The debate on “regulating the Internet” has become more prevalent over the past few weeks. The Federal Trade Commission, Federal Bureau of Investigation, Central Intelligence Agency, the Pentagon, and now the White House have all sent indications to the private sector that regulating the Internet may be inevitable if data security and privacy standards are not better managed. The New York Times reported today that the Obama administration has “set out a framework for a new privacy code that moves closer to letting consumers use a one-click, one-touch process to tell Internet companies whether they want their online activity tracked.”
Opponents argue that regulating the Internet would stifle innovation and limit expressions on freedom of speech, but upon closer examination, would this really be the case? Self-regulation has ultimately failed across all industries. As the threat of cyber-hacking grows, and organizations monitor consumer behavior (elected politicians are even doing this now to tailor their message to voters), is regulation such a bad thing? When Henry Ford built the first automobile, vehicular laws were marginal, but as the growth and explosion of the auto industry flourish, regulation was needed. The path to regulation created a better mousetrap, because it forced auto manufactures to innovate and evolve their products. Compare a Model T to a car of today – the safety features alone were a byproduct of regulation. Regulation forced auto manufacturers to think outside the box of innovation to build a better mousetrap. Nowadays, cars go farther on gas; tanks don’t blow up like they did with the Ford Pinto; and tires don’t explode on a regular basis – all were a result of legislative action.