Friday, November 19, 2010

The Energy and Commerce Committee and the FCC

This article from Politico is a great example of Weingast and Moran’s congressional dominance model. It describes how the Republican representatives who could potentially come to lead the Energy and Commerce Committee in January are issuing a clear warning to the FCC (which it oversees) to stop pursuing net neutrality. Net neutrality is a set of regulations that would require all internet providers to treat all web traffic equally. The reaction from the representatives followed an announcement that the FCC would address net neutrality in its December meeting. A total of 19 representatives signed a letter warning the FCC that moving forward with net neutrality would be “a mistake.” Rep. Fred Upton (R-Mich), considered the frontrunner to lead the committee threatened that “the FCC will be prominently featured and Chairman Genachowski will soon be a familiar face on Capitol Hill” if the FCC moves ahead with net neutrality. As Weingast and Moran’s model predicts, the FCC was proceeding with little congressional interference, until there was a change in the policy preferences of the relevant committee. This change in interest has been made clear and congress has asserted its dominance over policy by issuing threats of hearings and investigations. Also interesting are Rep. Upton’s top campaign donors, AT&T, Comcast, the National Cable and Telecommunications Association, and Verizon all of which have an economic interest in preventing net neutrality regulation.

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