all!
       capitalists!must!be.”!!!
                                                                                              2!

!
    on!Verizon!devices!and!give!it!a!share!of!ad!revenue.”8!!As!the!landscape!of!internet!
    competition! rapidly! shifts,! dominant! search! engines! like! Google! may! become! less! a!
    countervailing!force!keeping!carriers!accountable,!and!more!a!beneficiary!of!the!very!
    discriminatory! tactics! they! once! decried.! ! As! Paul! Ohm! notes,! the! privacy! concerns!
    that!have!dogged!Google!may!burden!carriers!as!they!strive!to!become!more!“Google"
    like”!in!their!network!management!and!surveillance.9!
         !
         Continuing! debates! over! whether! these! networks! integrating! the! physical,!
    application,! content,! and! social! layers! of! the! internet! are! more! like! mail! services! or!
    electric! grids! are! unlikely! to! improve! policy! more! than! marginally.! ! Nor! are! the!
    philosophical! commitments! of! advocates! of! network! neutrality! in! the! deontological!
    school! ever! likely! to! be!shared! by! those! fiercely! opposed! to! regulation.! ! Though! the!
    legal!academy’s!aspiration!to!the!rigor!of!academic!economics!or!philosophy!may!lead!
    to!internal!rewards!for!ever!more!refined!model"building,10!more!pragmatic!concerns!
    drive!the!politicians!and!policymakers!who!complement!the!research!university!as!our!
    audience.! ! A! practical! approach! to! the! new! centripetal! forces11! in! communications!
    policy! would! engage! in! two! types! of! comparativism:! deep! engagement! with! other!
    nations’!experiences!in!this!sphere,!and!a!willingness!to!entertain!broader!application!
    of! tactics! and! proposals! in! one! sphere! (such! as! operating! systems! and! devices)! to!
    govern! parallel! problems! in! other! spheres! (such! as! social! networks! and! search!
    engines).!!!

        In!his!article!“What!the!Publisher!Can!Teach!the!Patient,”!Jonathan!Zittrain!argued!
    that! some! principles! and! tactics! of! cyberlaw! could! solve! nettlesome! issues! in! the!
    development!of!electronic!health!records.!!This!essay!proposes!that!debates!in!health!
    law! can! teach! internet! scholars! some! important! lessons! in! the! brave! new! world! of!
    vertically!integrated!physical,!content,!and!social!layers!on!the!internet.!!For!much!of!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       8
         !!Amol! Sharma,! Verizon,! Google! Close! to! Mobile! Search! Deal,! Wall! St.! J.,! Aug! 22,! 2008,! A1,!
       available! at! <http://online.wsj.com/article/SB121937308672462691.html>! (last! visited! Aug!
       28,!2008).!
       9
         ! Paul! Ohm,! The! Rise! and! Fall! of! Invasive! ISP! Surveillance,! at!
       http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1261344! (“[T]his! Article! injects! privacy!
       into! the! network! neutrality! debate! "! a! debate! about! who! gets! to! control! innovation! on! the!
       Internet.! Despite! the! thousands! of! pages! that! have! already! been! written! about! the! topic,!
       nobody! has! recognized! that! we! already! enjoy! mandatory! network! neutrality! in! the! form! of!
       expansive! wiretapping! laws.! The! recognition! of! this! idea! will! flip! the! status! quo! and!
       reinvigorate! a! stagnant! debate! by! introducing! privacy! and! personal! autonomy! into! a!
       discussion!that!has!only!ever!been!about!economics!and!innovation.”)!!
       10
           ! See,! e.g.,! STEPHEN! MARGLIN,! THE! DISMAL! SCIENCE! 129! (Harvard! U.P.,! 2007)! (identifying! four!
       “dimensions”!of!systems!of!knowledge–epistemology,!transmission,!innovation,!and!power—
       and! discussing! how! the! algorithmic! modes! of! knowledge! favored! by! the! academy! displace!
       older,!traditional!forms!of!practical!knowledge).!!!
       11
           !See!Kevin!Werbach,!The!Centripetal!Web.!
                                                               3!

!
    the! Bush! administration,! economic! modeling! was! the! key! to! a! movement! called!
    “consumer"directed! health! care”! (CDHC).! ! The! administration’s! program! of!
    deregulation! for! the! internet! mirrored! its! aspirations! in! the! health! field.! ! The! basic!
    idea! of! CDHC! was! that! health! care! was! like! any! other! consumer! product—and! that!
    increasing!the!role!of!the!market!in!deciding!its!distribution!would!both!reduce!its!cost!
    and! incentivize! innovation.! ! Like! the! deontological! advocates! of! network! neutrality,!
    many! advocates! for! universal! health! care! tried! to! call! attention! to! the! extreme!
    shortcomings!of!the!current!system!and!how!little!CDHC!would!do!to! address!them.!!
    But! a! media! ill"equipped! to! handle! nuance! boiled! the! dispute! down! to! advocacy! of!
    universal!access!to!care!versus!advocacy!of!cost"control!and!innovation—a!parallel!to!
    the!current!deontological/economistic!standoff!in!network!neutrality!scholarship.!!!

        !Yet! advocates! of! health! care! reform! are! increasingly! complementing! traditional!
    moral!arguments!for!access!with!a!broader!regulatory!vision.!!The!extensive!works!of!
    scholars! like! Kieke! Okma,! Daniel! Callahan,! Angela! Wasunna,! and! Timothy! Jost! have!
    brought!to!light!the!diversity!of!international!approaches!to!health!care!provision.!!The!
    old!comparisons!between!the!US!and!Britain!or!Canada!have!given!way!to!much!more!
    sophisticated! analyses! of! how! a! French,! German,! Dutch,! Swiss,! or! Taiwanese! model!
    could!inform!future!advances!in!health!care!delivery!and!financing.!!Empirical!data!is!
    demonstrating!how!far!ahead!each!of!these!countries!is!on!the!access!and!cost"control!
    fronts—often!with!comparable!or!better!health!outcomes!than!the!US.!

        Scholars! like! Susan! Crawford! and! Thomas! Bleha! have! already! highlighted! the!
    deficiencies! of! American! internet! access! in! comparison! with! that! prevalent! in! other!
    countries.12! ! The! question! now! is! how! to! translate! those! observations! into! a! new!
    sociology! of! expertise! at! the! agencies! that! will! have! the! most! influence! over! the!
    development! of! the! internet.! ! For! some! time! economic! approaches! have! been! the!
    “gold! standard”! for! providing! social! scientific! testing! of! legal! theories.! ! The! rise! of!
    comparativism!in!health!law!and!policy!suggests!an!equally!prominent!role!for!other!
    social! sciences! in! the! FCC! and! the! FTC—those! whose! practitioners! can! deeply!
    understand!the!policy!decisions!of!other!nations!and!suggest!ways!that!our!regulators!
    can! help! spur! positive! outcomes! witnessed! abroad.! ! Comparativism! should! also! be!
    complemented!by!the!type!of!technical!expertise!necessary!for!agencies!to!genuinely!
    understand! the! business! models! and! network/database! management! practices!
    deployed! by! the! creative! corporate! combinations! that! new! business! pressures! are!
    sure!to!catalyze.13!!If!the!current!financial!crisis!teaches!anything,!it!is!the!danger!of!a!




!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       12
          !Crawford,!The!Internet!and!the!Radio;!Bleha,!Down!to!the!Wire.!
       13
          ! See,! e.g.,! Danny! Weitzner,! What! to! do! about! Google! and! Doubleclick?! Hold! Google! to! its!
       word!            with!            some!            extreme! factfinding! about! privacy! practices,”!  at!!
       http://dig.csail.mit.edu/breadcrumbs/node/203!
                                                                          4!

!
    regulatory!regime!that!throws!up!its!hands!at!the!complexity!of!a!given!sector’s!modes!
    of!innovation.14!!!

        Internet! scholars! should! anticipate! further! integration! of! conduit,! content,! and!
    content!selection!in!either!vertically!integrated!firms!or!joint!venture!deals.!!Forward"
    looking! discussions! must! take! into! account! the! types! of! “smart! networks”! and!
    business! models! that! will! challenge! extant! legal! frameworks.! ! Comparativism! can!
    move! us! toward! such! a! goal,! but! only! once! the! shortcomings! of! current! economic!
    models! are! made! clear.! ! Part! II! and! III! of! this! essay! engages! in! that! brush"clearing!
    project,! detailing! how! a! purely! economic! approach! to! communications! policy! either!
    permits!incontestably!negative!outcomes!or!degenerates!into!an!unresolvable!debate!
    about! the! scope! and! valuation! of! externalities! to! be! addressed.15! ! Rather! than!
    translating! their! concerns! into! the! methodologically! individualistic! language! of!
    economics,! innovation! policymakers! should! focus! on! a! lower! level! of! abstraction—
    namely,! concrete! rules! successfully! adopted! or! advocated! in! the! context! of! other!
    “bottlenecks,”!in!the!US!or!in!other!countries!(Part!IV).!!A!new!sociology!of!expertise!at!
    the! agencies! can! renew! America’s! openness! to! the! best! practices! of! other! nations.!!
    Just! as! the! states! of! America! serve! as! “laboratories! for! democracy,”! the! policy!
    successes! (and! shortcomings)! of! other! nations! should! be! treated! as! vital! sources! of!
    data!for!our!own!innovation!policy.!

         !

         !

    II.!Reconsidering!Economic!Perspectives!on!the!Network!Neutrality!Debate!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       14
          ! NYT! (“Andrew! Lo,! a! professor! at! the! Sloan! School! of! Management! at! the! Massachusetts!
       Institute! of! Technology,! and! David! Ruder,! a! professor! emeritus! at! Northwestern! University!
       School! of! Law,! each! said! that! hedge! funds! did! not! disclose! enough! information! about! their!
       activities! to! allow! regulators! to! determine! whether! particular! funds! could! cause! market!
       turmoil.! ! “The! fact! is! that! we! cannot! come! to! any! firm! conclusion! because! we! simply! don’t!
       have! the! data,”! said! Mr.! Lo,! who! is! affiliated! with! an! asset! management! company! that!
       manages!several!hedge!funds.!“Additional!transparency,!even!now,!will!provide!some!sense!of!
       what!we’re!likely!to!see!over!the!next!year!or!two.””);!Stephen!Mihm,!The!Black!Box!Economy,!
       BOSTON! GLOBE!(2008)!(“By!cleverly!exploiting!regulatory!loopholes,!investment!banks!created!
       new!types!of!high"risk!investments!that!did!not!appear!on!their!balance!sheets.!Safe!from!the!
       prying! eyes! of! regulators,! they! allowed! banks! to! dodge! the! requirement! that! they! keep! a!
       certain! amount! of! money! in! reserve.”);! TNR! article! by! Peterson! Institute! head! on!
       unacceptability! of! regulators! who! lack! understanding! of! the! internal! workings! of! the!
       regulated.!
       15
          ! Some! scholars! have! attempted! to! interpret! the! cultural! and! political! worries! of! the!
       deontological! school! into! the! language! of! innovation! economics.! ! Frischmann! &! Waller;!
       Frischmann! &! van! Schewick.! ! ! But! their! work! has! been! resisted! by! more! conservative! legal!
       economists!and!does!not!yet!adequately!influence!the!moderate!legal!economists!whose!work!
       focuses!almost!entirely!on!the!promotion!of!consumer!protection!and!consumer!welfare.!!!
                                                              5!

!
       High"speed! broadband! connections! are! at! the! center! of! a! storm! of! controversy!
    over!the!obligations!of!carriers.!!As!duopolies,!most!broadband!markets!are!less!than!
    competitive.! ! They! abut! intermediary! markets! (in! general"purpose! search,! auctions,!
    and!social!networking)!that!may!be!even!more!concentrated.16!In!response!to!actual!
    and! potential! abuses! of! that! market! power,! many! network! neutrality! proponents!
    champion! rules! that! would! limit! carriers’! and! intermediaries’! ability! to! discriminate!
    against! certain! applications! providers! or! to! favor! business! partners—and! would!
    require!revelation!of!such!discrimination!when!it!occurs.!!!

        Laissez"faire! analysts! counsel! restraint,! arguing!that! antitrust! law! provides! ample!
    remedies! to! penalize! discrimination! should! it! prove! “anti"competitive.”! ! They! offer!
    sponsored! and! independent! research! highlighting! investment! produced! by!
    deregulation! and! the! resulting! competition! that! would! discipline! discriminatory!
    providers.! ! In! response,! advocates! of! network! neutrality! have! developed! rival!
    economic! models! demonstrating! efficiency! gains! from! enforceable! prohibitions!
    against! discrimination.! ! Even! though! these! advocates! welcome! antitrust! liability! for!
    anticompetitive!deprioritization!of!carriers’!rivals,!they!doubt!antitrust!actions!would!
    be! initiated! quickly! enough! to! deter! discrimination! effectively.! ! They! seek! forward"
    looking!rules,!not!backward"looking!antitrust!litigation!that!would!mire!all!concerned!
    in! years! of! discovery! and! second"guessing! from! Republican"dominated! appellate!
    courts!increasingly!skeptical!of!per!se!illegality.!!!!

        Although! scholars! rigorously! defend! network! neutrality! rules! from! a! law! &!
    economics!perspective,!they!risk!falling!into!the!same!“antitrust!trap”!that!they!urge!
    policymakers!to!avoid.!!Antitrust!cases!tend!to!consume!a!great!deal!of!time!because!
    economic!conduct!is!subject!to!many!different!interpretations.!!Indeed,!one!person’s!
    anticompetitive!conduct!is!another’s!effective!business!strategy.!!The!same!unending!
    (and!indeterminate)!arguments!threaten!to!stall!discourse!on!network!neutrality.!!!

        Advocates!of!network!neutrality!now!stand!at!a!crossroads.!!They!can!continue!to!
    debate! the! issue! in! economic! terms,! developing! ever! more! refined! models! of!
    infrastructure!and!spillovers.!!Or!they!can!shift!the!debate!away!from!economic!theory!
    to! more! deontological! grounds.! ! Jerry! Kang! has! begun! this! process! with! his! article!
    Race.Net! Neutrality.! ! This! Part! builds! on! Kang’s! work! in! arguing! that! the! stalled!
    economic!debate!on!net!neutrality!should!be!complemented!with!careful!analysis!of!
    the! cultural! and! political! consequences! of! untrammeled! power! for! intermediaries.!!
    Such! concerns! do! not! dissolve! even! if! carriers! move! away! from! commodity"provider!


!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       16
          ! Frank! Pasquale,! Internet! Nondiscrimination! Principles,! 2008! U.! Chi.! Leg.! Forum;! Dawn!
       Nunziato.! ! For! concentration! statistics,! see! David! S.! Evans,! Antitrust! Issues! Raised! By! The!
       Emerging! Global! Internet! Economy,! 102! NW.! U.! L.! REV.! COLLOQUY! 285! (April! 28,! 2008)! citing!
       comScore,!MyMetrix!Key!Measures!Report!(Dec.!2007);!comScore,!My"Metrix!qSearch!2.0!Key!
       Measures!Report!(Dec.!2007).!
                                                             6!

!
    status! to! integrate! “smart! networks”! with! tethered! hardware,! search,! or! other!
    functionalities.!!!

         Section!A!of!this!part!describes!the!present!contours!of!the!economic!debate!over!
    network!neutrality.!!Section!B!articulates!the!cultural!and!political!arguments!in!favor!
    of! restricting! carriers’! and! dominant! intermediaries’! ability! to! discriminate! against!
    certain! content! and! applications.! ! This! part! contends! that! the! most! compelling!
    arguments!for!network!neutrality!may!be!found!in!cultural!and!political!concerns,!not!
    economics.! ! Comparative! analysis! casts! doubt! on! the! economic! arguments! against!
    network! neutrality! by! demonstrating! that! regulation! can! spur! innovation.! ! Once!
    policymakers!move!beyond!the!classic!economic!debates!on!network!neutrality,!they!
    can!appreciate!broader!perspectives!on!nondiscrimination!from!other!legal!traditions!
    and!work!on!other!“bottlenecks”!of!internet!activity.!

         A.!Present!Contours!of!the!Economic!Debate!on!Network!Neutrality!

         Under! the! Bush! Administration,! the! Federal! Trade! Commission! (FTC)! and! the!
    Antitrust! Division! of! the! U.S.! Department! of! Justice! (DOJ)! have! embraced! economic!
    criticism! of! network! neutrality.171! ! The! Antitrust! Division! claims! that! network!
    neutrality! regulation! should! not! be! imposed! on! broadband! providers! until! abusive!
    practices!have!been!thoroughly!documented.18!!It!believes!that!the!broadband!market!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       17
          !See!Ex!parte!filing,!U.S.!Dep’t!of!Justice,!In!the!Matter!of!Broadband!Industry!Practices!(Sept.!
       6,!2007),!http://www.usdoj.gov/atr/public/comments/225767.pdf!(asserting!that!free!market!
       competition!is!the!best!way!to!foster!innovation!and!the!development!of!the!Internet);!FTC,!
       Broadband!                                          Connectivity!     Competition!                   Policy,!
       http://www.ftc.gov/reports/broadband/v070000report.pdf! (announcing! ! FTC’s! caution!
       regarding!regulatory!moves!here).!
       18
          ! DOJ! Ex! Parte! Filing,! supra! n.! 1,! at! 4! (“Despite! the! Commission's! request! for! evidence! of!
       harmful!discrimination!or!behavior,!as!discussed!further!below,!commenters!failed!to!present!
       evidence!suggesting!that!a!problem!exists.”).!!The!DOJ!here!followed!a!long!line!of!laissez"faire!
       analysts! who! have! argued! that! preemptive! regulation! is! unnecessary.! ! See! J.! Gregory! Sidak,!
       Telecommunications! in! Jericho,! 81! CAL.! L.! REV.! 1209,! 1209! (1993)! (“American!
       telecommunications! regulation! is! about! to! collapse! like! the! walls! of! Jericho.”);! Alfred! Kahn,!
       Telecommunications:!The!Transition!from!Regulation!to!Antitrust,!5!J.! TELECOMM.! &! HIGH! TECH.!
       L.! 159,! 183! (2006)! (asserting! that! the! broadband! market! is! not! suited! for! public! utility"style!
       regulation).! ! But! see! Barbara! A.! Cherry,! Misusing! Network! Neutrality! to! Eliminate! Common!
       Carriage!Threatens!Free!Speech!and!the!Postal!System,!33!N.!KY.!L.!REV.!483,!502!(2006)!(“[T]o!
       advocate!primary!reliance!on!antitrust!principles!ignores!important!historical!facts.!Common!
       carriage! regulation,! both! under! the! common! law! and! statutorily,! evolved! prior! to! antitrust!
       regulation.!Thus,!antitrust!law!subsequently!evolved!to!augment"that!is,!to!address!issues!and!
       situations! not! already! encompassed! by"common! carriage!.!.!.!.! ! Advocates! of! a! regime! based!
       solely! on! antitrust! fail! to! explain! how! the! issues! pertaining! to! the! provider"to"customer!
       relationship,! that! have! been! governed! by! the! ex! ante! rules! of! industry"specific! common!
       carriage! regulation,! will! be! adequately! addressed! by! antitrust! ex! post! remedies.”);! Jonathan!
       Zittrain,!The!Un"Microsoft!Un"Remedy:!Law!Can!Prevent!the!Problem!that!It!Can’t!Patch!Later,!
                                                                         7!

!
       is!increasingly!competitive!in!that!it!gives!consumers!an!“exit”!option,!even!if!they!lack!
       a! “voice”! in! network! management.19! ! The! Division! accepts! the! general! laissez"faire!
       position!that!network!operators!will!maximize!the!social!utility!of!networks!if!they!can!
       privately! profit! from! the! expansion! of! services! on! them.20! ! Although! the! Federal!
       Communications! Commission! has! been! more! receptive! to! network! neutrality!
       regulation,!it!has!announced!that!it!will!only!enforce!such!principles!on!a!case"by"case!
       basis.21!!!
            !
            Both! the! FTC! and! the! DOJ! overlook! economic! analysis! supporting! internet!
       nondiscrimination! principles.22! ! Indeed,! the! DOJ! has! yet! to! address! the! work! of!!

                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       31!CONN.!L.!REV.!1361,!1361!(1999)!(arguing!that!antitrust!actions!are!often!resolved!too!late!to!
       stop!industry"transforming!consequences!of!anticompetitive!behavior).!!!!!
       19
          !DOJ!Ex!Parte!Filing!(“The!Commission's!statistics!report!that!the!total!number!of!broadband!
       fiber!lines!increased!from!40,627!in!2000!to!698,990!as!of!June!30,!2006,!and!the!number!of!
       residential!broadband!fiber!lines!likewise!increased!from!325!in!2000!to!442,027!fiber!lines!as!
       of! June! 30,! 2006.”).! ! But! see! Tim! Wu,! Network! Neutrality:! Competition,! Innovation,! and!
       Nondiscriminatory!Access,!Testimony!Before!the!House!Committee!on!the!Judiciary!Telecom!&!
       Antitrust!                                   Task!                                 Force,!                                 available!                                   at!
       http://papers.ssrn.com/sol3/papers.cfm?abstract_id=903324#PaperDownload! (noting! that!
       the! broadband! industry! has! a! long! history! of! corruption! that! drives! a! history! of! regulatory!
       oversight!because!“ninety"four!percent!of!Americans!have!either!zero,!one,!or!two!choices!for!
       broadband!access.”).!
       20
         ! DOJ,! Ex! Parte! Filing! re! FCC! Hearing! on! Broadband! Industry! Practices,! available! at!
       http://www.usdoj.gov/atr/public/comments/225767.htm! (“Precluding! broadband! providers!
       from! charging! fees! for! priority! service! could! shift! the! entire! burden! of! implementing! costly!
       network!expansions!and!improvements!onto!consumers.!Because!the!average!consumer!may!
       be!unwilling!or!unable!to!pay!significantly!more!for!access!to!the!Internet!in!order!to!ensure!
       smooth!delivery!to!consumers!demanding!bandwidth"intensive!and!latency"sensitive!content,!
       critical!network!expansion!and!improvement!may! be!significantly!reduced!or!delayed.”);! see!
       also! Christopher! S.! Yoo! (debating! Tim! Wu),! Keeping! the! Internet! Neutral?:! Tim! Wu! and!
       Christopher!Yoo!Debate,!59!Fed.!Comm.!L.J.!575,!581!(2007)!(“At!this!point,!it!is!impossible!to!
       foresee!which!architecture!will!ultimately!represent!the!best!approach.!When!it!is!impossible!
       to!tell!whether!a!practice!would!promote!or!hinder!competition,!the!accepted!policy!response!
       to! permit! the! practice! to! go! forward! until! actual! harm! to! consumers! can! be! proven.! This!
       restraint! provides! the! room! for! experimentation! upon! which! the! normal! competitive!
       processes!depend.”).!!!
       21
         ! ! In! the! Matter! of! Formal! Complaint! of! Free! Press! and! Public! Knowledge! Against! Comcast!
       Corporation!for!Secretly!Degrading!Peer"to"Peer!Applications,!FCC!File!No.!EB"08"IH"15l8,!Aug.!
       20,! 2008,! at! ¶! 32! (“we! think! a! case"by"case,! adjudicatory! approach! comports! with!
       congressional!directives!and!Commission!precedents.”).!
       22
         !I!will!use!the!term!“internet! nondiscrimination!principles”!interchangeably! with! the!terms!
       “network! neutrality”! in! this! paper! in! order! to! emphasize! the! degree! to! which! broader!
       nondiscrimination! principles! are! needed! to! cover! not! only! traditional! phone,! cable,! and!
                                                              8!

!
       prominent! pro"net"neutrality! scholars,! such! as! van! Schewick,23! Economides,24!
       Frischmann! &! Waller,25! Crawford,26! and! Wu.27! ! Scholars! such! as! van! Schewick! admit!
       the! difficulties! of! developing! a! comprehensive! set! of! rules! governing! common!
       carriage,! yet! argue! that! “increasing! the! amount! of! application"level! innovation!
       through! network! neutrality! regulation! is! more! important! than! the! costs! associated!
       with! it.”28! ! They! suggest! that! network! operators! would! inevitably! be! tempted! to!
       elevate! the! salience! and! availability! of! partners’! applications! and! content! and! thus!
       block!or!degrade!access!to!competitors’!applications.!!For!this!reason,!Frischmann!and!
       van!Schewick!have!argued!that!networks!constitute!infrastructure!of!the!same!sort!as!
       roads,! bridges,! and! public! transit.29! ! They! explain! that! although! managers! of!
       transportation!networks!can!reasonably!charge!more!to!certain!customers!at!certain!
       times! to! manage! congestion! or! perform! repairs,! it! would! be! deeply! unfair! for! the!
       manager!of!a!highway!to!ban!Volkswagen!vehicles!because!it!struck!a!special!deal!with!
       General!Motors.!!!
           !
           To! counter! these! arguments,! opponents! of! network! neutrality! invoke! their! own!
       metaphors.! ! They! analogize! network! providers! to! the! mail,! contending! that! the! U.S.!
       postal! service! lets! customers! purchase! priority! mail! delivery,! while! private! carriers!
       such! as! FedEx! provide! fast! service! as! an! alternative! to! U.S.! Postal! Service! overnight!
       mail.30! ! Network"neutrality! opponents! similarly! point! to! airlines! that! cross"subsidize!
                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       satellite! carriers! but! also! the! concentrated! intermediaries! that! play! nearly! as! important! a!
       conduit!role.!!!
       23
          !Barbara!van!Schewick,!Towards!an!Economic!Framework!for!Network!Neutrality!Regulation,!
       5!J.!ON!TELECOMM.!&!HIGH!TECH.!L.!329,!332.!!!
       24
          ! Nicholas! Economides,! 'Net! Neutrality',! Non"Discrimination! and! Digital! Distribution! of!
       Content!Through!the!Internet,!NET!Institute!Working!Paper!No.!07"03!(March!2007)!available!
       at!http://ssrn.com/abstract=977096!
       25
          !Spencer!Weber!Waller!&!Brett!M.!Frischmann,!Essential!Facilities,!Infrastructure,!and!Open!
       Access!(November!2,!2006)!available!at!http://ssrn.com/abstract=942074.!
       26
          !Susan!Crawford!Blog,!FAQ!on!Net!Neutrality,!http://scrawford.blogware.com/blog!(May!31,!
       2006,!23:57!EST);!Crawford,!The!Internet!and!the!Radio.!
       27
          !Timothy!Wu,!Network!Neutrality,!Broadband!Discrimination,!2!J.! TELECOMM.! &! HIGH! TECH.! L.!
       141!(2003).!!
       28
          !Barbara!van!Schewick,!Towards!an!Economic!Framework!for!Network!Neutrality!Regulation,!
       5! J.! ON! TELECOMM.! &! HIGH! TECH.! L.! 329,! 332! (2006)! (applying! “insights! from! game! theory,!
       industrial! organization,! antitrust,! evolutionary! economics! and! management! strategy! to!
       analyze!network!operators’!incentives!to!discriminate,!the!impact!of!potential!discriminatory!
       behavior!on!innovation!and!social!welfare,!and!the!costs!of!regulation”).!
       29
          !See!Brett!M.!Frischmann,!An!Economic!Theory!of!Commons!and!Infrastructure!Management,!
       89! MINN.! L.! REV.! 917,! 918! (2005)! (establishing! that! for! some! classes! of! important! resources,!
       there!are!strong!economic!arguments!for!managing!and!sustaining!the!resources!in!an!openly!
       accessible!manner).!
       30
          ! But! see! Weiser,! 60! ADMIN.! L.! REV.! 273,! 284"5! (Randy! May! “and! others! claim! that! robust!
       competition! in! the! broadband! marketplace! will! prevent! firms! from! acting! in! an!
                                                                                              9!

!
       rural! routes! by! selling! very! high"priced! business! seats! and! using! those! revenues! to!
       make! up! for! seats! sold! for! below! average! cost! on! the! rest! of! the! plane.31! ! Network!
       operators! argue! that! a! “fast! lane”! of! access! is! necessary! to! fund! infrastructural!
       improvements! that! (may! eventually)! redound! to! everyone’s! benefit.32! ! In! this! view,!
       price!discrimination!(or!“Ramsey!Pricing”)!is!the!best!way!to!assure!that!the!Internet!is!
       allocated!to!its!highest!and!best!use.33!!These!arguments!play!the!“wrong!metaphor”!
       card—the! insistence! that! economic! theory! supporting! net! neutrality! incorrectly!
       analogizes!internet!communications!networks!to!traditional!common!carriers.!

           Network!neutrality!supporters!contend!that!a!division!of!access!into!slow!and!fast!
       lanes! would! lead! to! a! more! invasive! and! counterproductive! management! of! the!
       Internet.34! ! They! believe! that! Internet! access! is! properly! structured! as! a! commodity!
       service!to!be!modeled!on!the!electric!grid:!

              The! general! purpose! and! neutral! nature! of! the! electric! grid! is! one! of! the!
              things! that! make! it! extremely! useful.!! The! electric! grid! does! not! care! if! you!
              plug!in!a!toaster,!an!iron,!or!a!computer.!!Consequently!it!has!survived!and!
                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       anticompetitive!fashion.!The!reality,!however,!is!that!the!search!for!the!third!broadband!pipe""
       i.e.,! an! alternative! to! cable! modem! and! DSL! connections""! is! ongoing,! and! the! broadband!
       access! marketplace! is! largely! a! duopoly.! In! this! respect,! the! broadband! market! differs! from!
       that! of,! for! example,! overnight! delivery! both! in! that! U.S.! post! office! ‘best! effort’! delivery! is!
       regulated!and!there!is!considerable!competition!in!the!overnight!delivery!market!(there!are!at!
       least!four!facilities"based!providers.”).!
       31
          ! Compare! Stuart! Altman! et! al.,! Could! US! Hospitals! go! the! Way! of! U.S.! Airlines,! available! at!
       http://content.healthaffairs.org/cgi/content/abstract/25/1/11! (“U.S.! hospitals! can! treat!
       Medicare!and! Medicaid!patients!at!less!than! cost,!care!for!the!uninsured,! and!provide!other!
       money"losing! services! because! they! can! cross"subsidize.! By! 2025! the! need! for! general!
       hospitals!to!cross"subsidize!will! greatly!in"crease,!but!their!ability!to!do!so!will!be!diminished.!
       U.S.!hospitals!could!begin!to!resemble!U.S.!airlines:!severely!cutting!costs,!eliminating!services,!
       and! suffering! financial! instability.”).! ! Advocates! of! consumer"directed! health! care! have! been!
       very!critical!of!cross"subsidies.!!FTC"DOJ!REPORT,!A!DOSE!OF!COMPETITION!(2007).!!!
       32
          !!!C.!Scott!Hemphill,!Network!Neutrality!and!the!False!Promise!of!Zero"Price!Regulation,!25!
       YALE! J.! REG.! 135! (2008)! (“The! analogy! to! common! carriage,! however,! is! imperfect.! Network!
       neutrality!departs!from!the!traditions!of!common!carriage!in!.!.!.!![proposing!a]!zero"price!rule!
       [which]!prohibits!an!access!provider!from!charging!content!providers!to!send!information!to!
       consumers.!.!.!.!Requiring!a!uniform,!zero!price!exceeds!the!restrictions!of!common!carriage,!
       which! tolerates! some! forms! of! price! discrimination! in! which! an! offer! available! to! one!
       purchaser!is!also!available!to!others.”).!!!
       33
          ! See! Christopher! Yoo,! Would! Mandating! Broadband! Network! Neutrality! Help! or! Hurt!
       Competition?! A! Comment! on! the! End"to"End! Debate,! 3! J.! ON! TELECOMM.! &! HIGH! TECH.! L.! 23!
       (2004)! (arguing! that! allowing! last"mile! providers! to! use! vertical! integration! to! differentiate!
       their! networks! would! allow! the! realization! of! certain! efficiencies! and! would! permit! them! to!
       offer!a!broader!range!of!services).!
       34
          ! See! Jonathan! Zittrain,! The! Generative! Internet,! 119! HARV.! L.! REV.! 1974,! 1978!(2006)! (citing!
       scholars!who!have!argued!for!keeping!the!Internet!“open”).!
                                                                                             10!

!
         supported!giant!waves!of!innovation!in!the!appliance!market.35!                       !

    For!example,!without!a!neutral!grid,!Maytag!could!strike!deals!with!electric!companies!
    giving!Maytag!exclusive!access!to!“high!quality”!current,!in!exchange!for!some!cut!of!
    the!company’s!profits.36!!Network!operators!reply!that!such!vertical!integration!might!
    actually! instigate! innovation! by! encouraging! closer! cooperation! between! electric!
    companies!and!appliance!manufacturers!to!assure!mutual!optimization!of!goods!and!
    services.! ! Yet! a! long! history! of! public! utility!regulation! has! presumed! the! opposite—
    that!“business!affected!with!a!public!interest”!should!not!be!able!to!take!advantage!of!
    its!monopolistic!or!quasi"monopolistic!position!to!“pick!winners”!among!the!products!
    and!services!dependent!on!the!utility.37!

        Tim! Wu! is! one! of! the! most! prominent! advocates! for! applying! nondiscrimination!
    principles! to! the! Internet.! ! He! focuses! on! the! “common! carriage”! requirements! that!
    telephone!companies!have!had!to!respect!since!the!Kingsbury!Commitment!of!1918.38!!
    Later,!in!the!“Hush"a"Phone”!and!“Carterfone”!cases,39!antitrust!enforcers!successfully!
    moved! to! prevent! AT&T! from! banning! the! attachment! of!objects! to! telephones! that!
    did!not!affect!the!quality!of!service!generally.40!!The!FCC!and!the!courts!reasoned!that!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       35
          ! Tim! Wu,! Network! Neutrality! FAQs,! available! at! http://timwu.org/network_neutrality.html!
       [hereinafter!Wu!FAQs].!!
       36
          ! See! 59! Fed.! Comm.! L.J.! at! 582! (2007).! ! Devices! are! increasingly! capable! of! reporting! their!
       provenance.!See!Randy!Picker,!Rewinding!Sony:!The!Evolving!Product,!Phoning!Home,!and!the!
       Duty! of! Ongoing! Design! (John! M.! Olin! Law! &! Economics! Working! Paper,! No.! 241,! 2005),!
       available! at! http://www.law.uchicago.edu/lawecon/index.html.! ! Lest! this! seem! fanciful,!
       consider!Randy!Picker’s!Rewinding!Sony!on!the!economic!advantages!of!devices!that!“phone!
       home”!to!their!manufacturers!on!buyers’!usage!patterns.!!New!advances!in!surveillance!and!
       reporting! technology! embedded! in! devices! (such! as! RFID! chips)! encourage! such! business!
       models.!!
       37
          ! See! Oren! Bracha! &! Frank! Pasquale,! Federal! Search! Commission?! Access,! Fairness,! and!
       Accountability!in!the!Law!of!Search,!CORNELL!L.!REV.!(2008).!
       38
          !Wu!FAQs!(“The!concept!of!a!“common!carrier,”!dating!from!16th!century!English!common!
       law,! captures! many! similar! concepts.!! A! common! carrier,! in! its! original! meaning,! is! a! private!
       entity!that!performs!a!public!function!(the!law!was!first!developed!around!port!authorities)”).!!!
       39
          ! Hush"A"Phone! Corp.! v.! United! States,! 238! F.2d! 266! (D.C.! Cir.! 1956);! In! re! Use! of! the!
       Carterfone!Device!in!Message!Toll!Telephone!Service,!Decision,!13!FCC!2d!420!(1968),!recon.!
       denied,!14!FCC!2d!571!(1968).!
       40
          ! See! Rob! Frieden,! Hold! the! Phone:! Assessing! the! Rights! of! Wireless! Handset! Owners! and!
       Carrier,! available! at! http://ssrn.com/abstract=1081345.! The! Hush"a"Phone! was! a! rubber! cup!
       placed! over! a! mouthpiece! designed! to! enhance! the! privacy! of! phone! conversations.! ! The!
       Carterfone! decision! required! the! telephone! companies! to! allow! the! attachment! of! modems!
       and! fax! machines.! ! This! decision! was! later! reaffirmed! by! one! of! the! most! deregulatory! FCC!
       Chairmen! in! the! agency’s! history,! Michael! Powell,! in! the! “four! freedoms”! he! aimed! to!
       guarantee! to! carriers’! customers.! ! See! Michael! K.! Powell,! Preserving! Internet! Freedom,!
       available!                 at!           http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC"243556A1.pdf!
                                                                        11!

!
       the!telephone!company!should!not!be!permitted!to!control!the!development!of!all!the!
       devices!that!would!eventually!be!capable!of!transmitting!data!over!its!lines.41!

           Advocates!of!nondiscrimination!norms!worry!that!the!types!of!sharp!practices!that!
       would! make! little! sense! in! real! space! could! easily! be! imposed! in! cyberspace.! ! For!
       example,! it! is! hard! to! imagine! why! an! airline! would,! say,! refuse! access! to! Marriott!
       employees!because!it!has!a!business!relationship!with!Hyatt.42!!Even!if!Hyatt!leveraged!
       such!a!deal,!the!uproar!in!the!press!would!be!enormous.!!However,!when!Comcast!bid!
       for! control! of! Walt! Disney! in! 2004,! it! would! have! been! easy! for! the! company! to!
       engineer! fast"track! access! to! Disney! content! onto! its! network! had! the! takeover!
       succeeded.! ! Norms! of! fair! play! on! the! Internet! are! sufficiently! in! flux,! such! that! the!
       media!would!be!unlikely!to!criticize!the!integration!of!content!and!conduit.43!!

           It!might!not!appear!a!great!loss!for!society!if!individuals!could!only!obtain!online!
       access!to!Disney!programs!when!purchasing!an!internet!connection!from!a!particular!
       carrier.! ! However,! as! convergence! continues,! the! range! of! programming! and!
       applications! online! will! play! an! increasingly! important! role! in! collective! life.!!
       Frischmann! and! van! Schewick! therefore! urge! a! principle! of! network! neutrality!
       designed!to!“insulate!end"users!from!market"driven!restrictions!on!access!and!use.”44!!
       They! endorse! fierce! competition! among! application! and! content! providers,! and!
       believe!that!such!competition!will!only!be!possible!if!broadband!providers!cannot!“tilt!
       the! playing! field”! in! favor! of! one! or! another! competitor.! ! For! this! reason,! they! are!
       skeptical! of! some! programs! that! would! allow! network! owners! to! “scan”! packets! of!
       data!to!determine!their!nature!and!provenance.!!Ideally,!the!network!itself!would!not!
       “distinguish! between! end! uses,! [would! not]! base! access! decisions! or! pricing! on! how!
       those! packets! may! be! used,”! and! would! not! “optimize! the! infrastructure! for! a!
       particular! class! of! end! uses.”45! ! Frischmann! and! van! Schewick! claim! that!
       nondiscrimination! principles! at! an! infrastructural! layer! are! needed! to! ensure!!
       innovation!in!!the!content!and!applications!layers!that!run!on!top!of!it.!
                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       (“consumers!should!be!permitted!to!attach!any!devices!they!choose!to!the!connection!in!their!
       homes.”).!!!
       41
          !238!F.2d!266!(D.C.!Cir.!1956);!13!FCC!2d!420!(1968).!!For!cognate!current!controversies,!see!
       id.!on!separating!handset!control!from!carrier!control!in!wireless!telecommunications.!!
       42
          !See!Bill!D.!Herman,!Opening!Bottlenecks:!On!Behalf!of!Mandated!Network!Neutrality,!59(1)!
       FED.!COMM.!L.J.!107!(2007)!(exploring!a!similar!example).!!
       43
          ! See,! e.g.,! Guy! Pessach,! Copyright! Law! as! Silencing! Restriction! on! Noninfringing! Materials:!
       Unveiling!the!Scope!of!Copyright’s!Diversity!Externalities,!76!S.! CAL.! L.! REV.!1067,!1079!(2003)!
       (discussing!untoward!effects!of!media!concentration).!
       44
          ! Brett! Frischmann! &! Barbara! van! Schewick,! Network! Neutrality! and! The! Economics! of! an!
       Information! Superhighway,! 47! JURIMETRICS! J.! 383,! 424! (2007);! see! also! Tim! Wu,! Why! Have! a!
       Telecommunications!Law,!5! J.!ON! TELECOM.! &! HIGH! TECH! 15!(2006);!Mark!A.!Lemley!&!Lawrence!
       Lessig,!The!End!of!End!to!End:!Preserving!the!Architecture!of!the!Internet!in!the!Broadband!Era,!
       48!U.C.L.A.!L.!REV.!925!(2001).!
       45
          !47!JURIMETRICS!J.!at!386!(2007).!
                                                                                             12!

!
         Frischmann! and! van! Schewick! acknowledge! the! current! “pressure! for! property!
    rights! evolution! so! that! network! owners! may!more! fully! internalize! externalities!and!
    appropriate! the! value! of! the! Internet.”46! ! However,! they! observe! some! clear!
    divergences!between!maximizing!the!private!gains!of!network!owners!and!maximizing!
    the!overall!social!gains!that!unfettered!Internet!access!can!generate.!!Following!Larry!
    Lessig!and!Yochai!Benkler’s!narrative!of!the!development!of!the!Internet,!they!argue!
    that! online! innovation! results! from! the! Internet’s! open! architecture,! which! allows!
    anyone!with!a!“better!idea”!to!supplant!dominant!players!(or!at!least!to!usurp!some!of!
    their!market!share!and!attention).47!!They!acknowledge!that!the!“end"to"end!principle!
    acts!as!a!limitation!on!the!property!rights!of!network!owners,”!but!insist!that!it!is!only!
    a! limitation! to! the! extent! that! “fair! use! operates! as! a! limitation! on! the! rights! of!
    copyright!owners.”48!!The!fair!use!analogy!is!felicitous;!as!Richard!Posner!has!argued,!
    an! absolute! bar! on! fair! uses! could! seriously! undermine! book! sales! by! reducing! the!
    level!of!uncensored!information!about!books.49!!Though!individual!copyright!holders!
    may!gain!a!great!deal!by,!say,!forbidding!quotes!from!their!books!that!may!be!treated!
    negatively,! the! book! industry! in! general! would! be! negatively! affected! by! the! lack! of!
    quality!information!about!its!products.!!!

       An! impressive! group! of! scholars! have! joined! Frischmann! &! van! Schewick! in!
    challenging! the! DOJ! and! FTC’s! economic! arguments! against! network! neutrality.50!!
    However,! influential! deregulationists! continue! to! insist! that! the! only! proper! role! for!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       46
          !Id.!at!384.!!Examples!of!this!pressure!are!evident!in!MICHAEL! HELLER,! THE! GRIDLOCK! ECONOMY!
       (2008).!
       47
          !Id.!at!387.!
       48
          !Id.!at!386.!
       49
          ! Ty,! Inc.! v.! Publ’ns! Int’l! Ltd.,! 292! F.3d! 512,! 517! (7th! Cir.! 2002)! (“Quite! apart! from! the!
       impairment!of!freedom!of!expression!that!would!result!from!giving!a!copyright!holder!control!
       over! public! criticism! of! his! work,! to! deem! such! quotation! an! infringement! would! greatly!
       reduce! the! credibility! of! book! reviews,! to! the! detriment! of! copyright! owners! as! a! group,!
       though! not! to! the! owners! of! copyright! on! the! worst! books.! Book! reviews! would! no! longer!
       serve! the! reading! public! as! a! useful! guide! to! which! books! to! buy.! Book! reviews! that! quote!
       from!(‘copy’)!the!books!being!reviewed!increase!the!demand!for!copyrighted!works;!to!deem!
       such!copying!infringement!would!therefore!be!perverse,!and!so!the!fair"use!doctrine!permits!
       such!copying.”);!see!also!Pasquale,!Copyright!in!an!Age!of!Information!Overload,!VAND.! L.! REV.!
       (2007)!(discussing!“captured!categorizers”).!!!
       50
          !See,!e.g.,!Nicholas!Economides,!“Net!Neutrality,”!Non"Discrimination!and!Digital!Distribution!
       of!Content!Through!the!Internet,!NET!Institute!Working!Paper!No.!07"03!(Mar.!2007)!available!
       at!http://ssrn.com/abstract=977096;!Spencer!Weber!Waller!&!Brett!M.!Frischmann,!Essential!
       Facilities,! Infrastructure,! and! Open! Access! (Nov.! 2,! 2006)! available! at!
       http://ssrn.com/abstract=942074;! Timothy! Wu,! Network! Neutrality,! Broadband!
       Discrimination,!2!J.! ON! TELECOMM.! &! HIGH! TECH.! L.!141!(2003);!Daniel!J.!Weitzner,!The!Neutral!
       Internet:! An! Information! Architecture! for! Open! Societies,! June! 19,! 2006,!
       http://dig.csail.mit.edu/2006/06/neutralnet.html;!Preserving!the!Essential!Internet,!CENTER!FOR!
       DEMOCRACY!&!TECH.,!June!20,!2006,!http://www.cdt.org/speech/20060620neutrality.pdf.!
                                                                13!

!
    the!Government!here!is!to!remedy!past!discriminatory!conduct!(an!antitrust!model),!
    rather!than!to!legislate!nondiscrimination!rules.51!!Many!economists!and!lawyers!have!
    translated! their! libertarian! animus! against! regulation! into! a! complex! language! of!
    efficiency"maximizing!economic!models!and!legal!presumptions!against!governmental!
    interventions.! ! They! have! little! interest! in! the! “changing! face! of! economics”! 52!!
    represented! by! pro"net"neutrality! legal! scholars,! and! have! ample! moves! within!
    traditional! economics! to! dismiss! whatever!concerns! the! latter! group! raises.53! ! In! the!
    tradition! of! Chris! Jay! Hoofnagle’s! critique! of! denialist! advocacy! techniques,54! I!
    characterize! these! moves! as! “disruptive! innovation,”! “capture,”! and! “wrong!
    metaphor”!cards.!!After!describing!each!move,!the!essay!responds!to!them!in!political!
    and!cultural!terms!that!become!available!once!we!realize!that!the!network!neutrality!
    struggle! is! about! far! more! than! economic! efficiency,! and! concerns! more! than! the!
    “physical!layer”!of!the!network.!

        The!“disruptive!innovation”!card!claims!that!the!worse!carriers!behave,!the!more!
    they!will!provoke!other!entities!to!invest!in!an!end"run!around!existing!wire!lines.!!This!
    approach! fuses! a! Marxian! immiseration! hypothesis! to! Schumpeter’s! theories! of!
    creative! destruction! and! Gilder’s! prediction! of! a! “telecosm”! capable! of! massively!
    increasing!worldwide!bandwidth.55!!Just!as!Marx!opposed!welfare!laws!because!he!felt!
    they!would!pacify!workers!who!would!revolt!at!below"subsistence!wages,!laissez"faire!
    theorists! argue! that! the! worse! the! carriers! act,! the! more! they! will! drive! abused!
    customers! to! flock! to! alternatives! devised! by! would"be! competitors.56! ! This! theory!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       51
          ! See! Alfred! Kahn,! Telecommunications:! The! Transition! from! Regulation! to! Antitrust,! 5! J.! ON!
       TELECOMM.!&!HIGH!TECH.!L.!159,!166!(2006).!Even!the!FCC!has!shied!away!from!developing!rules!
       for!network!neutrality!in!its!recent!enforcement!action.!!!
       52
          ! See,! e.g.,! DAVID! COLANDER,! RICHARD! P.! F.! HOLT! &! J.! BARKLEY! ROSSER,! JR.,! THE! CHANGING! FACE! OF!
       ECONOMICS!(U.!of!Mich.!Press!2004)!(evidencing!an!openness!in!economics!to!influences!from!
       evolutionary!biology,!computer!science,!psychology,!and!philosophy).!
       53
          !Id.!
       54
          !Chris!Jay!Hoofnagle,!Denialists’!Deck!of!Cards:!An!Illustrated!Taxonomy!of!Rhetoric!Used!to!
       Frustrate!                        Consumer!           Protection!     Efforts,!            available!          at!
       http://papers.ssrn.com/sol3/papers.cfm?abstract_id=962462! (last! visited! Aug.! 31,! 2008)!
       (“denialism! is! the! use! of! rhetorical! techniques! and! predictable! tactics! to! erect! barriers! to!
       debate!and!consideration!of!any!type!of!reform,!regardless!of!the!facts”).!!!
       55
          ! GEORGE! GILDER,! VIEW! FROM! THE! TELECOSM! 7! (Forbes! ASAP,! 1996)! (“fiberoptics! has! utterly!
       overthrown!the!previous!relationship!between!fast!computers!and!slow!wires.”).!
       56
          ! A! few! years! ago,! the! hope! du! jour! was! that! Google! would! buy! up! dark! fiber! to! set! up! a!
       telecommunications!alternative!to!cable!and!phone!companies.! Evan!Hansen,!Google!Wants!
       Dark! Fiber,! CNet,! Jan.! 17,! 2005,! available! at! http://news.cnet.com/Google"wants"dark"
       fiber/2100"1034_3"5537392.html! (discussing! the! “chance! that! the! company! is! laying! the!
       groundwork!to!jump!into!the!telecommunications!business.”).!!Google’s!strategy!now!appears!
       to!be!“joining,”!rather!than!“beating,”!the!carriers!who!serve!up!its!applications!and!content.!!
       Frank! Pasquale,! Internet! Nondiscrimination! Principles:! Commercial! Ethics! for! Carriers! and!
       Search! Engines,! 17! U.! CHI.! LEG.! F.! 1,! 21"22! (2008)! (“The! old! narrative! of! ‘carrier! vs.! search!
                                                                      14!

!
       echoes!economist!Joseph!Schumpeter’s!classic!theory!of!“creative!destruction,”!which!
       has! underwritten! contemporary! models! of! “innovation! markets”! as! inherently!
       unstable!and!subject!to!rapid!change!due!to!the!extraordinary!profits!that!will!accrue!
       to!a!“disruptive!innovator”!who!can!capture!the!market.57!

           Even! if! the! deus! ex! machina! of! profit"driven! disruptive! innovation! fails,! network!
       neutrality’s! opponents! present! proponents! with! the! “capture”! card:! the! argument!
       that! the! FCC’s! long! history! of! capture! by! industries! it! regulates! casts! doubt! on! any!
       proposals! giving! it! more! authority! to! regulate! the! internet.58! ! Although! some! would!
       permit! the! FTC! to! perform! minimal! consumer"protection"oriented! monitoring,! most!
       are! suspicious! of! any! FTC! efforts! to! impose! hard"and"fast! rules.! ! Assuming! that!
       government! creates! more! problems! that! it! solves,! they! discount! any! regulatory!
       scheme!as!potentially!falling!prey!to!ossification,!manipulation,!and!corruption.!

            Finally,! if! both! the! “disruptive! innovation”! and! “capture”! cards! fail,! the! “wrong!
       metaphor”!card!mitigates!even!the!most!sophisticated!economic!defenses!of!network!
       neutrality.!!Although!Ted!Stevens!was!roundly!mocked!for!claiming!that!the!internet!is!
       “not! a! big! truck,”! it! is! difficult! to! invoke! a! metaphor! that! can! capture! the! rapidly!
       changing! technologies! deployed! by! carriers.! ! Network! neutrality! advocates! invoke!
       railroads,! electric! grids,! and! highways! to! describe! the! Internet,! and! insist! that!
       economic! theory! valid! in! those! realms! can! be! applied! to! carriers.! ! By! contrast,!
       opponents!contend!either!that!rival!economic!theories!favor!the!deregulation!of!all!of!
       these! transportation! platforms,! or! that! none! of! these! platforms! involved! spam,!




                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       engine’! may! give! way! to! new! forms! of! cooperation! that! magnify! the! effects! of! bias! by! the!
       collaborating!entities.”).!!!!!!
       57
          ! Tim! Wu,! Keeping! the! Internet! Neutral?,! LEGAL! AFFAIRS,! May! 1,! 2006,! available! at!
       http://www.legalaffairs.org/webexclusive/debateclub_net"neutrality0506.msp! (last! visited!
       Aug.! 29,! 2008)! (“Christopher! [Yoo],! rather! like! the! later! Schumpeter,! believes! that! large!
       firms—in!this!case,!network!operators—drive!telecommunications!innovation.”).!
       58
          ! Timothy! B.! Lee,! Entangling! the! Web,! N.Y.! TIMES,! Aug.! 3,! 2006,! available! at!
       http://www.nytimes.com/2006/08/03/opinion/03lee.html?scp=1&sq=%22timothy%20b.%20l
       ee%22%20capture&st=cse! (“It’s! tempting! to! believe! that! government! regulation! of! the!
       Internet! would! be! more! consumer"friendly;! history! and! economics! suggest! otherwise.! The!
       reason!is!simple:!a!regulated!industry!has!a!far!larger!stake!in!regulatory!decisions!than!any!
       other! group! in! society.! As! a! result,! regulated! companies! spend! lavishly! on! lobbyists! and!
       lawyers! and,! over! time,! turn! the! regulatory! process! to! their! advantage.! ! Economists! have!
       dubbed! this! process! “regulatory! capture,”! and! they! can! point! to! plenty! of! examples.”).! ! But!
       see!Frank!Pasquale,!The!Price!of!Capture!Arguments,!Posting!to!CONCURRING! OPINIONS,!Sept.!7,!
       2007! (“If! you're! going! to! make! a! ‘capture’! argument,! you! can! only! do! so! in! good! faith! if! a)!
       you're! in! favor! of! some! basic! constraints! to! stop! capture! or! b)! you're! so! thorough"goingly!
       libertarian!you'd!also!privatize!just!about!everything!else,!including!the!military.”).!!!
                                                                                             15!

!
    viruses,!“bandwidth!hogs,”!or!contraband!content!now!circulating!on!the!web.59!!They!
    also! argue! that! the! cross"subsidization! now! practiced! on! airlines! and! by! the! postal!
    service! should! be! part! of! network! operators’! business! models.! ! If! content! and!
    application! providers! are! willing! to! pay! for! priority! access! to! consumers,! should!
    regulators! deny! them! the! opportunity! to! shift! some! of! the! burden! of! paying! for!
    broadband!away!from!end"users!and!toward!those!willing!to!pay!to!reach!them?!
        !
        Sheerly! economic! methods! of! analysis! may! not! answer! that! question! in! a!
    normatively! satisfying! manner.60! ! The! disruptive! innovation,! capture,! and! “wrong!
    metaphor”! cards! show! the! contested! nature! of! economic! analysis! on! the! network!
    neutrality!question.!!Fortunately,!these!objections!throw!into!high!relief!other!crucial!
    concerns!at!stake!in!the!face!of!broadband!discrimination,!including!cultural,!political,!
    and! privacy! interests.! ! As! Section! B! below! demonstrates,! transportation! regulation!
    may!well!constitute!the!“wrong!metaphor”!for!modeling!network!management—the!
    cultural! consequences! of! the! latter! are! far! more! consequential! than! those! of! the!
    latter.! ! Comparative! analysis! of! US! and! other! nations’! broadband! policy! undermines!
    the! capture! and! disruptive! innovation! arguments! by! demonstrating! that! regulators!
    can! be! insulated! from! regulated! entities! to! prevent! influence.! ! When! that! happens,!
    regulation!can!spark!innovation!rather!than!strangle!it.!!!

         B.!From!a!Maximizing!to!an!Optimizing!Paradigm!

        “Innovation”! is! a! powerful! slogan,! but! the! real! question! in! the! net! neutrality!
    debate!concerns!the!kind!of!innovation!we!want!as!a!society.61!!That!question!cannot!
    be! answered! with! crude! quantitative! metrics! of! “more”! and! “cheaper.”! ! Ordinary!
    measures!of!consumer!welfare,!like!traditional!measures!of!national!income,62!!offer!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       59
          !Scott!Cleland,!Has!Tim!Wu!Lost!His!Credibility?,!PRECURSOR! BLOG,!Jan.!16,!2008,!available!at!
       http://precursorblog.com/node/631!(arguing!that!net!neutrality!proposal!will!hamper!carriers’!
       ability!to!fight!malware,!spam,!and!bad!actors).!!!
       60
          ! Reza! Dibadj,! Beyond! Facile! Assumptions! and! Radical! Assertions:! A! Case! for! Critical! Legal!
       Economics,! 2003! UTAH! L.! REV.! 1155,! 1161! (2003)! (“[T]hree! of! the! most! basic! assumptions! to!
       the! popular! law! &! economics! enterprise""that! people! are! rational,! that! ability! to! pay!
       determines!value,!and!that!the!common!law!is!efficient""while! couched!in! the! metaphors!of!
       science,!remain!unsubstantiated.”).!!!
       61
          !See,!e.g.,!Gaia!Bernstein,!In!the!Shadow!of!Innovation!(documenting!increase!in!the!rhetoric!
       of!innovation!maximization!in!intellectual!property!cases).!!
       62
          !There!is!growing!doubt!that!they!have!much!meaning!generally.!!See!Louis!Uchitelle,!Hey!Big!
       Number,!Make!Room!for!the!Rest!of!Us,!N.Y.!TIMES,!Aug.!30,!2008!(stating!that!GDP!“measures!
       wealth!just!fine,!but!as!a!stand"in!gauge!for!the!nation’s!overall!well"being,!this!supernumber!
       is! less! than! perfect.! Or,! as! Robert! F.! Kennedy! put! it! 40! years! ago,! the! G.D.P.! ‘measures!
       everything,!in!short,!except!that!which!makes!life!worthwhile.’!.!.!.!.!‘We!may!be!in!the!early!
       stages!in!the!United!States!of!recognizing!that!the!gross!domestic!product!is!very!misleading!
       and!something!must!be!done!to!get!better!measures!of!well"being,’!said!Amartya!Sen,!a!Nobel!
       laureate!in!economics!at!Harvard.”).!!!
                                                             16!

!
    radically!incomplete!accounts!of!the!normative!stakes!involved!in!internet!regulation.!!
    Most! commentators! appear! to! assume! that! the! desirability! of! internet"access!
    arrangements! fundamentally! must! be! measured! according! to! an! access"maximizing!
    and! cost"minimizing! metric.! ! But! important! questions! about! the! nature! of! internet!
    access!need!to!take!center!stage!as!well.!!!!

        In!2000,!there!were!at!least!two!billion!web!pages!on!line.63!!Most!search!engines!
    now!do!not!even!attempt!(or!at!least!do!not!publicize!their!attempts)!to!keep!track!of!
    how! many! pages! they! index;! Google! claimed! to! index! eight! billion! before! it! stopped!
    publicizing!the!number.64!!Of!course,!many!technophiles!see!great!opportunity!in!this!
    proliferation! of! information.! ! After! the! rise! of! several! “one"to"many”! media! of!
    broadcasting,!the!internet!finally!appears!to!be!a!“many"to"many”!technology!capable!
    of!breaking!past!hierarchical!patterns!of!information!dissemination.65!!Yet!a!persisting!
    Babel! of! unorganized! and! disconnected! web! resources! leaves! web! publishers!
    vulnerable! to! the! same! patterns! of! concentration,! homogenization,! and! banalization!
    that!have!afflicted!the!mass!media.66!
        !
        Few!aspire!to!be!a!vox!clamantis!in!a!digital!desert.!!An!unfortunate!byproduct!of!
    the! resulting! struggle! for! recognition! in! an! overcrowded! media! environment! is! a!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       63
          !THOMAS!H.!DAVENPORT!AND!JOHN!C.!BECK,!THE!ATTENTION!ECONOMY!118!(2001).!!!
       64
          ! Google! claimed! to! index! eight! billion! before! it! stopped! publicizing! the! number.! ! Danny!
       Sullivan,! End! Of! Size! Wars?! Google! Says! Most! Comprehensive! But! Drops! Home! Page! Count,!
       SEARCH!                       ENGINE!                 WATCH,!   Sept.!    27,!          2005,!           at!
       http://searchenginewatch.com/searchday/article.php/3551586! (discussing! why! “why! counts!
       alone!can't!be!taken!as!proof!of!comprehensiveness”).!!!
       65
          ! Compare! ITHIEL! DE! LA! SOLA! POOL,! TECHNOLOGIES! OF! FREEDOM! (1984)! (discussing! radio! and!
       television)!with!Dan!Bricklin,!The!Cornucopia!of!the!Commons,!in!PEER"TO"PEER:! HARNESSING! THE!
       POWER! OF! DISRUPTIVE! TECHNOLOGIES! 15! (Andy!Oram,!ed.,!2001)! (discussing!potential!of!peer"to"
       peer! communication! technologies).! ! ! On! the! failures! of! past! media! to! live! up! to! their!
       egalitarian! promise,! see! ROBERT! W.! MCCHESNEY,! TELECOMMUNICATIONS,! MASS! MEDIA! AND!
       DEMOCRACY!35!(1993)!(“Fewer!than!ten!transnational!media!conglomerates!dominate!much!of!
       our!media;!fewer!than!two!dozen!account!for!the!overwhelming!majority!of!our!newspapers,!
       magazines,!films,!television,!radio,!and!books.!With!every!aspect!of!our!media!culture!now!fair!
       game!for!commercial!exploitation,!we!can!look!forward!to!the!full"scale!commercialization!of!
       sports,! arts,! and! education,! the! disappearance! of! notions! of! public! service! from! public!
       discourse,!and!the!degeneration!of!journalism,!political!coverage,!and!children's!programming!
       under!commercial!pressure.”).!
       66
          ! SVEN! BIRKERTS,! THE! GUTENBERG! ELEGIES:! THE! FATE! OF! READING! IN! AN! ELECTRONIC! AGE! 72! (1994)!
       (“Awed!and!intimidated!by!the!availability!of!texts,! faced!with!the!all!but!impossible!task! of!
       discriminating! among! them,! the! reader! tends! to! move! across! surfaces,! skimming,! hastening!
       from! one! site! to! the! next! without! allowing! the! words! to! resonate! inwardly.”).! ! For! a! good!
       review!of!the!literature,!see!Frank!Pasquale,!Copyright!in!an!Era!of!Information!Overload;!Guy!
       Pessach,! Copyright! Law! as! a! Silencing! Restriction! on! Noninfringing! Materials:! Unveiling! the!
       Scope!of!Copyright's!Diversity!Externalities,!76!S.!CAL.!L.!REV.!1067,!1089"1091!(2003).!
                                                                     17!

!
    continual! coarsening! of! public! life.67! ! Appeals! for! attention! become! louder,! simpler,!
    more! controversial,! and! more! laced! with! innuendo! (and! worse).68! ! Not! merely! a!
    stultifying! sameness,! but! also! a! kaleidoscopic! variety,! can! become! overwhelming,!
    especially! “when! it! has! nothing! to! say—when! it! inflicts! on! us! noise,! distraction! and!
    irrelevance,!making!it!harder!to!find!the!meaning!we!seek.”69!!Information!overload,!in!
    turn,!leads!to!the!“payola!problem”—efforts!by!content!producers!to!fast"track!their!
    work! to! consumers! by! paying! middlemen! for! privileged! access! (or! blocking! or!
    degrading!access!to!competitors).70!!Economistic!analyses!tend!to!ignore!the!cultural!
    consequences!of!such!power!plays.71!

       Consider!the!following!economic!argument!for!network!neutrality!from!Hahn!and!
    Wallsten:!!

                  [N]et! neutrality! advocates! generally! abhor! the! idea! of! Internet! “fast!
                  lanes”!in!which!content!providers!could!ensure!priority!delivery!of!their!
                  content! if! they! were! willing! to! pay! for! it.! Yet,! we! know! a! demand! for!
                  this! general! type! of! service! exists.! This! is! one! reason! people! and!
                  businesses!are!willing!to!pay!more!for!faster!Internet!connections!now.!!

                  We!find!it!ironic!that!the!net!neutrality!advocates!are!willing!to!say!that!
                  price!discrimination!on!the!basis!of!general!speed!and!convenience!of!
                  the! Internet! connection! is! acceptable;! but! discrimination! that! would!
                  guarantee!a!site!will!be!available!at!a!certain!speed!and!time!is!not.!The!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       67
          !From!the!shouting!matches!of!the!McLaughlin!Group!to!the!urbane!exchanges!on!the!pages!
       of! Harper's,! pundits! on! the! left! and! the! right! treat! the! degeneration! of! American! political!
       discourse!as!an!isolated!phenomenon.!Yet!this!degradation!is!nothing!more!than!an!extension!
       of!wider!cultural!trends!long!apparent!in!popular!entertainment.!!See!KATHLEEN! HALL! JAMIESON,!
       DIRTY! POLITICS:! DECEPTION,! DISTRACTION,! AND! DEMOCRACY! (1992);! Benjamin! Barber,! Consumed;!
       Collins!and!Skover,!The!Death!of!Discourse.!
       68
          !DAVID! SHENK,! DATA! SMOG,!supra!note!4,!at!102!(“People!have!discovered!that,!in!order!to!get!
       their!messages!across,!they!increasingly!must!wrap!them!in!provocative!or!titillating!packages.!
       .!.!.!Society!.!.!.!is!becoming!inexorably!more!crass.”).!!
       69
          ! ORRIN! KLAPP,! OVERLOAD!AND! BOREDOM:! ESSAYS!ON!THE! QUALITY!OF! LIFE!IN!THE! INFORMATION! SOCIETY!
       83!(1986).!
       70
          ! Ellen! Goodman’s! work! has! called! attention! to! the! broader! issue! of! “stealth! marketing.”!!
       Ellen! P.! Goodman,! Stealth! Marketing! and! Editorial! Integrity,! 85! Tex! L! Rev! 83,! 89! (2006)!
       (describing!branded!marketing!as!a!business!embedding!promotional!material!into!media!that!
       otherwise!appears!to!be!independent!content);!But!see!Goldman,!Response!to!Goodman,!Tex.!
       L.!Rev.!(on!the!“stealth!risks!of!regulating!stealth!marketing”).!!!
       71
          !See,!e.g.,!Frank!Pasquale,!The!Limits!of!Law!&!Economics!in!Intellectual!Property:!The!Case!of!
       Digital! Music,! at! http://www.concurringopinions.com/archives/2007/02/drm_dreams.html;!
       Pasquale,!                            The!            Shamanism!    in!        Economism,!              at!
       http://www.concurringopinions.com/archives/2007/03/the_shamanism_i.html;!                      Pasquale,!
       Debate!as!Boundary!Maintenance,!at!http://madisonian.net/2006/08/14/debate"as"boundary"
       maintenance/.!!!
                                                                       18!

!
                   latter!is!simply!a!version!of!peak"load!pricing!that!is!used!to!help!solve!a!
                   host!of!resource!allocation!problems!ranging!from!dining!at!restaurants!
                   (early"bird!specials)!to!commuting!(higher!rush"hour!subway!prices)!to!
                   generating!electricity!(lower!prices!in!the!middle!of!the!night).72!

    Mark! Fowler's! characterization! of! TV! as! “just! a! toaster! with! pictures”! provoked! an!
    uproar.73!Yet!Hahn!and!Wallsten!would!have!us!regulate!the!internet,!a!cultural!force!
    poised! to! be! far! more! influential! than! television,! by! the! same! principles! that! govern!
    transport!networks!and!greasy!spoons.!!As!vertical!integration!of!conduits!and!content!
    continues!apace,!the!analogies!between!cultural!and!other!infrastructures!promise!to!
    become!more!strained.!

         These! homely! examples! also! obscure! high! levels! of! media! concentration.! ! Guy!
    Pessach!has!already!convincingly!documented!how!endogenously!tastes!arise!in!film!
    and! music.! 74! Once! we! begin! to! critically! examine! the! origins! of! our! tastes,! we! may!
    want! to! avoid! giving! already"dominant! entities! even! more! opportunities! to! leverage!
    existing!networks!of!distribution!into!an!ever!more!powerful!hold!over!our!collective!
    imagination.! ! Churches,! schools,! museums,! indie! musicians! all! deserve! as! much! of! a!
    shot!at!our!eyeballs!as!do!iTunes,!Disney,!or!Comcast's!cable!stations.75!!Network!bias!
    toward! wealthy! entities! portends! ever! more! pervasive! commercialization! of! cultural!
    life.!!We!are!already!inundated!with!messages!from!well"heeled!corporations!in!daily!
    life.! 76! ! Policies! that! reinforce! such! patterns! on! the! internet! are! suspect.77! ! A!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       72
          !Robert!W.!Hahn!&!Scott!Wallsten,!The!Economics!of!Net!Neutrality,!THE! ECONOMISTS’! VOICE,!
       Vol.!3,!Iss.!6,!Article!8!(2006)!available!at,!http://www.bepress.com/ev/vol3/iss6/art8.!
       73
          ! Brent! Staples,! Just! a! Toaster! With! Pictures,! N.Y.! TIMES,! Feb.! 8! 1987,! at! section! 7,! page! 7,!
       available!                                                                                                   at!
       http://query.nytimes.com/gst/fullpage.html?res=9B0DE1D7113BF93BA35751C0A961948260
       &pagewanted=2!
       74
          !Guy!Pessach,!Copyright!Law!as!a!Silencing!Restriction!on!Noninfringing!Materials:!Unveiling!
       the!Scope!of!Copyright's!Diversity!Externalities,!76!S.! CAL.! L.! REV.!1067!(2003);!see!also!RICHARD!
       LANHAM,! THE! ECONOMICS! OF! ATTENTION! 9! (2006)! (calling! for! an! “economics! of! attention”! to!
       supplement! “information! economics”! because! attention! is! now! far! more! scarce! than!
       information.)!
       75
          ! Andrea! L.! Foster,! The! Fight! for! a! Toll"Free! Internet,! THE! CHRONICLE! OF! HIGHER! EDUCATION,!
       available!at!http://chronicle.com/weekly/v52/i35/35a03901.htm.!!!
       76
          ! Frank! Pasquale,! Comments! on! Eric! Goldman’s! Coasean! Analysis! of! Marketing,!
       http://www.theconglomerate.org/2006/07/frank_pasquale_.html! (Jul.! 5,! 2006)! (“the! more!
       information!marketers!have!about!us,!the!less!unwanted!material!we!will!receive.!!But!is!there!
       a!larger,!more!corrosive!effect!from!marketing?!!What!if!I!gradually!start!spending!more!due!
       to!ultra"targeted!marketing?!!Imagine!some!ingenious!marketing!algorithm!taps!into!my!inner!
       hedonist,! gradually! cultivating! my! inchoate! preferences! for! the! "good! life"! into! a! florid!
       spending!spree!for!a!Bose!stereo!system,!an!Italian!leather!couch,!and!a!Jaguar.”).!!Marketized!
       culture! appears! to! have! played! a! major! role! in! the! United! States’s! record! low! saving! levels.!!
       Gretchen!Morgenson,!Given!a!Shovel,!Americans!Dig!Deeper!in!Debt,!N.Y.! TIMES,!July!20,!2008!
                                                               19!

!
       marketing"driven! model! of! content! provision! and! information! management! may!
       permissibly! embroider! the! sides! of! the! web! pages,! but! should! not! affect! which! web!
       pages!get!to!us!most!quickly!(or!are!most!prominent!in!organic!search!engine!results).!!
       If!it!does,!the!principles!behind!payola!laws!dictate!its!disclosure.78!

           Policymakers! also! need! to! start! access! to! the! internet! (and! to! such! essential!
       facilities! as! Google’s! Book! Search)79! as! a! basic! necessity! for! all! individuals.! ! Local!
       hearings!on!the!issue!reflect!these!concerns.!!For!example,!a!spokesman!from!Older!
       Adults! Technology! Service! told! the! New! York! City! Broadband! Advisory! Commission!
       that!the!internet!was!a!crucial!tool!in!overcoming!social!isolation!for!the!elderly:!!
           !
                     Older! adults! can! use! computers! to! overcome! social! isolation,!
                     connect!to!health!information,!and!access!government!services,!but!
                     fewer!than!one!in!four!senior!citizens!is!online!today.!As!a!result,!one!
                     of!the!most!important!tools!for!improving!the!quality!of!life!of!aging!
                     New!Yorkers!is!unavailable!to!the!majority!of!households.!.!.!.80!


                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       (“Eliminating! negative! feelings! about! indebtedness! was! the! idea! behind! Mastercard’s!
       “Priceless”!campaign,!the!work!of!McCann"Erickson!Worldwide!Advertising,!which!came!out!in!
       1997.!.!.!.!As!the!profits!in!this!indebtedness!grew,!financial!companies!moved!aggressively!to!
       protect!them,!spending!millions!of!dollars!to!lobby!against!any!moves!lawmakers!might!take!
       to!rein!in!questionable!lending.”).!!!!
       77
          ! See,! e.g.,! Stewart! Ewen,! All"Consuming! Images;! Louise! Story,! Home! Equity! Frenzy! was! a!
       Bank!Ad!Dream!Come!True,!N.Y.!Times!(“Many!experts!say!the!ads!encouraged!Americans!to!
       go!deeper!into!debt.!!!“It’s!very!difficult!for!one!advertiser!to!come!to!you!and!change!your!
       perspective,”!said!Sendhil!Mullainathan,!an!economist!at!Harvard!who!has!studied!persuasion!
       in! financial! advertising.! “But! as! it! becomes! socially! acceptable! for! everyone! to! accumulate!
       debt,!everyone!does.”).!!!
       78
          ! Frank! Pasquale,! Internet! Nondiscrimination! Principles:! Commercial! Ethics! for! Carriers! and!
       Search!Engines,!2008!U.! CHI.! LEG.! F.!266!(2008)!(“The!deception!argument!as!applied!to!search!
       engines!is!a!variant!of!the!more!general!criticism!of!stealth!marketing!in!the!media.!Users,!the!
       argument!goes,!are!misled!to!believe!that!search!results!are!based!on!relevancy!alone,!when!
       in!fact!they!are!based!on!other!grounds!.”).!
       79
          ! For! a! compelling! critical! perspective! on! Google! Book! Search,! see! James! Grimmelmann,!
       Principles! and! Recommendations! for! the! Google! Book! Search! Settlement,! at!
       http://laboratorium.net/archive/2008/11/08/principles_and_recommendations_for_the_goo
       gle_book! (“the! settlement! has! a! most"favored"nations! clause! in! Google’s! favor.! Individual!
       copyright!owners!can!strike!whatever!side!deals!they!want,!but!the!Registry!can’t!give!anyone!
       else! better! ‘economic! or! other! terms’! than! Google! gets! for! the! first! ten! years.! Notice,! for!
       example,!that!this!now!precludes!the!Registry!from!offering!a!better!revenue"sharing!deal!to!
       Yahoo!!even!if!the!Registry!thinks!this!better!deal!is!necessary!to!turn!Yahoo!!into!a!serious!
       player!in!the!market.”).!!!
       80
          ! George! M.! Lee,! Thomas! Kamber’s! Policy! Brief:! Improving! Access! to! Affordable! High"Speed!
       Internet! Service! for! Older! Adults,! May! 22,! 2007! Brooklyn! Hearing! of! the! New! York! City!
                                                                                             20!

!
           !
       Citizen! journalists! also! can! provide! a! much"needed! alternative! to! mainstream! media!
       coverage,! but! only! to! the! extent! that! their! offerings! do! not! face! unfair!
       discrimination.81! ! Katherine! Strandburg! has! highlighted! the! critical! importance! of!
       secure!media!access!to!associational!life!in!the!twenty"first!century.82!!Net!neutrality!
       rules! should! assure! that! no! media! company! can! stymie! or! deflect! such! self"
       organization—and!that!certain!groups!are!not!unduly!advantaged!over!others!(in!their!
       capacity! to! communicate! and! organize)! due! to! the! structure! of! the! network! itself.83!!
       Given! the! possible! paucity! of! traditional! communications! systems! in! the! midst! of!
       disasters,!internet!access!can!be!a!life"or"death!matter!for!those!affected.84!
                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       Broadband! Advisory! Committee,! http://nycbroadband.blogspot.com/2007/06/thomas"
       kamber"oats"founder"and"chief.html!(last!visited!June!13,!2007!5:48!EST).!
       81
          !Carlos!Pareja,!Testimony!on!Media!Justice,!May!22,!2007!Brooklyn!Hearing!of!the!New!York!
       City! Broadband! Advisory! Committee,! http://nycbroadband.blogspot.com/2007/06/carlos"
       pareja"education"program"manager.html! (June! 13,! 2007! 5:42! EST)! (“The! fight! for! broadband!
       must!be!connected!to!the!media!justice!movement.!As!an!access!center!charged!with!meeting!
       the! media! needs! of! the! Brooklyn! community,! someday! we! may! be! loaning! out! WiFi! cell!
       phones! with! video"capturing! capabilities! to! our! community! producers! to! document! their!
       neighborhoods.!And!then!they’ll!upload!the!content!at!some!public!hot!spot!to!a!BCAT!server,!
       so!they!can!continue!to!speak!to!their!community.”).!!
       82
          ! Katherine! J.! Strandburg,! Freedom! of! Association! in! a! Networked! World:! First! Amendment!
       Regulation!of!Relational!Surveillance,!49!B.C.! L.! REV.!741,!745!(2008)!(“discussing!how!“more!
       and! more! political! and! civic! work! in! society! is! performed! not! by! traditionally! organized,!
       relatively! long"lived,! face"to"face! organizations,! but! by! decentralized,! often! transient,!
       networks!of!individuals!associating!only!or!primarily!electronically!and!with!policies!and!goals!
       defined! synergistically! with! the! formation! of! the! emergent! association! itself.”).! ! Paul! Ohm’s!
       description! of! the! wiretapping! laws! as! a! form! of! net! neutrality! complements! Strandburg’s!
       emphases! here.! ! See! also! Rosio! Alvarez! &! Juana! Maria!Rodriguez,! Discursive! Deployments:!
       Mobilizing!Support!for!Municipal!and!Community!Wireless!Networks!in!the!U.S.,!Proceedings!
       of! the! 41st! Annual! Hawaii! International! Conference! on! System! Sciences,! available! at!
       http://ieeexplore.ieee.org/xpl/freeabs_all.jsp?arnumber! =4438964! (Jan.! 2008)! (exploring!
       “how! local! governments! discursively! deploy! the! language! of! social! movements! to! create! a!
       shared!understanding!of!the!networking!needs!of!communities.”).!!!
       83
          ! Steven! Masur,! Testimony! on! Improving! Access! to! Affordable! High"Speed! Internet! Service,!
       Brooklyn! Hearing! of! the! New! York! City! Broadband! Advisory! Committee,! May! 22,! 2007,!
       available! at! http://nycbroadband.blogspot.com/2007/06/steven"masur"masurlaw"lawyer"for"
       start.htmlhtml!(last!visited!June!13,!2007!5:24!EST)!(“Should!access!to!the!internet!be!limited!
       to!rich!people?!Is!it!only!rich!people!who!have!good!ideas?!Why!would!we!want!to!perpetuate!
       a!situation!in!which!only!rich!people!have!access!to!a!universal!library!of!information!on!any!
       topic!and!the!ability!to!communicate!instantaneously?”).!!!
       84
          !Antwuan!Wallace,!The!Digital!Divide,! Testimony!at!Brooklyn!Hearing!of!the!New!York!City!
       Broadband!                    Advisory!                 Committee,!                     May!              22,!            2007,!              available!                at!
       http://nycbroadband.blogspot.com/2007/06/antwuan"wallace"ph.html!(posted!June!13,!2007!
       5:29! EST)! (“Hurricane! Katrina! and! its! aftermath! evidence! how! telecommunication! policy! is!
       perhaps!the!new!civil!rights!legislation!determining!whether!working!poor!communities!are!to!
                                                                                             21!

!
           !
           Social!justice!concerns!demand!attention!to!the!nature!of!the!online!public!sphere!
       that! communications! policy! produces.85! ! Mere! maximization! of! content! available!
       online! (or! satisfaction! of! preferences! revealed! via! the! amount! paid! for! it)! is! not! a!
       summum! bonum! that! either! side! of! the! network! neutrality! debate! should! be!
       presuming.86!!If!broadband!providers!can!profit!from!content!partnerships,!they!may!
       be!able!to!sell!more!access!for!less!money.!!This!apparent!economic!win"win!occludes!
       the!types!of!stealth!prioritization!or!direct!manipulation!of!content!that!drive!such!a!
       business!model.!!I!have!discussed!this!problem!of!stealth!marketing!extensively!in!the!
       context! of! search! engines,! and! it! applies! a! fortiori! to! internet! service! providers! and!
       carriers.87! ! As! more! content! migrates! online,! and! cloud! computing! displaces! the!
       desktop,88! the! stakes! are! raised! in! terms! of! possible! distortions! of! our! information!
       environment.!

           Some!leading!voices!on!the!network!neutrality!issue!argue!that!such!prioritization!
       should!not!be!proscribed!outright,!but!merely!disclosed!so!that!consumers!can!make!
       their!own!choices.89!!To!the!extent!consumer!welfare!animates!our!policies,!it!is!very!

                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       be!materially!misrepresented!or!altogether!disappeared!from!policy!debates!about!economic!
       development,! electoral! politics! and! civic! participation! in! the! digital! age.! .! .! .! [R]ace,! class,!
       gender,!poverty!and!geographic!location!frame!the!US!‘digital!divide’!and!robustly!suggest!the!
       need!for!direct!action!from!policymakers!and!planners.”).!!
       85
          !Anthony!Varona,!Toward!a!Broadband!Public!Interest!Standard,!ADMIN.!L.!REV.!(2008).!
       86
          !Frank!Pasquale,!Copyright!Summum!Bonum:!Innovation!or!Democratic!Culture?,!Posting!to!
       MADISONIAN! WEBLOG,! July! 24,! 2006,! available! at! http://madisonian.net/2006/07/24/ip"
       summum"bonum"innovation"or"democratic"culture/! (“the! stronger! objection! to! an! oligopoly!
       in!the!music!industry!is!not!that!it!stifles!innovation,!but!rather!that!something!as!important!to!
       our!cultural!identity!as!(the!vast!bulk!of)!music!recording!should!not!be!left!to!just!four!major!
       multinationals.”).!!!
       87
          !Frank!Pasquale,!Rankings,!Reductionism,!and!Responsibility,!54!CLEV!ST!L!REV!115,!130!(2006)!
       (prepared! for! Symposium! in! Honor! of! Margaret! Jane! Radin)! (proposing! legal! remedies! for!
       those! allegedly! harmed! by! search! engines);! Frank! Pasquale,! Asterisk! Revisited:! Debating! a!
       Right! to! Reply! on! Search! Results,! 3! J! BUS! &! TECH! L! 61,! 63! (2008);! Frank! Pasquale,! Internet!
       Nondiscrimination!Principles:!Commercial!Ethics!for!Carriers!and!Search!Engines,!2008!U.! CHI.!
       LEG.! F.!266!(2008)!(“The!deception!argument!as!applied!to!search!engines!is!a!variant!of!the!
       more!general!criticism!of!stealth!marketing!in!the!media.!Users,!the!argument!goes,!are!misled!
       to! believe! that! search! results! are! based! on! relevancy! alone,! when! in! fact! they! are! based! on!
       other!grounds!.”).!!!!
       88
          !For!a!good!description!of!the!migration!of!data!to!the!cloud,!see!Randal!Picker,!Competition!
       and!             Privacy!               in!           Web!              2.0!            and!             the!            Cloud,!              available!                at!
       http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1151985!(last!visited!Aug.!28,!2008).!!!
       89
          !Philip!J.!Weiser,!The!Next!Frontier!for!Network!Neutrality,!60!ADMIN.! L.! REV.!273,!298"99!(“In!
       providing! a! framework! or! set! of! principles! for! broadband! terms! of! service,! the! FTC! could!
       follow! the! approach! it! has! used! in! other! contexts,! such! as! when! it! issued! online! behavioral!
       advertising!privacy!principles!to!facilitate!both!more!effective!consumer!vigilance!as!well!as!a!
                                                                                             22!

!
       hard!to!measure!how!much!consumers!would!be!willing!to!pay!for!unbiased!access!to!
       content,! so! this! disclosure! strategy! may! seem! to! offer! them! a! chance! to! choose.!!
       However,!given!the!broadband!duopoly!prevailing!for!most!internet!users,!are!there!
       really!likely!to!be!that!many!choices?!!More!fundamentally,!are!consumers!willing!to!
       study,! or! even! capable! of! understanding,! the! fine! points! of! prioritization! policies?!!
       Despite!the!optimism!of!advocates!of!behavioral!economics"driven!disclosure!regimes,!
       the!cognitive!capacities!and!time!of!average!consumers!will!inevitably!be!taxed!by!the!
       complex! types! of! manipulation! available! to! network! operators.90! ! Behavioral!
       economists’!focus!on!disclosure!and!“libertarian!paternalism”91!in!particular!areas!of!
       life! tends! to! ignore! the! possibility! that! such! rights! to! choose! can! become!
       overwhelming!when!considered!as!a!whole.92!!Consumers!willing!to!read!the!fine!print!
       of! their! cable! bill! may! become! weary! by! the! time! they! have! to! scrutinize! bank!
       statements,!credit!card!and!cell!phone!bills,!and!insurance!contracts.93!

           The! questions! raised! by! network! neutrality! should! not! necessarily! be! issues! of!
       maximization—what! types! of! rules! will! allow! the! most! content! to! flow! online! at! the!
       cheapest!price—but!rather!of!optimization—how!to!assure!the!ideal!environment!for!
       self"expression,! community! formation,! entertainment,! and! all! the! other! cultural! and!
       political! functions! served! by! online! applications! and! services.! ! Economic! analysis,!
       alone,!cannot!provide!a!fair"minded!and!richly!grained!assessment!of!these!objectives.!

       III.!From!Economic!to!Cultural,!Political,!and!Privacy!Concerns!Raised!by!New!Smart!
       Networks!
            !
            Given!the!potentially!interminable!economic!debate!over!the!likely!consequences!
       of! network!neutrality! regulation,! legal! scholars! would! be!well"advised! to! take!a! step!
       back! and! question! whether! that! debate! is! even! capable! of! resolution.94! ! In! her!
                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       program!of!self"regulation.”).!!Weiser!believes!that!modest!regulatory!steps!toward!increasing!
       consumer!awareness!of!network!management!should!supplant!the!current!debate!on!network!
       neutrality,!which!he!characterizes!as!unduly!politicized.!!Id.,!at!276.!
       90
          !Barry!Schwartz;!Amitai!Etzioni.!
       91
          !Cass!Sunstein!and!Richard!Thaler,!Libertarian!Paternalism!is!Not!an!Oxymoron,!70!U.! CHI.! L.!
       REV.! 1159,! 1162! (2003)! (disclosure! and! other! forms! of! “[l]ibertarian! paternalism! [are]! .! .! .!
       relatively! weak! and! nonintrusive! type[s]! of! paternalism,! because! choices! are! not! blocked! or!
       fenced!off.”).!!!
       92
          !BARRY!SCHWARTZ,!THE!PARADOX!OF!CHOICE!(2004)!(discussing!cognitive!psychology!documenting!
       costs!of!excessive!choice).!
       93
          !See,!e.g.,!BOB!SULLIVAN,!GOTCHA!CAPITALISM.!
       94
          !See!Jeff!Chester,!The!AEI"Brookings!Joint!Center’s!Anti"Open"Internet!“Report,”!available!at!
       http://www.democraticmedia.org/jcblog/?p=157! (discussing! a! skeptical! view! on! the!
       resolvability!of!such!debates:!“[T]here!is!an!endless!supply!of!academics!and!private!scholars!
       who!engage!in!the!communications!policymaking!field.!.!.!.!![Many]!work!for!industry!hire!and!
       supply–surprise–what!is!deemed!intellectual!support!for!corporate!political!agendas.!!Missing!
       always!is!a!clear!statement!of!who!is!funding!them.”).!!!
                                                                                             23!

!
    illuminating!article!Creativity!and!Culture!in!Copyright!Theory,!Julie!Cohen!notes!that!
    efficiency!can!be!a!problematic!goal!in!cyberlaw:!!
        !
                [T]he!purported!advantage!of!.!.!.!economic!theories!is!neither!precisely!
                that!they!are!normative!nor!precisely!that!they!are!scientific,!but!that!
                they!do!normative!work!in!a!scientific!way.!Their!normative!heft!derives!
                from! a! small! number! of! formal! principles! and! purports! to! concern!
                questions!that!are!a!step!or!two!removed!from!the!particular!question!
                of! policy! to! be! decided.! .! .! .! These! theories! manifest! a! quasi"scientific!
                neutrality!.!.!.!that!consists!precisely!in!the!high!degree!of!abstraction!
                with! which! they! facilitate! thinking! about! processes! of! cultural!
                transmission.95!

    Sometimes!the!effort!to!emphasize!“questions!that!are!a!step!or!two!removed!from!
    the!particular!question!of!policy!to!be!decided”!amounts!to!little!more!than!giving!the!
    appearance!of!engaging!with!one’s!critics,!or!shifting!the!burden!of!proof!to!the!other!
    side.96!!Abstraction!can!obscure!the!practical!consequences!of!decisions!easily!justified!
    sub! species! aeternitatis.! ! Voices! within! law! and! economics! are! so! diverse! that! even!
    interlocutors! arguing! in! good! faith! can! talk! past! one! another.97! ! Fortunately,! many!
    scholars!are!beginning!to!supplement!economic!perspectives!on!network!neutrality!by!
    clarifying!the!cultural!and!philosophical!stakes!of!the!controversy.!!

        Jerry! Kang! has! astutely! reframed! the! network! neutrality! debate! in! his! recent!
    Race.Net! Neutrality.98! ! Based! on! his! work! in! both! telecommunications! and! anti"
    discrimination!law,!Kang!argues!that!the!prospect!of!network!providers!discriminating!
    against! certain! content! and! applications! providers! raises! two! broad! classes! of!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       95
          ! Julie! Cohen,! Creativity! and! Culture! in! Copyright! Theory,! 40! U.C.! DAVIS! L.! REV.! 1151,! 1157!
       (2007),! available! at! http://www.law.georgetown.edu/faculty/jec/creativityandculture.pdf!
       (supplementing!economic!approaches,!Cohen!claims!that!cultural!theory!offers!“account[s]!of!
       the! nature! and! development! of! knowledge! that! [are]! both! .! .! .! robust! and! .! .! .! nuanced,!
       [particularly!in!understanding]!how!existing!knowledge!systems!have!evolved,!and!how!they!
       are!encoded!and!enforced”).!
       96
          !David!McGowan,!Copyright!Nonconsequentialism,!69!MO.!L.!REV.!1!(2004)!(“because!scholars!
       favor! consequentialist! rhetoric,! the! debate! often! consists! of! competing! narratives! that! use!
       hunches!and!conjectures!to!link!the!result!an!author!desires!to!the!policy!the!author!favors.!!
       Because!the!evidence!in!such!arguments!is!so!weak,!the!legal!endgame!is!to!place!the!burden!
       of!proof!on!the!other!side.”).!!!
       97
          !See,!e.g.,!Anita!Bernstein,!Whatever!Happened!to!Law!and!Economics?,!64!MD.!L.!REV.!303,!
       307–08! (2005)! (“Stripped! of! its! distinctive! intellectual! features,! no! longer! able! to! give!
       descriptions!or!policy!recommendations!that!could!not!have!come!from!sources!outside! the!
       movement,!law!and!economics!now!functions!mainly!as!a!faculty!club!with!opaque,!arbitrary!
       criteria!for!membership.”).!
       98
          !See!generally!Jerry!Kang,!Race.Net!Neutrality,!6!J.!ON! TELECOMM.! &! HIGH! TECH.! L.!1,!1!(2007),!!
       available!at!http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1000042.!!
                                                             24!

!
    concerns:!deontological!and!welfarist.99!!While!the!economic!controversies!discussed!
    in! Part! II! address! a! range! of! issues! at! stake! on! the! welfarist! side! of! the! ledger,! they!
    cannot! do! justice! to! the! complexity! and! normative! import! of! deontic! concerns.100!!
    These!concerns!include!the!importance!of!media!diversity,!independent!gatekeepers,!
    and!“the!basic!distribution!of!communicative!power!and!opportunities!among!private!
    actors.”101! ! Network! neutrality! advocacy! is! less! about! maximizing! individual! welfare!
    than!it!is!about!the!type!of!society!we!want!to!become.!!As!such,!it!cannot!easily!be!
    translated!into!economic!terms.102!!!
         !
         Kang! focuses! first! on! content.103! ! A! “Berlusconi! effect”! can! occur! whenever! a!
    dominant! carrier! wants! to! advance! a! certain! political! figure.104! ! In! the! mass! media!
    context,! Cumulus! Media! eliminated! the! Dixie!Chicks! from! its! playlists! after! the! band!
    criticized! President! Bush.105! ! Although! such! concerns! might! seem! far"fetched! in! the!
    context!of!21st!century!carriers,!they!were!vindicated!recently!when!Verizon!Wireless!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       99
          ! Id.! at! 2.! Utilitarianism! is! a! consequentialist! maximizing! welfarism.! ! Amartya! Sen,!
       Utilitarianism! and! Welfarism,! 76! J.! PHIL.! 463,! 468! (1979)! (defining! welfarism! as! commitment!
       that! “The! judgment! of! the! relative! goodness! of! alternative! states! of! affairs! must! be! based!
       exclusively!on,!and!taken!as!an!increasing!function!of,!the!respective!collections!of!individual!
       utilities!in!these!states.”).!!!It!is!a!philosophical!foundation!of!economic!analysis!of!law.!!H.L.A.!
       Hart,!American!Jurisprudence!Through!English!Eyes:!The!Nightmare!and!the!Noble!Dream,!11!
       GA.! L.! REV.! 969,! 987"988! (discussing! the! work! of! Richard! Posner).! ! For! an! example! of! legal!
       economic!attention! to!consumer!welfare!as!the!summum!bonum!of!communications! policy,!
       see!J.!Gregory!Sidak,!A!Consumer"Welfare!Approach!to!Network!Neutrality!Regulation!of!the!
       Internet,!2!J.! COMPETITION! L.! &! ECON.!349,!352!(2006)!(complaining!that!“arguments!offered!in!
       favor! of! network! neutrality! regulation! have,! to! date,! exhibited! a! startling! lack! of! economic!
       rigor”! in! part! because! they! ignored! the! increase! in! consumer! satisfaction! that! tiered! access!
       could!bring).!
       100
            ! Id.;! see! also! Amit! M.! Schejter! and! Moran! Yemini,! Justice,! and! Only! Justice,! You! Shall!
       Pursue”:! Network! Neutrality,! the! First! Amendment! and! John! Rawls's! Theory! of! Justice,! 14!
       MICH.!            TELECOMM.!                 TECH.!   L.! REV.!  137! (2007),! available!   at!     http://!
       www.mttlr.org/volfourteen/schejter&yemini.pdf! (an! “element! of! the! theory! of! justice! that!
       renders!it!appropriate!is!its!establishment!of!basic!rights!for!all!prior!to!the!discussion!of!the!
       rules!by!which!market!forces!will!dictate!policy.”).!!!
       101
            !Id.!at!9.!!
       102
            ! As! Lars! Uhden! notes,! “Economics! is,! and! always! has! been,! considered! the! most!
       individualistic!of!the!social!sciences.”!!LARS! UDEHN,! METHODOLOGICAL! INDIVIDUALISM:! BACKGROUND,!
       HISTORY,!AND!MEANING!228!(2001).!!!
       103
            !!Id.!at!3.!!
       104
            ! See! C.! Edwin! Baker,! MEDIA! MARKETS,! AND! DEMOCRACY! (2002);! C.! Edwin! Baker,! Giving! The!
       Audience!What!It!Wants,!58!OHIO!ST.!L.!J.!311,!408!(1997)!(describing!this!effect,!i.e.,!how!Silvio!
       Berlusconi! owned! many! major! communications! outlets! in! Italy! and! used! his! influence! over!
       them!to!seize!political!power).!!
       105
            !Jerry!Kang,!Race.Net!Neutrality,!6!J.!ON! TELECOMM.! &! HIGH! TECH.! L.!1,!6!(2007),!!available!at!
       http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1000042.!
                                                                       25!

!
    decided!to!block!NARAL’s!speech!from!part!of!its!text"message!program.106!!Verizon’s!
    decision,!later!repealed,!did!not!necessarily!stem!from!a!pro"life!political!position,!but!
    rather,!a!policy!of!blandness!and!de"politicization.107!!That!is!one!reason!the!American!
    Catholic!Church!favors!network!neutrality:!it!realizes!that!the!Church!may!be!next!in!
    line! to! face! censorship! or! to! suffer! degraded! quality! of! service.108! ! The! cultural!
    consequences!of!untrammeled!carrier!control!over!content!may!be!far!worse!than!its!
    potential! to! stifle! the! types! of! efficiency! and! innovation! economists! usually! focus!
    on.109!

        To!be!sure,!advocates!of!the!free!market!have!an!answer!here:!a!leading!academic!
    opponent! of! ex! ante! network! neutrality! rules! claims! that,! in! the! wake! of! the!
    Verizon/NARAL!controversy,!“You!might!find!text"messaging!companies!competing!on!
    their!openness!policies.”!110!!But!precisely!the!reverse!could!also!occur:!big!lobbies!may!
    compete!to!shut!up!their!opponents.!!Perhaps!"patriotic"!organizations!will!call!for!a!
    boycott!of!companies!that!allow!anti"war!messages!on!their!networks.!!Are!we!really!
    willing!to!accept!whatever!option!market!forces!end!up!promoting?!!Only!a!Nozickian!
    libertarian! would! be! so! hostile! to! “pattern"oriented”! theories! of! social! justice! as! to!
    accept!the!desirability!of!that!state!of!affairs.!!Our!First!Amendment!is!not!consistent!
    with! a! world! in! which! major! carriers! and! intermediaries! sell! premium! “freedom! of!
    expression! plans”! to! elite! users,! while! reserving! the! right! to! block! whatever! content!
    they!find!objectionable!for!others.111!

       Admittedly,! the! Verizon/NARAL! controversy! can! be! viewed! as! undermining! the!
    case! for! net! neutrality.! ! Social! conservatives! have! been! influential! at! the! Federal!
    Communications!Commission!(FCC),!and!a!current!commissioner!has!argued!that!the!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       106
            !Adam!Liptak,!Verizon!Blocks!Messages!of!Abortion!Rights!Group,!N.Y.!TIMES,!Sept.!27,!2007.!!
       See! also! Jack! Balkin,! Media! Access:! A! Question! of! Design,! 76! GEO.! WASH.! L.! REV.! ! 101,! 101"2!
       (June!                                                2008),!     available!                              at!
       http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1161990#PaperDownload! (responding!
       to!Verizon’s!decision!to!block!messages!from!an!abortion!rights!group).!
       107
            !Id.!!
       108
            ! Mark! Pattison,! Catholic! Bishops! Among! Concerned! About! No! Safeguards! for! Equal! Web!
       Access! in! New! Telecom! Bills,! CATHOLIC! NEWS! SERVICE,! Sept.! 29,! 2006,!
       http://www.catholic.org/national/national_story.php?id=21445! (“With! no! safeguards! for! net!
       neutrality,! religious! groups,! including! the! U.S.! Conference! of! Catholic! Bishops,! fear! that!
       Internet!service!providers!will!discriminate!against!them!and!charge!them!if!they!want!to!get!
       the! same! level! and! speed! of! service! they! now! receive! for! their! online! sites! when! someone!
       types!in!their!Web!address.”).!!!
       109
            !Posting!of!Frank!Pasquale!to!Concurring!Opinions,!Net!Neutrality:!Law,!Money,!and!Culture,!
       http://www.concurringopinions.com!(Oct.!18,!2006,!15:58!EST).!
       110
            ! Christopher! Yoo,! quoted! in! Adam! Liptak,! Verizon! Blocks! Messages! of! Abortion! Rights!
       Group,!N.Y.!TIMES,!Sept.!27,!2007.!
       111
            !Neil!Netanel,!New!Wine!in!Old!Bottles,!George!Washington!L.!Rev.!(2007).!
                                                                     26!

!
    limitation! of! sexualized! content! should! be! the! FCC’s! top! priority.112! ! Advocates! of!
    deregulation! may! argue! that! the! Verizon! was! trying! to! curry! favor! with! the! FCC! by!
    taking! a! hard! line! against! NARAL.113! ! In! their! view,! legacy! regulation! leads! to! an!
    unhealthy!intertwining!of!business!and!government.114!!To!the!extent!the!carriers!are!
    unregulated,!they!are!less!susceptible!to!political!pressures!brewing!in!Washington.!
        !
        This! concern,! however,! extends! equally! to! network! providers! who! may! use! their!
    services! to! advance! their! own! political! or! cultural! agendas.! ! Unfortunately,! the!
    deregulationist! position! has! nothing! to! say! about! the! potential! political! biases! of!
    network! operators! themselves,! or! their! owners.! ! Commenting! on! the! broadcasters!
    also! regulated! by! the! FCC,! Kang! notes! that! concentrated! ownership! “prompted! the!
    networks! to! remain! silent! about! the! digital! TV! spectrum! that! was! given! gratis! to!
    current!television!broadcast!licensees,!sans!billions!of!dollars!in!auction!payments.”115!!
    Moreover,! as! C.! Edwin! Baker! has! argued,! the!market! itself! cannot! be! counted! on! to!
    deliver!socially!optimal!coverage!of!political!news!and!current!events.116!!
        !
        Both!application!and!content!providers!believe!that!they!would!have!to!compete!
    unfairly!with!larger!corporations!(or,!worse,!subsidiaries!of!carriers)!in!the!absence!of!
    network! neutrality! rules.! ! For! example,! the! Future! of! Music! Coalition! raises! this!
    possibility:!!
        !
                 What! would! happen! if! Sony! paid! Comcast! so! that! sonymusic.com!
                 would! run! faster! than! iTunes! or,! more! important,! faster! than!
                 cdbaby.com! ""! where! over! 135,000! indie! artists! sell! their! music.!!
                 Would! a! new! form! of! Internet! payola! emerge,! with! large! Internet!
                 content!providers!striking!business!deals!with!the!dominant!Internet!
                 service!providers?117!
        !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       112
            !       Deborah!                 Taylor!         Tate,! on!  W! Media! with!    Shelly!      Palmer,!
       http://www.shellypalmermedia.com/?cp=468.!!
       113
            ! See! Tim! B.! Lee,! Entangling! the! Web,! NY! Times! A21! (Aug! 3,! 2006),! available! at!
       <http://www.nytimes.com/2006/08/03/opinion/03lee.html>! (last! visited! Aug.! 27,! 2008)!
       (arguing! that! Congress! should! let! the! marketplace! develop! and! should! not! constrain! it! with!
       regulation).!
       114
            !See!id.!(noting!that!regulated!companies!spend!lavishly!on!lobbyist!and!lawyers!who!turn!
       the!regulatory!process!to!their!advantage).!
       115
            !Kang,!supra!note!40,!at!11.!!
       116
            ! C.! Edwin! Baker,! Media! Concentration:! Giving! Up! on! Democracy,! 54! FLA.! L.! REV.! 839,! 876!
       (2002)! (noting! that! the! competive! market! can! be! expected! to! grossly! fail! to! provide! for! the!
       preferences!of!the!public!or!for!the!needs!of!the!citizen)!
       117
            !Jenny!Toomey!and!Michael!Bracey,!Indie"rock!revolution,!fueled!by!net!neutrality,!THE!HILL,!
       June!13,!2004,!http://thehill.com/op"eds/indie"rock"revolution"fueled"by"net"neutrality"2006"
       06"13.html!(Toomey!and!Bracet!are!directors!at!the!Future!of!Music!Coalition).!
                                                                        27!

!
    Perhaps! big! content! providers’! partnerships! (or! mergers)! with! carriers! would! lead!
    them!to!maximize!sales!in!the!absence!of!network!neutrality!regulations.!!Consumers!
    may! even! be! happier! if,! instead! of! dealing! with! a! fragmented! entertainment!
    landscape,!they!had!more!of!a!store!of!common!references.118!!But!we!rightly!object!
    to!a!culture!industry!that!can!dictate!hits!from!on!high!while!masking!the!work!of!less!
    well"connected!artists.!
         !
         The! political! consequences! of! untrammeled! carrier! power! over! networks! would!
    also!be!disturbing.!!Bill!D.!Herman!lists!a!number!of!recent!examples!of!content!and!
    application! blocking.119! ! During! a! bitter! labor! dispute,! the! Canadian! carrier! Telus!
    blocked!access!to!a!union!website.120!!AT&T!censored!the!rock!group!Pearl!Jam’s!anti"
    Bush!lyrics.121!!Comcast!has!blocked!BitTorrent,!and!some!telephone!companies!have!
    scuttled! service! directed! to! competitors! Vonage! and! Skype.122! ! Both! Alejandro! Diaz!
    and! Dawn! Nunziato! have! cataloged! multiple! instances! of! search! engine! censorship.!!
    While!carriers!and!other!!intermediaries!try!to!trivialize!each!incident!individually,!the!
    pattern!suggests!a!willingness!to!tilt!the!digital!playing!field!against!disfavored!content!
    and!applications.!!!!!
         !
         Extant! incidents! involving! carriers! blocking! access! to! content! they! disapprove! of!
    and! applications! that! compete! with! their! own! proprietary! services! suggests! the!
    inadequacy! of! a! purely! economic! response! to! net! neutrality.! ! For! example,! carriers!
    may! have! seen! a! surge! in! revenue! in! 2003! if! they! “patriotically”! decided! to! ban!
    criticism!of!the!Iraq!war!on!the!network.!!That!may!have!led!to!more!spending!on!their!
    services!and!more!investment!in!the!network,!but!would!have!made!a!mockery!of!our!
    democratic! traditions.! ! Economic! models! tend! to! miss! the! cultural! importance! of!
    media!consolidation.!!FCC!rules!here!ultimately!govern!a!“battle!for!mindshare”123!and!
    cannot!be!cast!in!simple!economic!terms.!!
         !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       118
            !Cass!Sunstein,!The!Daily!We:!Is!the!Internet!Really!a!Blessing!for!Democracy?,!26.3!BOSTON!
       REVIEW,! Summer! 2001,! available! at! http://www.bostonreview.net/BR26.3/sunstein.html! (“a!
       system!of!perfect!individual!control!.!.!.!can!reduce!the!importance!of!the!‘public!sphere’!and!
       of!common!spaces!in!general.!One!of!the!important!features!of!such!spaces!is!that!they!tend!
       to!ensure!that!people!will!encounter!materials!on!important!issues,!whether!or!not!they!have!
       specifically!chosen!the!encounter.”).!
       119
            !Herman,!supra!note17,!at!122.!
       120
            !Id.!
       121
            ! Id.;! see! also! Nate! Anderson,! Pearl! Jam! censored! by! AT&T,! calls! for! a! neutral! 'Net,! ARS!
       TECHNICA,! Aug.! 9,! 2007,! http://arstechnica.com/news.ars/post/20070809"pearl"jam"
       censored"by"att"calls"for"a"neutral"net.html.!
       122
            !Herman,!supra!note17,!at!122.!
       123
            !I!borrow!this!term!from!Hannibal!Travis,!The!Battle!for!Mindshare:!The!Emerging!Consensus!
       that!the!First!Amendment!Protects!Corporate!Criticism!and!Parody!on!the!Internet,!10!VA.!J.L.!
       &!TECH.!3!(2005),!at!¶!143.!
                                                              28!

!
        New! traffic! management! methods! raise! another! set! of! concerns! ill"suited! to!
    economic! analysis:! privacy! and! autonomy.124! ! As! technologies! of! deep! packet!
    inspection,! packet! sniffing,! and! packet! injection! develop,! carriers! now! command! the!
    type! of! insights! into! their! customers’! behavior! once! only! achieved! by! search!
    engines.125! ! Net! neutrality! rules! provide! valuable! precedents! for! assuring! some!
    transparency! in! the! development! of! these! practices.! ! As! Michael! Powell’s! “fourth!
    freedom”! asserted,! consumers! have! a! right! to! “meaningful! plan! information,”!
    including!an!understanding!of!exactly!how!surveillance!of!them!is!being!used.!!!
        !
        The! classic! laissez"faire! approach! here! is! to! assume! that! the! market! will! address!
    any! lingering! privacy! concerns—that! individuals! will! simply! stop! using! a! service! that!
    becomes!too!invasive!of!their!privacy.126!!However,!established!social!dynamics!render!
    that! faith! in! uncoordinated! action! suspect.! ! Given! the! steady! decline! in! individuals’!
    expectations!of!privacy,!it!might!better!be!considered!an!irreducibly!social!good!than!
    some!quantum!of!enjoyment!individuals!trade!off!for!money.127!As!Sunstein!and!Frank!


!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       124
            ! Frank! Pasquale,! Can! Antitrust! Accommodate! Privacy! Concerns,! Posting! to! the! CONCURRING!
       OPINIONS!                       WEBLOG,!              Oct.!  23,!      2007!           (available!         at!
       http://www.concurringopinions.com/archives/2007/10/can_antitrust_a.html)!                             (“[T]he!
       valuation!problems!.!.!.![raised!by!online!privacy!policies]!might!be!difficult;! how!exactly! are!
       we!to!determine!how!much!consumers!are!willing!to!pay!to!avoid!privacy"eroding!companies?!
       .! .! .! .! [Perhaps]! we! should! stop! even! trying! to! pretend! that! these! decisions! can! be! made! on!
       anything!approaching!a!quantitative!basis.!Or!at!least!acknowledge!that!the!numbers!can!be!
       cooked!in!many!different!ways!to!produce!a!desired!end!result.”).!!!
       125
            !Tim!Wu,!Has!AT&T!Lost!its!Mind?!!A!Baffling!Proposal!to!Filter!the!Internet,!SLATE,!Jan.!16,!
       2008,!available!at! http://www.slate.com/id/2182152/!(“last!week!AT&T!announced! that! it!is!
       seriously!considering!plans!to!examine!all!the!traffic!it!carries!for!potential!violations!of!U.S.!
       intellectual!property!laws.!The!prospect!of!AT&T,!already!accused!of!spying!on!our!telephone!
       calls,!now!scanning!every!e"mail!and!download!for!outlawed!content!is!way!too!totalitarian!for!
       my! tastes.”);! Rob! Frieden,! Internet! Packet! Sniffing! and! Its! Impact! on! the! Network! Neutrality!
       Debate!and!the!Balance!of!Power!Between!Intellectual!Creators!and!Consumers,!FORDHAM! I.P.,!
       MEDIA! &! ENT.! L.! J.!633,!636"7!(“ISPs!have!upgraded,!or!soon!will!upgrade,!their!networks!with!
       hardware!and!software!that!enables!them!to!acquire!knowledge!about!what!kinds!of!content!
       they!switch,!route!and!transmit.”).!!!
       126
            ! It! is! debatable! whether! privacy! can! even! be! factored! into! antitrust! analysis.! ! See! Frank!
       Pasquale,! Can! Antitrust! Accommodate! Privacy! Concerns?,! available! at!
       http://www.concurringopinions.com/archives/2007/10/can_antitrust_a.html! (noting,! in!
       context! of! the! approved! Google/DoubleClick! merger,! that! privacy! “can't! fit! easily! into!
       contemporary!antitrust!analysis.!But!that!might!be!one!reason!to!establish!a!regulatory!body!
       that!could!take!a!more!holistic!view!of!the!role!of!search!in!the!contemporary!economy""and!
       to!suspect!any!proposals!to!move!from!ordinary!regulation!to!antitrust!as!the!sole!constraint!
       on!business!conduct!in!certain!fields.”).!!!
       127
            ! Charles! Taylor,! Irreducibly! Social! Goods,! in! PHILOSOPHICAL! ARGUMENTS! 139! (Harvard! Univ.!
       Press,!1995)!(critiquing!both!subjectivism!and!methodological!individualism,!and!insisting!that!
                                                                   29!

!
       suggested! in! their! work! on! cost"benefit! analysis! and! relative! position,! given! the!
       importance! of! positional! goods! in! today's! society,! people! who! trade! off! safety! or!
       privacy!or!other!intangibles!will!have!additional!resources!to!outcompete!peers!who!
       refuse!to!do!so.128!Though!their!work!was!inspired!by!health!and!safety!regulations,!its!
       upshot!applies!equally!well!to!privacy:!!
           !
                  When! a! regulation! requires! all! [individuals! to! purchase]! additional!
                  [privacy],! each! .! .! .! gives! up! the! same! amount! of! other! goods,! so! no!
                  [one]! experiences! a! decline! in! relative! living! standards.! The! upshot! is!
                  that! an! individual! will! value! an! across"the"board! increase! in! [privacy]!
                  much! more! highly! than! an! increase! in! [privacy]! that! he! alone!
                  purchases.129!

       A!collective!commitment!to!privacy!is!far!more!valuable!than!a!private,!transactional!
       approach! that! all! but! guarantees! a! race! to! the! bottom.130! ! Network! neutrality!
       regulations!can!include!rules!that!will!protect!the!privacy!that!market!competition,!left!
       on! its! own,! will! inevitably! erode.131! ! One! expert! even! predicts! that! privacy! concerns!
       will! “reinvigorate! [the]! stagnant! debate! [over! network! neutrality]! by! introducing!
       privacy! and! personal! autonomy! into! a! discussion! that! has! only! ever! been! about!
       economics!and!innovation.”132!
                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       irreducibly! social! goods! “exist[]! not! just! for! me! and! for! you,! but! for! us,! acknowledged! as!
       such.”).!!
       128
            !Robert!H.!Frank!and!Cass!Sunstein,!Cost"benefit!Analysis!and!Relative!Position,!68!U.! CHI.! L.!
       REV.! 323,! 327! (2001)! (discussing! “the! central! importance! of! relative! economic! position! to!
       people's!perceptions!of!their!own!well"being.”).!!
       129
            !Id.!
       130
            ! Siva! Vaidhyanathan,! Naked! in! the! Nonopticon,! CHRON.! HIGHER! EDUCATION,! Feb.! 15,! 2008!
       (“When!we!complain!about!infringements!of!privacy,!what!we!really!demand!is!some!measure!
       of! control! over! our! reputation! in! the! world.! Who! should! have! the! power! to! collect,! cross"
       reference,!publicize,!or!share!information!about!us,!regardless!of!what!that!information!might!
       be?!.!.!.!‘Self!help’![in!this!context]!merely!ratchets!up!the!arms!race!of!surveillance.”).!
       131
            ! Frank! Pasquale,! Can! a! Market! for! Privacy! Succeed?,! posting! to! CONCURRING! OPINIONS!
       Weblog,!                              Feb.!                         15,!                         2008!                          (available!                             at!
       http://www.concurringopinions.com/archives/2008/02/siva_vaidhyanat.html)! (“to! the! extent!
       we! want! privacy,! it! may! be! something! that! can! only! be! achieved! collectively""by! its! very!
       nature!it!may!well!be!a!good!that!is!impossible!for!the!market!to!provide,!because!the!very!act!
       of!bargaining!for!it!in!some!ways!lessens!its!value!(by!suggesting,!however!errantly,!that!the!
       bargainer!has!‘something!to!hide.’”)).!
       132
            ! Paul! K.! Ohm,! The! Rise! and! Fall! of! Invasive! ISP! Surveillance,! available! at!
       http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1261344! (last! visited! Sept.! 4,! 2008)!
       (“[T]his!Article!injects!privacy!into!the!network!debate!"!a!debate!about!who!gets!to!control!
       innovation! on! the! Internet.! Despite! the! thousands! of! pages! that! have! already! been! written!
       about!the!topic,!nobody!has!recognized!that!we!already!enjoy!mandatory!network!neutrality!
       in!the!form!of!expansive!wiretapping!laws.”).!!!
                                                                                             30!

!
        !
        Despite! the! threats! to! privacy,! cultural! autonomy,! and! democratic! politics! posed!
    by! untrammeled! carriers! and! intermediaries,! advocates! of! laissez"faire! still! suspect!
    regulation.!!They!fear!that!regulators!will!be!captured!(even!while!endorsing!a!policy!
    agenda! eerily! similar! to! that! of! the! feared! captors).! ! They! also! promote! the! US!
    communications! and! internet! industries! as! national! champions,! only! capable! of!
    “disruptive! innovation”! to! the! extent! they! escape! the! surly! bonds! of! regulatory!
    monitoring! and! common! carriage! requirements.! ! Comparative! analysis—of! ! both!
    different! countries! and! different! bottlenecks! in! cyberlaw—challenges! both! of! these!
    positions.!
        !
    IV.!The!Promise!of!Comparativism!
        !
        The!most!important!contribution!of!comparative!scholarship!is!to!make!Americans!
    aware!of!just!how!badly!existing!market"oriented!policies!are!doing.!!Susan!Crawford!
    marshals!the!evidence!in!a!recent!article:!!
        !
                 [T]he!U.S.!is!falling!behind!the!rest!of!the!world!in!highspeed!Internet!
                 penetration!at!a!rapid!clip.!As!of!November!2007,!the!U.S.!ranked!15th!
                 among! the! countries! of! the! world! in! highspeed! Internet! penetration!
                 (number! of! subscribers! per! hundred! people)! and! 21st! for! highspeed!
                 access!price.!Although!speeds!of!100!megabits!per!second!are!common!
                 in! Denmark,! Japan,! Romania,! Iceland,! Slovenia,! Dubai,! Kuwait,! and! in!
                 cities!in!Europe,!we!in!the!U.S.!pay!more!than!people!in!those!countries!
                 and! cities! for! less"than"2.5! megabits! per! second! speeds.! According! to!
                 the! Wall! Street! Journal,! “[t]he! U.S.! is! ranked! 25th! in! broadband!
                 penetration,! behind! countries! including! South! Korea,! where!
                 penetration!is!89%,!and!Canada,!where!it!is!63%.”!!!By!contrast,!in!2001!
                 an! OECD! study! found! that! the! U.S.! was! fourth! in! broadband!
                 penetration.!!
        !
    As!Crawford!puts!it:!“In! America,!the!price!of!Internet!access!is!high!and!speeds!are!
    slow.”! ! Like! the! US! health! care! system,! glacially! paced! broadband! penetration! in!
    America!has!begun!to!pose!serious!challenges!to!economic!growth!generally.!
        !
        Carriers!might!see!one!silver!lining!in!comparative!analysis—at!least!US!health!care!
    providers! are! also! underperforming.! ! Here! the! results! are! even! more! dramatic! and!
    disheartening.! ! US! per! capita! public! spending! on! health! care! (about! half! the! total!
    spending)!would!be!enough!in!any!other!country!to!buy!coverage!for!all!citizens—yet!
    the! US! has! almost! 50! million! uninsured.! ! Waiting! lines! for! primary! care! and! many!
    specialists!are!longer!in!the!US!than!in!comparable!OECD!countries.!!As!Himmelstein!
    and! Woolhandler! have! put! it,! we! are! "paying! for! national! health! insurance""and! not!
    getting!it."!Other!countries!with!as!good!or!better!health!outcomes!as!ours!spend!less!
                                                   31!

!
    per! capita! on! insuring! everyone.! And! our! government's! contribution! is! lower,!
    proportionally,! than! theirs""leaving! private! insurance! premiums! and! out"of"pocket!
    payments!to!help!cover!our!extraordinary!administrative!costs!and!well"remunerated!
    specialists.!!
         Comparative! health! law! scholarship! has! focused! on! identifying! best! practices! in!
    other! nations! that! can! improve! our! own! faltering! system.! ! ! Their! market"focused!
    opponents!have!tended!to!dismiss!plans!for!universal!coverage!as!socialistic,!inevitably!
    leading!to!captured!and!inefficient!bureaucracies.!!Yet!the!success!of!other!countries!
    in! this! area! has! discredited! broad"brush! rejectionism.! ! Rather! than! dismissing! other!
    nations’! policy! experiences,! sophisticated! conservatives! are! learning! about! them.!!
    George! W.! Bush’s! Health! and! Human! Services! Secretary! Mike! Leavitt! visited! the!
    Netherlands,! while! the! dean! of! consumer"directed! health! care! (Regina! Herzlinger)!
    began!promoting!a!Swiss!mix!of!markets!and!access.!!Even!if!the!election!of!2008!had!
    gone!far!differently,!productive!health!policy!debates!would!continue!to!focus!on!the!
    types! of! cross"national! policy! learning! that! comparativism! promises—rather! than!
    economic!modeling!that!presumes!health!care!to!be!like!any!other!good.!
        America’s!policy!debate!over!health!care!is!shaping!up!into!a!showdown!between!
    economic! analysts! driving! a! further! marketization! of! an! American! system! already! an!
    outlier! in! its! degree! of! commerciality,133! or! comparative! analysis! of! how! other!
    countries!manage!to!spend!less!and!cover!more.134!!Telecommunications!scholars!will!
    also!have!to!contend!with!the!challenge!of!addressing!comparativists’!insights!in!the!
    network! neutrality! debate.! ! Economics! should! only! be! one! of! many! concerns—
    including!culture,!politics,!and!privacy—that!animate!internet!policymaking.!
        Thomas! Bleha’s! analysis! of! Japanese! internet! policy! blazes! trails! worth!
    investigating.135! ! By! 2005,! Bleha! observed! that! “It! is! now! clear! that! Japan! and! its!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       133
            !Robert!Kuttner,!Market"Based!Failure!—!A!Second!Opinion!on!U.S.!Health!Care!Costs,!358!
       N.! ENG.! J.! MED.! 449,! 453! (2008)! (describing! U.S.! system! where! “resources! are! increasingly!
       allocated!in!response!to!profit!opportunities!rather!than!medical!need.!.!.!.”).!!
       134
            !See,!e.g.,!DANIEL! CALLAHAN!AND! ANGELA! WASUNNA,! MEDICINE!AND!THE! MARKET:! EQUITY!VS.! CHOICE!
       (Johns!Hopkins!Univ.!Press,!2006)!(“laying!out!the!market"versus"government!struggle!around!
       the!world—from!Canada!and!the!United!States!to!Western!Europe,!Latin!America,!and!many!
       African!and!Asian!countries”).!!!
       135
            Bleha,! Down! to! the! Wire,! Foreign! Affairs! (2005),! available! at!
       http://www.foreignaffairs.org/20050501faessay84311/thomas"bleha/down"to"the"
       wire.htmls;!                 but!           see!      Phil! Weiser,! Which! Broadband! Nation,!     at!
       http://www.foreignaffairs.org/20050901faresponse84514/philip"j"weiser"thomas"
       bleha/which"broadband"nation.html! (“The! U.S.! government! should! be! leery! of! endorsing!
       particular!technologies!""!or!even!certain!transmission!speeds!""!before!it!knows!more!about!
       them!and!whether!the!market!can!support!them.”).!!Given!the!US’s!present!desperate!need!
       for! economic! stimulus,! now! may! be! an! ideal! time! to! follow! the! Japanese! example! of!
       investment!here—which!was!designed!in!part!to!address!similar!concerns!in!the!wake!of!that!
       country’s!financial!crisis.!
                                                                        32!

!
    neighbors!will!lead!the!charge!in!high"speed!broadband!over!the!next!several!years.”!!
    The!US!squandered!its!own!first"mover!advantage.!!While!the!relative!compactness!of!
    Japan!and!the!Gerschenkronian!“benefits!of!backwardness”!that!led!to!the!rebuilding!
    of!its!wire!networks!after!World!War!II!gave!it!some!natural!advantages!over!the!US,!it!
    also!made!several!policy!choices!worth!investigating!on!this!side!of!the!Pacific.!!Japan’s!
    economic! malaise! in! the! 1990s! sparked! a! dirigiste! approach! to! infrastructural!
    improvements!designed!to!increase!productivity!generally.!!A!key!part!of!the!strategy!
    was! direct! and! ongoing! interventions! into! the! broadband! “market”—“the!
    telecommunications! ministry! .! .! .! compelled! regional! telephone! companies! to! grant!
    outside! competitors! access! to! all! their! residential! telephone! lines! in! exchange! for! a!
    modest! fee! (about! $2! per! line! a! month).”! ! ! Less! than! three! years! after! the!
    implementation! of! this! strategy! in! mid"2000,! Japan! had! leapfrogged! the! US! in!
    broadband! penetration! as! speed! increased! and! prices! stayed! comparatively! low.! ! As!
    one! reporter! noted,! “[T]he! story! of! how! Japan! outclassed! the! United! States! in! the!
    provision! of! better,! cheaper! Internet! service! suggests! that! forceful! government!
    regulation!can!pay!substantial!dividends.”136!!Unfortunately,!dominant!voices!in!the!US!
    debate!on!network!neutrality!have!marginalized!research!like!Bleha’s.!!!
        [More! lessons! from! France,! Japan,! Germany! and! the! EU! will! follow,! including!
    examples! of! regulation! of! carriers! and! search! engines.! ! A! few! paragraphs! here! will!
    discuss! the! Yoo/Frischmann! &! van! Schewick! debate! over! the! economics! of! network!
    neutrality,! concluding! that! the! deregulatory! side! has! set! forth! a! position! that! is! not!
    falsifiable! in! Popperian! terms.! ! It! therefore! should! either! a)! avoid! economic! analyses!
    that! model! the! human! sciences! on! natural! sciences! or! b)! acknowledge! the!
    incompatible!value"commitments!now!evident!in!the!literature.]!


!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       136
            !Blaine!Harden,!Japan’s!Warp"Speed!Ride!to!Internet!Future,!WASH.! POST!A1!(Aug!29,!2007)!
       (“In! the! United! States,! a! similar! kind! of! competitive! access! to! phone! company! lines! was!
       strongly!endorsed!by!Congress!in!a!1996!telecommunications!law.!But!the!federal!push!fizzled!
       in! 2003! and!2004,! when! the! Federal! Communications! Commission! and! a! federal! court! ruled!
       that!major!companies!do!not!have!to!share!phone!or!fiber!lines!with!competitors.!The!Bush!
       administration!did!not!appeal!the!court!ruling.!‘The!Bush!administration!largely!turned!its!back!
       on! the! Internet,! so! we! have! just! drifted! downwards,’! said! Thomas! Bleha,! a! former! U.S.!
       diplomat!who!served!in!Japan!and!is!writing!a!history!of!how!that!country!trumped!the!United!
       States!in!broadband.”);!see!also!Bob!Bell,!Broadband!Deregulation:!A!Comparative!Look!at!the!
       United! States! and! the! European! Union,! 10! TULANE! J! TECH! &! INTEL! PROP! L! 77,! 110! (2007)!
       (“Government! antitrust! regulation! of! anticompetitive! behavior! in! the! telecommunications!
       sector! [in! the! United! States]! has! been! relatively! nonexistent! [compared! to! Europe]! .!.!.”);!
       Thomas!Bleha,!Down!to!the!Wire,!FOREIGN! AFFAIRS!May/June!2005!(“[T]he!United!States!is!the!
       only!industrialized!state!without!an!explicit!national!policy!for!promoting!broadband.!.!.!.!The!
       Department! of! Commerce! [has]! insisted! that! the! market,! not! the! government,! should! drive!
       the!rollout!of!broadband.”).!!According!to!Bleha,!this!lack!of!initiative!has!“doomed!broadband!
       in!the!United!States!to!remain!much!slower!and!more!expensive!than!in!Japan.”!!Id.!
                                                             33!

!
           As!the!economic!debate!over!network!neutrality!in!the!US!stalls!into!a!dispute!over!
       whether! free"marketeers! or! regulators! have! the! “burden! of! proof,”! the! insights! of!
       comparativists! should! become! more! valuable.! ! Sociologists,! anthropologists,! political!
       scientists,! and! historians! with! experience! understanding! the! societies,! cultures,! and!
       administrative! structures! of! other! countries! should! be! just! as! valued! in! the! FCC! and!
       FTC!as!economists.!!!
              B.!Technological!Comparativism:!Understanding!Bottlenecks!

           Admittedly,!no!other!nation’s!regulatory!approach!can!be!applied!without!
       remainder!to!American!institutions.!!Any!comparativist!has!a!duty!to!understand!
       American!exceptionalism.137!In!some!cases!law!or!culture!may!be!so!different!in!the!US!
       that!a!“transplant”!of!alternative!approaches!will!be!rejected.!!Yet!even!in!those!cases,!
       there!is!another!form!of!comparativism!that!ought!to!get!more!attention!in!the!policy!
       community.!!My!past!work!has!grounded!calls!for!search!engine!accountability!in!the!
       same!net!neutrality!commitments!that!Google,!Yahoo!,!and!Microsoft!(among!others)!
       aspired!to!impose!on!carriers.138!!Given!the!similar!market!shares!of!eBay!(in!auction!
       sites)!and!Microsoft!(in!operating!systems),!we!might!anchor!policy!assuring!fairness!in!
       auction!platforms!in!the!literature!on!antitrust!policy!for!operating!systems.!!Privacy!
       and!interoperability!concerns!raised!by!social!networks!echo!the!sophisticated!
       dialogue!about!device!neutrality!that!Jonathan!Zittrain!and!Marina!Lao’s!recent!work!
       engages.!!The!chart!below!illustrates!these!comparisons:!!




!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       137
          ! See,! e.g.,! David! Cutler,! Health! Care,! in! PETER! SCHUCK! AND! JAMES! Q.! WILSON,! UNDERSTANDING!
       AMERICAN! EXCEPTIONALISM! (2008).! ! For! an! example! from! the! health! care! context,! see! PAUL! V.!
       DUTTON,! DIFFERENTIAL! DIAGNOSES:! A! COMPARATIVE! HISTORY!OF! HEALTH! CARE! PROBLEMS!AND! SOLUTIONS!
       IN!THE!UNITED!STATES!AND!FRANCE!(2007).!
       138
          !Frank!Pasquale,!Internet!Nondiscrimination!Principles,!2008!U.!Chi.!L.!F.!266!(2008).!
                                                               34!

!
                                              Comparing!Bottlenecks!

    Given!these!                           .!.!.!this!established!                .!.!.!might!inform!new!
    characteristics!of!the!                debate.!.!.!!                          debates!on!
    bottlenecks!in!                                                               intermediaries.!!
    question,!!
    a)!purely!economic!                    Operating!System!                      Auction!Site!Fairness!
    entity!                                Openness!(MS!                          (eBay)!
    b)!strong!user!                        Antitrust)!
    community!
    Mix!                                   Device!neutrality!(iPod!               Social!Network!Data!
                                           interoperability)!                     Portability!and!User!
                                                                                  Rights!(Facebook)!
    a)!strong!cultural!and!                Network!neutrality!                    Search!Engine!
    political!influences!                  (common!carriage!                      Responsibility!(Google)!
    b)!weak!user!                          requirements)!
    community!

        These! analogies! are! rooted! in! a! leitmotif! of! current! debates! over! network!
    neutrality:! the! proper! balance! between! ex! ante! regulation! and! ex! post! antitrust!
    investigation! in! online! life.139! ! Network! effects,! economies! of! scale,! and! exclusive!
    licensing!agreements!are!among!the!many!forces!that!lead!to!concentration!online.140!!
    The! migration! of! information! and! applications! from! desktop! PCs! to! a! "cloud"! of!
    computers! located! at! companies! like! Google! and! Facebook! accelerates!


!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       139
            !While!many!anti"net!neutrality!scholars!have!claimed!that!antitrust!should!be!the!dominant!
       approach! here,! others! have! criticized! their! reliance! on! it.! ! See,! e.g.,! Barbara! A.! Cherry,!
       Misusing! Network! Neutrality! to! Eliminate! Common! Carriage! Threatens! Free! Speech! and! the!
       Postal! System,! 33! N! KY! L! Rev! 483,! 502! (2006)! (“[T]o! advocate! primary! reliance! on! antitrust!
       principles! ignores! important! historical! facts.! Common! carriage! regulation,! both! under! the!
       common! law! and! statutorily,! evolved! prior! to! antitrust! regulation.! Thus,! antitrust! law!
       subsequently! evolved! to! augment—that! is,! to! address! issues! and! situations! not! already!
       encompassed!by—common!carriage.!.!.!.!Advocates!of!a!regime!based!solely!on!antitrust!fail!
       to!explain!how!the!issues!pertaining!to!the!provider"to"customer!relationship,!that!have!been!
       governed! by! the! ex! ante! rules! of! industry"specific! common! carriage! regulation,! will! be!
       adequately!addressed!by!antitrust!ex!post!remedies.”).!
       140
            !David!S.!Evans,!Antitrust!Issues!Raised!by!the!Emerging!Global!Internet!Economy,!102!Nw.!
       U.!L.!Rev.!Colloquy!285!(2008)!(“European!Community!law!and!decisional!practice!.!.!.!!impose!
       special! obligations! and! significant! scrutiny! on! firms! that! have! market! shares! as! low! as! 40!
       percent.”).!!Evans!compiles!data!demonstrating!that!Google!has!well!above!this!market!share!
       in!Europe!and!the!U.S.!!Id.!(citing!comScore,!MyMetrix!qSearch!2.0!Key!Measures!Report!(Dec.!
       2007),! available! at! <http://www.comscore.com/method/method.asp>! (last! visited! Aug! 28,!
       2008)).!
                                                             35!

!
    concentration.141! ! Policy! debates! have! focused! on! proper! methods! of! introducing!
    competition! to! these! intermediary! markets,! just! as! they! have! in! the! context! of! the!
    physical!layer!of!communications!policy.142!!But!competition!is!only!one!of!many!tools!
    we! can! use! to! encourage! responsible! and! useful! intermediaries.! We! should! rely! on!
    markets! and! antitrust! to! the! extent! that! a)! the! intermediary! in! question! is! an!
    economic! (as! opposed! to! cultural! or! political)! force;! b)! the! "voice"! of! the!
    intermediary's! user! community! is! weak! (since! competition! is! designed! to! provide!
    those!users!an!"exit"!option,!ala!Hirschman143);!c)!competition!is!likely!to!be!genuine!
    and! not! contrived.! ! These! criteria! help! us! map! older! debates! about! platforms! onto!
    newer!entities.!!

        In! the! case!of! search! engines,! each! of! these! factors! strongly! militates! in! favor! of!
    regulatory!intervention.!!Though!Google’s!antitrust!woes!have!grabbed!headlines!(and!
    apparently! scuttled! its! planned! joint! venture! with! Yahoo!),! they! are! among! the! less!
    significant!issues!the!company!raises.!!As!Bracha!and!I!have!argued,!there!are!several!
    reasons!to!suspect!that!the!general!purpose!search!market!is!a!self"reinforcing!natural!
    monopoly.144! ! Just! as! past! policymakers! recognized! the! need! for! common! carrier!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       141
            ! Picker,! Competition! and! Privacy! in! Web! 2.0! and! the! Cloud,! NW! L.! Rev.! Colloquy! (2008)!
       (“Google! dominates! the! current! Web! 2.0! market.! And! like! Windows,! Google’s! infrastructure!
       has! no! obvious! boundaries.! Indeed,! the! Google! engine! is! in! many! ways! more! powerful! than!
       Microsoft’s.! It! is! not! obvious! how! the! size! of! Windows! or! its! functionality! affected! the! price!
       that! Micro"soft! could! charge! for! Windows.! When! Microsoft! added! browser! functionality! to!
       Windows,!there!was!no!direct!increase!in!the!price!of!Windows.!In!contrast,!Google’s!#price!
       scales! up! directly! with! each! added! service! that! it! finances! through! advertising.! Google’s!
       expansion! model! results! in! additional! revenue! with! each! ad! that! is! clicked.! Like! Windows,!
       Google’s!business!has!no!obvious!boundaries.”).!!!
       142
            ! See,! e.g.,! Randal! Picker,! Competition! and! Privacy! in! Web! 2.0! and! the! Cloud,! NW! L.! Rev.!
       Colloquy!(2008).!!
       143
            ! HIRSCHMAN,! EXIT,! VOICE,! LOYALTY.! ! To! the! extent! exit! is! unavailable,! voice! (influence)! within!
       the! relevant! intermediary! becomes! less! necessary;! to! the! extent! voice! is! available,! exit!
       becomes!less!necessary.!
      144
         !Bracha!and!Pasquale.!!These!tactics!and!factors!include!1)!Trade!Secret!Protections!for!the!
      Search! Engine! Algorithm! (Unlike! patents,! which! the! patent! holder! must! disclose! and! which!
      eventually!expire,!these!trade!secrets!may!never!enter!the!public!domain.);!2)!Network!Effects!
      in!Improving!Search!Responsiveness!(The!more!searches!an!engine!gets,!the!better!able!it!is!to!
      sharpen!and!perfect!its!algorithm.!!The!result!is!that!each!additional!user!decreases!the!cost!of!
      a! better! quality! service! for! all! subsequent! users.! ! Thus,! incumbents! with! large! numbers! of!
      users!enjoy!substantial!advantages!over!smaller!entrants;!3)!Content!Licensing!Costs!(A!key!to!
      competition!in!the!search!market!is!having!a!comprehensive!database!of!searchable!materials.!!
      The! ability! to! obtain! exclusive! legal! rights! over! searchable! materials,! however,! may!
      substantially!increase!the!cost!of!obtaining!and!displaying!this!data!and!the!metadata!needed!
      to!organize!it.);!4)!Consumer!Habit!(Many!searchers!are!accustomed!to!using!a!certain!number!
      of!providers,!use!them!relatively!habitually,!and!are!reluctant!to!switch,!despite!the!existence!
      of!alternatives;!5)!Personalized!Search;!6)!Nonportable!AdSense!Data!(see!Ben!Edelman’s!work!
      here);!7)!Two"sided!market!dynamics!(Given!Google’s!market!share!of!roughly!70%!in!search!
                                                          36!

!
       obligations! in! the! development! of! naturally! monopolistic! telephone! and! cable!
       companies,! present! ones! will! need! to! recognize! Google’s! status! as! an! increasingly!
       essential! facility! for! researchers,! advertisers,! and! media! outlets.! ! The! debate! on! net!
       neutrality! has! influenced! my! work!on! search! engines,! and! has! already!inspired! work!
       on!search!neutrality!by!Andrew!Odlyzko.!!

           The! parallel! is! apt! because,! to! use! the! three! dimensions! discussed! above,!
       dominant! general"purpose! search! engines! a)! are! just! as! important! to! culture! and!
       politics! as! they! are! to! economic! life,! b)! give! users! very! little! verifiable! information!
       about!how!they!operate,!and!are!essentially!credence!goods,!making!user!community!
       influence! doubtful,! and! c)! have! many! strategies! available! to! create! virtually!
       insuperable! barriers! to! those! aspiring! to! overtake! them.! The! first! point""regarding!
       cultural!power""should!lead!scholars!away!from!merely!considering!economies!of!scale!
       and!scope!and!network!effects!in!evaluating!search!engines.!We!need!to!consider!all!
       dimensions!of!network!power""the!full!range!of!cultural,!political,!and!social!obstacles!
       to!competition!that!a!dominant!standard!can!generate.145!

             It! is! not! merely! markets! shaped! by! antitrust!enforcement!that! are! insufficient! to!
       constrain!problematic!outcomes!in!the!search!space—the!common!law!is!also!likely!to!
       fall! short.! ! A! brief! consideration! of! the! problems! posed! by! Google—and! its!
       extraordinary!legal!and!policy!success!in!defeating!or!delaying!accountability!measures!
       here—illuminates!the!issue.!!Given!the!secrecy!of!its!ranking!algorithms!and!methods,!
       it! is! nearly! impossible! for! any! affected! party! to! determine! whether! it! has! a! “stealth!
       marketing! problem”! in! search—i.e.,! a! competitor! that! is! somehow! leveraging!
       payments!or!business!partnerships!to!gain!greater!exposure!on!the!first!few!pages!of!
       results.!!Recognizing!this!problem,!the!Federal!Trade!Commission!has!made!some!very!
       tentative!steps!toward!recognizing!the!potential!for!consumer!deception!and!harm!to!
       competition! here.! In! 2002,! it! sent! a! letter! to! various! search! engine! firms!
       recommending!that!they!clearly!and!conspicuously!distinguish!paid!placements!from!
       other!results.!!But!neither!the!FTC!nor!other!potential!regulators!has!followed!up!such!
       guidance! with! genuine! enforcement! authority! or! systematic! monitoring.! ! Though!
       consumer!education!may!be!helpful!here,!given!search’s!status!as!a!credence!service!
       in!a!wide!range!of!crucial!cases,!it!cannot!entirely!supplant!regulation.!

           In! the! few! lawsuits! that! have! considered! anything! like! this! issue,! Google! has!
       successfully!raised!a!First!Amendment!defense!to!defeat!claims!by!those!disgruntled!
       with! low! rankings.! ! This! strategy! would! likely! succeed! a! fortiori! in! cases! where! the!
       plaintiff! suspected! payola! by! competitors.! ! ! Even! assuming! it! did! not,! it! is! hard! to!

                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
         advertising,! advertisers! vastly! prefer! it! to! other,! less! trafficked! alternatives.! ! Present!
         dominance!entrenches!future!dominance!as!its!expertise!on!user!habits!grows!to!the! extent!
         that!no!competitor!can!match!its!understanding!of!how!to!target!ads!well.).!
         145
             !DAVID!GREWAL,!NETWORK!POWER!(Yale!U.P.,!2008).!!!
                                                                                             37!

!
    imagine!any!but!the!most!wealthy!and!sophisticated!plaintiffs’!attorneys!attempting!to!
    understand!the!tweaks!to!the!Google!algorithm!that!might!have!produced!such!fast"
    tracking.!!Trade!secrets!have!been!deployed!in!the!context!of!voting!machine!litigation!
    to! deter! investigations! of! the! black! box! software! used! to! operate! these! machines.!!
    Examination!of!Google’s!algorithms!subject!to!very!restrictive!protective!orders!would!
    amount!to!a!similar!barrier!to!accountability—and!given!the!speculative!nature!of!any!
    contract"!or!tort"based!case,!it!is!hard!to!imagine!rational!litigants!taking!on!that!risk.!

        In! short,! while! a! furtive! “fast"tracking”! of! some! content! past! others! might! raise!
    some!suspicions!among!its!direct!(but!dispersed)!victims,!the!real!issues!it!raises!are!
    far!broader.!!An!online!ecology!of!information!that!purports!to!be!based!on!one!(albeit!
    secret)!mode!of!ordering,!while!it!is!actually!based!on!another,!sets!an!unfair!playing!
    field! as! troubling! as! that! feared! by! critics! of! discrimination! on! the! physical! layer! of!
    internet! transmissions.! ! Stealth! marketing! generates! serious! negative! externalities!
    that! are! difficult! to! quantify! but! undeniable! menaces! to! personal! autonomy! and!
    cultural!authenticity.!!Moreover,!the!degree!of!expertise!necessary!to!recognize!it!in!
    the!new!online!environment!is!likely!to!defeat!all!but!the!most!committed!observers.!!!

        This! potent! combination! of! expertise! and! externalities! is! a! classic! rationale! for!
    regulation.!!As!Danny!Weitzner’s!proposal!for!“extreme!factfinding”!(in!the!context!of!
    the! Google/DoubleClick! merger! review)! recognized,! only! a! dedicated! group! of!
    engineers,!economists,!and!computer!scientists!can!be!adept!enough!at!understanding!
    search!engine!decisions!as!a!whole!to!adjudicate!any!particular!claim!of!bias,!payola,!
    fast"tracking,! or! retaliation.146! ! James! Grimmelmann’s! proposed! revisions! for! the!
    proposed! Google! Book! Search! settlement! similarly! recognize! the! need! for! ongoing!
    monitoring!by!an!expert!agency.147!



!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       146
            ! Weitzner! proposes! that! “Regulators! should! appoint! an! independent! panel! of! technical,!
       legal!and!business!experts!to!help!them!review,!on!an!ongoing!basis!the!privacy!practices!of!
       Google.”!!The!panel!would!be!“made!up!of!those!with!technical,!legal!and!business!expertise!
       from!around!the!world.”!!It!would!hold!“public!hearings!at!which!Google!technical!experts!are!
       available! to! answer! questions! about! operational! details! of! personal! data! handling.”! ! There!
       would!be!“staff!support!for!the!panel!from!participating!regulatory!agencies,”!and!“real"time!
       publication! of! questions! and! answers.”! ! “An! annual! report! summarizing! what! the! panel! has!
       learned”!each!year.!!I!propose!to!expand!the!scope!of!the!panel!beyond!privacy!issues!to!the!
       range!of!stealth!marketing!and!open!access!concerns!I!address!in!Internet!Nondiscrimination!
       Principles.!!The!bottom!line!here!is!that!someone!needs!to!be!able!to!“look!under!the!hood”!of!
       culturally!significant!automated!ranking!systems.!!This!idea!has!been!adumbrated!in!Danielle!
       Citron,! Technological! Due! Process,! David! Levine,! Trade! Secrets! in! Infrastructure,! and! Samir!
       Chopra,!Decoding!Liberation.!
       147
            !Admittedly,!Grimmelmann!locates!the!basis!for!this!scrutiny!in!antitrust!law,!but!the!type!of!
       ongoing!monitoring!he!proposes!(based!on!ASCAP’s!settlement!with!the!DOJ)!fits!comfortably!
                                                             38!

!
            What! about! auction! platforms,! another! internet! platform! discussed! in! David! S.!
       Evans'! recent! piece! on! concentration! on! the! Internet?! Here,! a! purely! economic,!
       antitrust"driven! approach! to! possible! problems! is! more! appropriate.! To! use! the!
       criteria!mentioned!above:!a)!a!site!like!eBay!is!a!very!important!online!marketplace,!
       but! has! little! cultural! or! political! impact! and! b)! the! user! community! at! eBay!
       understands! its! reputation! rankings! very! well,! and! has! shown! remarkable! capacities!
       for! cohesion! and! self"organization! to! protest! (and! occasionally! overturn)! policies! it!
       dislikes.! These! factors! overwhelm! the! possibility! that! c)! competition! in! the! general"
       auction! (as! opposed! to! niche! auction)! market! may! be! unlikely! to! develop.! If! real!
       competitors! fail! to! materialize! due! to! illicit! monopolization,! antitrust! judgments!
       against! Microsoft! (and! parallel! requirements! of! some! forms! of! "operating! system!
       neutrality")! can! guide! future! litigants! seeking! online! auction! platform! neutrality.!!
       While! eBay's! user! community! successfully! pressured! Disney! to! end! its! 2000! special"
       preference! deal! with! eBay,! in! the! future! antitrust! judgments! or! settlements! might!
       require!the!full!disclosure!of!(and!perhaps!put!conditions!on)!such!deals.148!

            In! social! networks,! another! area! where! tipping! can! quickly! lead! to! one! or! a! few!
       players'! dominance,149! the! situation! is! more! mixed.! ! My! nascent! intuitions! are! that!
       social!networks!are!closer!to!search!engines!than!auction!sites!with!respect!to!!factor!
       a)—they! are! becoming! crucial! hubs! of! social! interactions,! cultural! distribution! and!
       promotion,! and! political! organizing.150! ! Supporters! of! Hillary! Clinton! allege! that!
       Facebook!tilted!the!playing!field!in!favor!of!Silicon!Valley!favorite!Barack!Obama,!and!
       one!can!easily!imagine!payola!problems!emerging!on!a!network!as!important!to!bands!
       as!MySpace!is.151!!On!the!other!hand,!social!networks!provide!a!good!deal!of!leverage!
       to! their! members! to! police! their! bad! behavior,! opening! up! “voice”! options! (with!

                                                                                                                                                                                              !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       within! the! regulatory! proposal! I! am! making.! It! is! not! part! of! the! normal! model! of! ex! post!
       judicial!review!of!particular!combinations!in!restraint!of!trade.!!!
       148
            !In!2000,!eBay!granted!special!perks!to!Disney!on!a!platform!within!its!auction!site.!!After!
       howls! of! protest! from! “the! community,”! the! perks! ceased.! ! eBay! CEO! Meg! Whitman! said! of!
       the!special!Disney!deal:!“We’ve!concluded!that!eBay!has!to!be!a!level!playing!field.!!That!is!a!
       core! part! of! our! DNA,! and! it! has! to! be! going! forward.”! ADAM! COHEN,! THE! PERFECT! STORE! 292!
       (2006).!
       149
            !In!early!2008,!98%!of!Brazilian!social!networkers!used!Google’s!Orkut;!97%!of!South!Korean!
       social! networkers! used! CyWorld,! and! 83%! of! American! social! networkers! used! MySpace! or!
       Facebook.!!James!Evans.!
       150
            !James!Grimmelmann,!Facebook!and!the!Social!Dynamics!of!Privacy;!Brian!Holland.!
       151
            !Felix! Stalder:!“there!is!a! tension!at! the!core!of!the!Web!2.0! phenomenon! created!by!the!
       uneasy!(mis)match!of!the!commercial!interests!of!the!companies!and!social!interests!of!their!
       users.!.!.!.!All!this!social!interaction!takes!place!within!privately!owned!spaces!so!that!users!are!
       basically!faced!with!a!take"it"or"leave"it!decision!that!few!of!them!are!really!aware!of.!There!is!
       a!structural!imbalance!between!the!service!providers!who!have!a!tangible!incentive!to!expand!
       their! manipulative! capacities! and! the! average! users! who! will! barely! notice! what’s! going! on,!
       since!it!would!require!a!lot!of!effort!to!find!out.”!
                                                                                             39!

!
    respect!to!factor!b)!far!more!potent!than!those!available!to!the!scattered!searchers!of!
    Google.152! ! A! group! named! “Facebook:! Stop! Invading! My! Privacy”! became! very!
    popular!within!Facebook!itself,!catalyzing!opposition!to!some!proposed!features!of!its!
    Beacon!program.153!!Such!communities!may!be!at!least!as!powerful!as!those!seen!on!
    eBay! to! "police"! their! own! policies.! ! On! the! final! factor,! competitive! dynamics,! it!
    appears!that!competition!is!more!likely!to!develop!in!the!social!network!space!than!in!
    the! search! engine! or! auction! platform! industries.! ! Evans’s! data! discloses! a! more!
    diverse!playing!field!here!than!in!the!online!auction!or!search!space,!and!one!recent!
    article!claimed!that!over!4,000!social!networks!exist!in!the!US.!

       Given!this!mix!of!background!conditions,!debates!about!social!network!"neutrality"!
    and! transparency! may! end! up! looking! like! current! debates! on! "device! neutrality."!
    Consider! this! discussion! from! Jonathan! Zittrain's! book! on! interoperability154! and!
    openness!in!a!wide!variety!of!platforms:!!

             Reasonable!people!disagree!on!the!value!of!defining!and!legally!mandating!
             network!neutrality.!But!if!there!is!a!present!worldwide!threat!to!neutrality!
             in! the! movement! of! bits,! it! comes! from! enhancements! to! traditional! and!
             emerging!“appliancized”!services!like!Google!mash"ups!and!Facebook!apps,!
             in! which! the! service! provider! can! be! pressured! to! modify! or! kill! others'!
             applications! on! the! fly.! Surprisingly,! parties! to! the! network! neutrality!
             debate—who! have! focused! on! ISPs—have! yet! to! weigh! in! on! this!
             phenomenon.!.!.!.!
             [A]!norm!of!protecting!settled!expectations!might!suggest!the!following:!if!
             Microsoft! wants! to! make! the! Xbox! a! general! purpose! device! but! still! not!
             open! to! third"party! improvement,! no! regulation! should! prevent! it.! But! if!
             Microsoft!does!so!by!welcoming!third"party!contribution,!it!should!not!later!
             be! able! to! impose! barriers! to! outside! software! continuing! to! work.! Such!
             behavior!is!a!bait!and!switch!that!is!not!easy!for!the!market!to!anticipate!
             and!that!stands!to!allow!a!platform!maker!to!exploit!habits!of!generativity!
             to!reach!a!certain!plateau,!dominate!the!market,!and!then!make!the!result!
             proprietary—exactly! what! the! Microsoft! case! rightly! was! brought! to!
             prevent.!

    Zittrain's! fundamental! idea! here! is!that! proponents! of! different! "neutralities"! should!
    talk! to! each! other! more,! in! an! effort! to! encourage! the! development! of! business!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
       152
            ! Admittedly,! to! its! credit,! Google’s! many! blogs! accept! trackbacks! that! appear! to! allow!
       critical!commentators!both!to!question!the!policies!it!announces!via!the!blogs!and!to!find!out!
       about!one!another’s!advocacy!at!the!very!post!they!are!commenting!on.!
       153
            !See!William!McGeveran’s!account!of!this!on!Info/Law.!
       154
            ! Clarify! with! respect! to! Perzanowski’s! and! Picker’s! discussion! of! the! concept! of!
       interoperability.!
                                                             40!

!
    models! that! reward! openness! and! cooperation.! ! Sometimes! ideas! for! policy! cross"
    pollination! may! be! justified! on! purely! economic! grounds—for! example,! enhancing!
    both!social!graph!data!portability!and!music’s!ability!to!be!played!on!diverse!carriers!
    may! ultimately! enhance! both! consumer! welfare! and! the! competitive! landscape! of!
    social!networks!and!devices.!!!

        Yet!any!analysis!based!on!economic!modeling!of!a!particular!area!should!recognize!
    the! sensitive! cultural! and! political! issues! raised! by! bottlenecked! platforms.! ! The! a)!
    cultural,! b)!communal,!and! c)! competitive! dynamics! surrounding! new! intermediaries!
    defy! easy! or! stereotyped! responses.! ! As! James! Grimmelmann! points! out,! data!
    portability!for!Facebook!users!may!threaten!the!privacy!rights!of!others!in!their!social!
    graph.! ! What! a! friend! assumed! would! stay! locked! up! in! the! “walled! garden”! of!
    Facebook! may! make! its! way! onto! wilder,! better"searchable! social! networks! if! data!
    portability! is! not! done! carefully.! ! While! economics! proceeds! on! a! paradigm! of!
    maximizing! consumer! welfare,! this! goal! is! but! one! of! many! dimensions! in! which!
    intermediary!performance!should!be!measured.!!!

        Conclusion!

        Economic! analysis! of! network! neutrality! has! focused! on! comparisons! of! the!
    internet! to! utilities! and! infrastructural! transportation! facilities! like! freeways,! trains,!
    postal! services,! and! flights.! ! Yet! broadband! access! fundamentally! differs! from! the!
    transport! and! energy! sectors""it! has! far! more! cultural! and! political! consequences.!!
    Carriers,! search! engines,! and! social! networks! determine! how! well! individuals! can!
    connect! to! a! metaverse! of! ideas,! entertainment,! and! common! interests.! ! New!
    practices! like! deep! packet! inspection! raise! privacy! concerns! greater! than! TSA! or! EZ"
    Pass! monitoring.! ! These! cultural! concerns! cannot! be! integrated! into! conventional!
    economic!analysis,!and!provide!alternative,!non"economic!grounds!for!net!neutrality!
    rules.! ! The! question! now! is! whether! American! agencies! can! develop! the! types! of!
    expertise!necessary!to!learn!from!other!countries!(and!past!controversies!over!other!
    points!of!control)!in!order!to!address!these!concerns.!

        Dominant! search! engines! and! social! networks! are! not! simply! businesses,! but!
    rather! should! be! considered! as! cornerstones! of! contemporary! culture! and! politics.!!
    Carriers!are!regulated!due!to!similar!levels!of!cultural!and!political!importance.!!Like!
    carriers,! dominant! intermediaries! are! in! a! privileged! position! due! to! favorable! and!
    mutable! legal! developments.! ! Controls! now! governing! intermediaries! at! the! physical!
    layer!should!be!translated!into!obligations!for!dominant!intermediaries!at!the!content!
    and! social! layers—especially! as! these! layers! start! to! converge! in! mergers! and! joint!
    venture! deals.! ! The! public! values! reflected! in! such! obligations! are! unlikely! to! be!
    realized! in! either! litigation! or! market! competition.! ! Regulation! will! require! agencies!
    like! the! FTC! to! develop! expertise! necessary! to! more! deeply! understand! how! search!


                                                     41!

!
    engines! and! social! networks! operate,! and! how! other! nations! address! their! growing!
    importance.!!




                                                 42!

!