"Net neutrality" rules are opposed by Justice

AT&T and Comcast should be free to charge for priority Internet access, the U.S. Justice Department said, dealing a blow to Google's bid to block Web traffic fees.

The so-called net-neutrality rules sought by Google may lead to less consumer choice and higher prices for Internet service, Thomas Barnett, the department's antitrust chief, said Thursday after filing comments with the Federal Communications Commission.

Google has said the fees would put startups with little money at a competitive disadvantage because they wouldn't be able to afford to pay extra to offer customers video and data at the highest speeds. The Justice Department, echoing AT&T's stance, said increased regulation of Web traffic may hinder competition.

"Imposing regulations in the name of neutrality could, if you're not careful, inhibit that kind of development and lead to fewer choices for consumers," Barnett said.

Phone companies including AT&T and Verizon Communications and cable operators such as Comcast oppose efforts to bar such fees, which may help them recoup billions of dollars spent on building high-capacity networks.

The companies, which haven't announced plans to start charging, have pledged not to block or degrade subscriber access to legal content or services, and say neutrality rules would stifle investment.

"We continue to urge policymakers to focus on the real issue of the broadband era, which is to promote the benefits of broadband services at affordable rates for all consumers," AT&T spokesman Michael Balmoris said Thursday.

The Justice Department will step in if broadband fees appear to "restrict competition in an unreasonable manner," Barnett said.

"If we saw evidence of such a thing, we would investigate it thoroughly and if we found a basis for a violation, we would pursue it," he said.

That isn't enough to "ensure that cable and telephone companies do not destroy the Internet as we know it," the Open Internet Coalition said Thursday. Google and eBay help fund the group.

The Federal Trade Commission made a similar recommendation in June, saying the proposed ban on priority-access fees may harm consumers.