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A Stitch in Haste

A Stitch in Time Saves Nine...But Haste Makes Waste

A collection of real-world libertarian, individualist and laissez-faire rants on law, economics, politics, culture and other current events
by an average, everyday lawyer & investment banker and part-time pop scholar.

The "eBay - Google Checkout - Net Neutrality" Canard
(Why aren't you reading this at the new website?)

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Clash of the titans:
EBay customers won't be able to use the newly launched Google Checkout service to buy products, according to the auction Web site.

Google Checkout is now listed among other payment services such as Netpay.com, Qchex.com, ePassporte.com, and BillPay.ie that are not permitted on eBay.
...
Even if the current Google Checkout service doesn't exactly compete head on with PayPal, it could in the future.
As a reminder, eBay owns PayPal.

Some opponents of Net Neutrality, including some libertarians, are calling "Shenanigans!"
Isn't the business model that favors an affiliated online service over that of a competitor the very thing companies like eBay say they want to "safeguard" consumers from through network neutrality? Once again, what's good for the goose is not good for the gander.
This is, of course, utter nonsense.

Have you ever walked through a supermarket or convenience store and seen a refrigerator with the Coca-Cola logo all over it, with a little sticker on it that read something like: "This container is for the storage of Coca-Cola brand products only..."?

Now of course no libertarian would dare demand "Cola Neutrality" and ban such restrictions. That's an easy point to concede, precisely because it's a pointless point from the outset.

News flash #1: Coca-Cola is not a government-chartered monopoly. It is perfectly entitled to restrict its own privately-owned distribution channels, via private contracts, to its own products for the maximization of its own profits.

News flash #2: eBay is not a government-chartered monopoly. It is perfectly entitled to restrict its own privately-owned distribution channels, via private contracts, to its own products for the maximization of its own profits.

News flash #3: Verizon, AT&T, BellSouth and Comcast are not...

Oops. Never mind...

This is why the "eBay v. Google Checkout" analogy to Net Neutrality is patently absurd. For better or for worse, the "owners" of the Internet pipe, that are now so desperately opposed to Net Neutrality, are creatures of the state, that exist solely due to government fiat. As such, they are not simply entitled, carte blanche, to whatever profits their monopoly status might generate. It's no different from a rate-regulated electric utility. That which is spawned by government can be caged by government. And libertarians need lose no sleep over it.
Posted by Kip on 8 July 2006


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