Which Companies Will Take a Hit From the Death of Net Neutrality?
After a groundbreaking ruling against the Federal Communications Commission and its net neutrality rules on Tuesday, companies that make up the highest amount of Internet bandwidth usage could begin to be charged by Web providers for taking up so much space.
An appeals court in Washington, D.C., on Tuesday ruled in favor of Verizon Communications (NYSE:VZ), saying that the FCC was overstepping its boundaries by preventing Internet providers from charging the companies that make up the most Web traffic. Now Verizon and other Internet providers can charge companies like Netflix (NASDAQ:NFLX) and Google (NASDAQ:GOOG) for using so much bandwidth.
The FCC does have a chance to go back to the drawing board and come up with revised net neutrality rules. FCC Chair Tom Wheeler has said that the regulator remains dedicated to the principles of net neutrality and that the agency will appeal the ruling. The rules were put in place by the FCC to make sure the Internet would remain a fair place for everyone, with no companies receiving preferential treatment or being unfairly blocked by Internet providers.