Saturday, November 19, 2016

Net Neutrality and Donald Trump

Over the past years, debate about net neutrality, which Google defines as "the principle that Internet service providers should enable access to all content... regardless of the source... without favoring or blocking particular products or websites" has presented a contentious issue.  Typically, Democrats and the current presidency have advocated for net neutrality, while Republicans have been more opposed.
Currently, net neutrality is required by law.  However, Donald Trump may pose a threat to net neutrality, and this has greatly concerned large internet companies such as Google.  Google has long been a supporter of the Obama administration, and has supported regulation requiring net neutrality.  Without net neutrality, Google would lose money to internet providers like Comcast. Stigler would categorize Google's lobbying as rent seeking, as Google is seeking regulation about
a. how internet providers interact with complimentary goods (i.e. Google), and
b. how internet service is priced.
Since this issue is so important to Google, Olson would categorize Google as part of a privileged group- Google would be a benefactor because they would be incentivized to lobby for net neutrality by themselves. But, since Google donated much more to Hilary Clinton than Donald Trump, it may end up not getting its if regulations change.
Interestingly, Google shares have dropped since the election, while Comcast shares have increased by 7.7%.

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