The Federal Communication Commission (FCC) vote last week to repeal net neutrality, which essentially requires Internet Service Providers (ISPs) to treat all the data flowing through their “pipes” equally, has raised howls of protest from individuals, politicians and businesses. A number of states’ attorney generals are threatening to file a lawsuit to block the action. The danger is that if ISPs are free to prioritize data flows from those that can afford to pay, that almost inevitably means slower speeds for everyone else. With study after study showing that even the slightest lag in load times or site performance can kill an online or mobile sale, retailers have a right to be nervous. The RTP team discusses the likely impact on innovation, startups and the state of retail industry competition.
Debbie Hauss, Editor-in-Chief: Ending net neutrality could literally rattle the foundation that our country was built on. It basically hampers innovation and entrepreneurship. We may not see unique and innovative ideas rise to the top of our searches and feeds unless they are backed by very large companies, such as Amazon, that can afford the investment potentially demanded by ISPs moving forward. “Shark Tank” and similar TV shows that spotlight entrepreneurs, startups and small, regional brands may simply disappear. That could be just one of the reasons why “Shark Tank” star Mark Cuban is vehemently opposed to the elimination of net neutrality. A recent CNBC post stated: “Cuban, unlike most of Silicon Valley, has maintained for years that private companies should compete for promotion on the Internet — not depend on FCC rules to mediate the entire ecosystem.” The same article quoted Michael Beckerman, President and CEO of the Internet Association: “Consumers have little choice in their [Internet Service Provider], and service providers should not be allowed to use this gatekeeper position at the point of connection to discriminate against web sites and apps.”
Adam Blair, Executive Editor: The repeal of net neutrality is one of those allegedly “pro-business” decisions that will, in all likelihood, be a disaster for a whole bunch of businesses — never mind the impact on consumers. As Qubit founder Graham Cooke says in this Digital Commerce 360 article, “Airbnb, Uber and TripAdvisor were once young and fragile. Without net neutrality, they may never have been able to get off the ground, and yet we can’t imagine our world without them.” Providing every company, big or small, powerful or weak, with the same unfettered access to what has become the world’s primary communications channel is Free Enterprise 101. Trusting that ISPs will continue to treat all traffic the same, and will not give preferential treatment to those it can charge higher fees to, is like trusting a hungry wolf not to eat a chicken. The FCC has just opened the gate to the chicken coop.
Glenn Taylor, Senior Editor: RSR’s Brian Kilcourse shared a valid analogy about net neutrality when he said that an Internet without regulation within retail was akin to a highway system that would enable Walmart to buy its own priority lanes for traffic to drive its own trucks through. He added this prescient quote from Dwight Eisenhower: “Our unity as a nation is sustained by free communication of thought and by easy transportation of people and goods. The ceaseless flow of information throughout the Republic is matched by individual and commercial movement over a vast system of interconnected highways crisscrossing the Country and joining at our national borders with friendly neighbors to the north and south.” Despite the uncertain outlook, I’m encouraged that Kilcourse also expressed hope that there’s still no stopping the top innovators from continuing to deliver good ideas since consumers inevitably demand it.
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Klaudia Tirico, Features Editor: I’m going to start by saying what a crazy year it has been for retail and the U.S. in general. We’ve experienced a “retail apocalypse” scare, more bankruptcies than ever, the decision by the U.S. government to not participate in the Paris Climate Accord, starving polar bears and now the repeal of net neutrality (and much more that is way too depressing to mention). We all deserve an extra glass of wine or two during the holiday season, don’t you think? Ending net neutrality — for lack of a better word — is the dumbest idea since pet rocks. Retail has been molded into a highly innovative industry and repealing net neutrality literally puts a stop to innovation and disruption. It simply isn’t fair — especially for small businesses that have been working hard to compete with big players in the industry. Now they have a whole new level of competition to face. Even from a mobile point of view, companies that have worked hard to maintain successful shopping apps and services can really struggle if net neutrality is halted. It’s truly unfortunate.
