Quote:
Originally Posted by metalskins
Let's stick to real example as to how it pertains to the internet. One can access Netflix no matter if they're on Verizon, Spectrum, Comcast, or AT&T. Many consumers don't have a choice in where their internet service comes from. So, let's say their only choice is Comcast but Comcast either charges more for full speed Netflix or outright blocks them. Well, you as a consumer, have had your choice limited without NN.
Where I live, I have a choice between AT&T and Spectrum internet. AT&T has a bandwidth cap, so I can't go with them. Spectrum does not. However, both provide equal access to Netflix. Let's say Spectrum decides to go the way of Comcast and drops any connection to Netflix, well, I no longer have a choice to enjoy Netflix.
Or another choice, let's say Spectrum limits its users to Yahoo, but I want to use Google. Well, tough luck, I either have to pay extra to use Google, or I'm stuck using Yahoo search. Another choice being taken away.
The issue is, in capitalism, the thought is the best product wins out, and the bad ones die out. That's not the case when the ISP in your area is pretty much a monopoly. They can put out a crappy product and because they hold the keys, they force you to use a crappy product instead of you having a choice for a better product.
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But in your example if spectrum drops netflix they risk losing a substantial base to at&t even with a data cap. There is no incentive to drop it. Like wise if they try to charge to much for it then they lose the base to at&t.
There are few true monopolies and if the isps act in a monopolistic fashion there are tools in place to break those.
In both your examples you shut the door on another option (at&t) but if at&t or some other provider sees an opportunity for profit by providing yahoo or google or netflix they will offer it. That is how competition works.