Justice Department backs Net service fees
WASHINGTON - AT&T Inc. and Comcast Corp. should be free to charge for priority Internet access, the US Justice Department said yesterday, dealing a blow to Google Inc.'s bid to block Web traffic fees.
The so-called Net neutrality rules sought by Google may lead to less consumer choice and higher prices for Internet service, the agency's antitrust division said in comments filed yesterday with the Federal Communications Commission.
Google has said that fees would put start-ups with little money at a competitive disadvantage, because they would not be able to afford to pay extra to offer customers video and data at the highest speeds.
The Justice Department disagreed and said increased regulation of Web traffic may hinder competition, echoing AT&T's stance.
"Precluding broadband providers from charging fees for priority service could shift the entire burden of implementing costly network expansions and improvements onto consumers," the department said.
Phone companies including AT&T and Verizon Communications Inc. and cable operators such as Comcast oppose efforts to bar such fees, which may help them recoup billions of dollars spent on building high-capacity networks.
The companies, which have not announced plans to start charging, have pledged not to block or degrade subscriber access to legal content or services, and say neutrality rules would stifle investment.
"We continue to urge policymakers to focus on the real issue of the broadband era, which is to promote the benefits of broadband services at affordable rates for all consumers," AT&T spokesman Michael Balmoris said.
The Justice Department plans to step in if the fees threaten Web competition.
That isn't enough to "ensure that cable and telephone companies do not destroy the Internet as we know it," the Open Internet Coalition said yesterday. Google and eBay Inc. help fund the Washington-based group.
AT&T shares rose 1 cent to $39.74. Verizon rose 31 cents to $42.26. Google dropped $4.28 to $523.52, and Comcast shares fell 10 cents to $25.67.
The Federal Trade Commission made a similar recommendation in a June report, saying that the proposed ban on priority-access fees may harm consumers.
