Netflix, Inc. (NASDAQ:NFLX) has joined hands with many internet companies to launch an online protest against Federal Communications Commission’s (FCC) proposed changes to Net Neutrality after which, the Internet will be divided in Fast and Slow Lanes. Netflix, Inc. (NASDAQ:NFLX) being solely dependent on the internet speed sees a potential threat to its services from these changes. Discussing this issue in a program on Fox Business, Former FCC Commissioner Robert McDowell said that these protests and tensions will be diluted once FCC passes the order.
“[…] When I was a commissioner at the FCC for seven years we went through a couple of iterations of the Net Neutrality debate and leading up to FCC action we always saw activity sort of like this, and I will guarantee you that once the FCC does come out with an order probably in December, everything will go quiet, it will be fine back to normal […],”said McDowell.
McDowell said that Netflix is the leading player in terms of Internet traffic in the US. Sometimes, Netflix, Inc. (NASDAQ:NFLX)’s traffic goes to 34% of the total traffic in the US during the peak times. To accommodate this traffic, Netflix has to pay more cost to cable companies and phone service provides. McDowell said that Netflix, Inc. (NASDAQ:NFLX) wants to cut this cost and is forcing FCC to give a ruling in its favor rather than following the free market trend. He also said that good thing about today’s internet is that it is working and nurturing without the pressure of the governments.
McDowell claimed that FCC has no authority to do anything regarding the Internet rules and the fast and slow lanes news is a myth. He said that elevation in strict rules and litigations have a negative effect on the investments in the internet industry.
Carl Icahn’s Icahn Capital LP owns over 1.7 million shares in Netflix, Inc. (NASDAQ:NFLX)
Disclosure: None
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