The FCC Just Restored Net Neutrality. One Lawmaker Says It's Especially Important for Startups

Net neutrality aims to preserve online free expression by directing internet providers to treat all online communications equally That means internet service providers can't favor one web page over another. For example, an internet service provider couldn't slow down internet speeds for eBay web traffic and offer a quicker connection for those perusing Amazon's web pages.

"It is about ensuring that monopoly or duopoly broadband providers cannot squash competition, squeeze consumers, and squish the little guy," Markey told Inc. "Net neutrality is especially important for startups that could otherwise be shoved into online slow lanes, a serious disadvantage in today's digital world."

Net neutrality was enacted by the Obama administration in 2015 with the aim of maintaining an open and free internet. The measure was quickly rescinded two years later when Donald Trump assumed office. The Trump administration argued that net neutrality rules stifled innovation, chalking the measure up to federal overreach. 

Javier Palomarez, the CEO of the United States Hispanic Business Council, feels similarly. He tells Inc. that the proposed regulations may hurt businesses by "stifling innovation and hindering competitiveness." 

"The regulations introduce a lengthier and more expensive application and roll-out process for broadband infrastructure," Palomarez says. "In turn, this will hinder the rural and remote development of internet access and necessary infrastructure."

With or without net neutrality, rural America already suffers from some of the nation's worst broadband connectivity. About 22 percent of Americans in rural locations and nearly 28 percent of Americans on Tribal land lack basic broadband coverage, according to a 2020 report from the FCC.

Still, about half of entrepreneurs believe that net neutrality is integral to how they operate their company, according to a 2018 poll from Small Business Majority. The same poll reports that 56 percent of entrepreneurs did not favor the FCC walking back net neutrality in 2017.

"Without protections in place to keep the internet fair and open, small businesses are at risk of being put at a disadvantage when trying to compete with larger corporations that have the resources to ensure their websites receive special prioritization from their internet service providers," Small Business Majority CEO John Arensmeyer said in a statement.