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Net Policy



Here's a new report from Forrester Research about Net policy.  I think you
can access the full report online at
http://www.forrester.com/ER/Print/Research/Report/0,1338,9051,FF.html

Here's an excerpt:

PUBLIC POLICY'S EXPANDING ROLE IN THE NET'S DEVELOPMENT
The casual Net governance of the past will give way to highly politicized
policy battles as powerful financial interests, issue groups, and
impassioned voters weigh in on the process. The exploding volume of online
commerce, the increasing magnitude of change brought on by innovative Net
business models, and the growing role of the Internet in our daily lives
add up to one conclusion: The stakes have become too high to leave
Internet decisions outside the democratic political process.


The Internet's big bang is creating new business models, forms of
property, and modes of communication. But those light-speed innovations
threaten to end up like Russian capitalism if they outpace the basic legal
framework necessary to keep the Net from turning ugly and limiting its own
growth.
Forces Driving Expansion Of The Government's Role

Five factors will drive government's more activist role in the Internet
economy:

Consumers' need for "security." Individuals need to feel comfortable and
secure on the Net before they will participate. Two-thirds of consumers
already worry about their online privacy and shop online less as a
result.  This confusion is compounded by the hubris of many Net
startups. The belief that they have an "Internet manifest destiny" leads
companies like DoubleClick to stumble into hornets' nests of controversy,
stirring up calls for the government to step in.


Businesses' desire for stability. Before companies turn their business
models inside out or invest in Web-based technologies, they need to
understand the governing legal and accounting framework. The recent battle
over the use of bots to vacuum up price information from eBay is just one
example of how companies will look to the courts and Congress for rulings
and clarification.


Losers seeking relief. With eCommerce accounting for a quarter of the
economy by 2004, companies that lose out will claim their competitors have
been unfair. Just as US automakers asked for strict import quotas when
Japanese competition heated up, casualties in the Internet economy will
seek a helping hand from government.


Winners wanting to cement their lead. Online success stories won't all be
free-market purists, either. Leading firms have always turned to
government to shelter them from competition, and in the hypercompetitive,
undifferentiated online world, companies will do the same. Amazon.com and
priceline.com have already turned to government-issued patents to hinder
the competition. Others will find themselves supporting regulation to stop
small, bottom-feeding companies from tainting the industry with shady
practices.


The Internet's role as official channel. Government functions such as
driver's license renewal, permit applications, and even voting will
rapidly move online.  This growing role as a channel for official
government business will provide an increased justification for regulation
of the Internet.



************************************
Lisa Potter
School of Information and Library Science
University of North Carolina at Chapel Hill