This morning the Associated Press dropped a little bomb in the world of hardcore online users that probably deserves the attention of everybody else, too. It reported the results of its own investigation from several cities, including Philadelphia, that seem to confirm allegations that Philly-based Comcast Corp. (NASDAQ: CMCSA) has been preventing some of its high-speed online customers from uploading large blocs of data through the file-sharing service BitTorrent. (See the full story here and sidebar here.) This interference by Comcast is not illegal. And it could be justified as a way of keeping some users' heavy online activity from affecting the Internet speeds of others.
So why does this matter? The AP story, written by Ron Harris, Brian Bergstein, Kathy Matheson and Deborah Yao (in Philadelphia), summarizes the implications:
The interference, which The Associated Press confirmed through nationwide tests, is the most drastic example yet of data discrimination by a U.S. Internet service provider. It involves company computers masquerading as those of its users. ... The principle of equal treatment of traffic, called "Net Neutrality" by proponents, is not enshrined in law but supported by some regulations. Most of the debate around the issue has centered on tentative plans, now postponed, by large Internet carriers to offer preferential treatment of traffic from certain content providers for a fee.
In response, according to the AP, Comcast spokesman in Philadelphia, Charlie Douglas, reiterated that the company "does not block access to any applications, including BitTorrent." But Douglas did confirm, as Comcast has confirmed in the past, that Comcast uses "sophisticated methods" to keep Internet connections running smoothly.
The financial and legal implications of such actions are much harder to judge for both Comcast and BitTorrent. The AP identifies several other file-sharing services that seemingly would be, or have been, affected. "If widely applied by other ISPs, the technology Comcast is using would be a crippling blow to the BitTorrent, eDonkey and Gnutella file-sharing networks. While these are mainly known as sources of copyright music, software and movies, BitTorrent in particular is emerging as a legitimate tool for quickly disseminating legal content."
