The impact of net neutrality on America’s technology landscape: Jake Morabito on the ALEC – American Legislative Exchange Council failure

In a recent edition of the American Legislative Exchange Council’s Breakdown podcast, Lars Dalseide discusses net neutrality with Jake Morabito, director of the Task Force on Communications and Technology. The conversation focuses on the recent FCC ruling on net neutrality, which has raised concerns in the industry about its potential impact on the delivery of services to consumers.

Net Neutrality Principles

Jake Morabito explains that net neutrality is based on three basic principles: no content blocking, no content throttling, and no paid content prioritization. These policies are intended to ensure fairness in the way content is delivered over the Internet. However, Morabito notes that the methods of achieving these goals can often lead to regulatory burdens that ultimately harm consumers.

Historically, net neutrality debates have changed with changes in administrations. Under Trump, net neutrality laws were repealed, leading to significant deregulation. According to Morabito, despite concerns that this deregulation would lead to negative effects such as blocking or restricting content, no such problems have occurred in the six years since repeal. Nevertheless, the Biden administration restored Title II regulations under the Communications Act of 1934, which were originally intended to regulate telephone monopolies.

“Congress should actually legislate the Internet itself… since the mid- and early 2000s, we’ve kind of ping-ponged back and forth in every administration… in every administration, the rules change the way the Internet is governed, and for private sector companies that are trying to build the infrastructure to make the United States an economic powerhouse in the world, that’s impossible.” – Jake Morabito

Broadband investments

Morabito said these outdated regulations are not suited to today’s digital economy and could be hindering broadband investment. Since deregulation in 2018, broadband prices have fallen significantly while internet speeds have improved, countering arguments that strict regulation is necessary. He said the Biden administration’s push for these regulations could stifle further innovation and connectivity, especially in rural areas.

Various industry groups are already filing legal challenges to the FCC’s authority to impose these rules. The groups argue that the FCC lacks congressional authority to make such sweeping changes. Morabito suggests that Congress should legislate the internet itself, setting clear, permanent rules rather than relying on changing executive orders. That would provide stability for private-sector companies investing in infrastructure and ensure that innovation can continue to flourish.

The right approach to net neutrality

In conclusion, Morabito calls on Congress to step in and create a comprehensive legislative framework for net neutrality. This approach would put an end to the constant regulatory changes that each administration has implemented, creating a more stable environment for technological development and ensuring that consumers continue to enjoy high-quality internet services at affordable prices.

You can watch the interview episode here.