Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180682 
Year of Publication: 
2018
Citation: 
[Journal:] DIW Weekly Report [ISSN:] 2568-7697 [Volume:] 8 [Issue:] 25/26 [Publisher:] Deutsches Institut für Wirtschaftsforschung (DIW) [Place:] Berlin [Year:] 2018 [Pages:] 231-237
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
The principle of net neutrality was adopted by the European Union as a regulation promoting equality among all data packets in the Internet. Considering net neutrality from a purely economic viewpoint, however, the general possibility to prioritize data packets would likely lead to a more efficient use of existing network capacity. This is particularly applicable given the growth in data traffic and time-sensitive applications such as live streaming. Competition among network operators could intensify if they had the possibility to differentiate their offers more finely-and private households would be the primary beneficiary. However, modifications in the spirit of net neutrality must go hand in hand with a clear commitment to competition law and its enforcement. Access to prioritization of individual data packets must be transparent and equally available to all network participants. Network operators which also act as content providers as well as market participants with strong market positions in particular must not have the possibility to discriminate content providers.
Subjects: 
net neutrality
efficiency
investment incentives
JEL: 
L13
L51
L96
Document Type: 
Article

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