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November 3, 2020 10:02 pm

The Tech Antitrust Problem No One Is Talking About: US Broadband Providers

An anonymous reader quotes a report from Ars Technica: After years of building political pressure for antitrust scrutiny of major tech companies, this month Congress and the US government delivered. The House Antitrust Subcommittee released a report accusing Apple, Amazon, Google, and Facebook of monopolistic behavior. The Department of Justice filed a complaint against Google alleging the company prevents consumers from sampling other search engines. The new fervor for tech antitrust has so far overlooked an equally obvious target: US broadband providers. "If you want to talk about a history of using gatekeeper power to harm competitors, there are few better examples," says Gigi Sohn, a fellow at the Georgetown Law Institute for Technology Law & Policy. Sohn and other critics of the four companies that dominate US broadband -- Verizon, Comcast, Charter Communications, and AT&T -- argue that antitrust intervention has been needed for years to lower prices and widen Internet access. Analysis by Microsoft last year concluded that as many as 162.8 million Americans do not use the Internet at broadband speeds (as many as 42.8 million lack meaningful broadband), and New America's Open Technology Institute recently found that US consumers pay, on average, more than those in Europe, Asia, or elsewhere in North America. The Department of Justice complaint against Google argues that the company's payments to Apple to set its search engine as the default on the iPhone make it too onerous for consumers to choose a competing search provider. For tens of millions of Americans, changing broadband providers is even more difficult -- it requires moving. The Institute for Local Self-Reliance, which promotes community broadband projects, recently estimated from Federal Communications Commission data that some 80 million Americans can only get high-speed broadband service from one provider. "That is quite intentional on the part of cable operators," says Susan Crawford, a professor at Harvard Law School. "These companies are extracting rent from Americans based on their monopoly positions." The United States has suffered, and broken up, telecom monopolies in the past. AT&T had a government-sanctioned monopoly for much of the 20th century, until it was broken up in 1984. The 1996 Telecom Act included rules for phone providers aimed at encouraging competition, but it excluded "information services," leaving broadband companies freer rein. The White House and Congress will both need to act in order to make US broadband more competitive. "Options worth considering include reversing some of the acquisitions that turned Comcast and others into nation-spanning giants and mandating that companies allow competitors to use their networks, as is common in Europe, [says Joshua Stager, a senior policy counsel at New America's Open Technology Institute.]

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