If you’re like most people, you’re hearing a lot about net neutrality but know almost nothing about it. It has something to do with the internet. President Obama likes it. Republicans don’t seem to get it, but they don’t like that Obama likes it.
That was me a few weeks ago. Then I read up on net neutrality, and now I’ve written a piece at Enhancing Capital that (I hope) familiarizes people with net neutrality and helps put the issue in some context. I also offer some advice for investors who might have positions in some stocks whose performance could be affected—namely, that both ISPs (like Comcast and Verizon) and large web content owners (like Netflix and Google) could see some volatility in the coming weeks and months, as net neutrality is approved by the FCC (which is quite likely), is fought by Republicans in Congress (also likely), and reveals its true nature (whether it will be a game-changer for the internet as we know it).
I’m not a big fan of net neutrality. I understand its proponents’ arguments and their fear that big, powerful ISPs “colluding” with big, powerful content owners could stifle competition. But I don’t like government meddling in markets, and frankly it only makes sense to me that barriers to entry become higher as an industry gets older. Trying to prevent this from happening will, I think, have some unfortunate consequences.