Interconnected digital network representing net neutrality and platform pricing dynamics.

Net Neutrality Under Fire: How Platform Pricing Could Change the Internet as We Know It

Soraya Malik in Tech & Innovation June 2025 • 4 min read.

"A deep dive into the evolving battle over net neutrality and how platforms like Google are reshaping the digital landscape."

Net neutrality, a principle advocating for equal access to the internet regardless of content, has been a hot topic for over two decades. Regulations enforcing this concept are in place worldwide, particularly in the U.S. and Europe. At its core, net neutrality prevents Internet Service Providers (ISPs) from engaging in two-sided pricing—charging both content providers (CPs) and users for access.

ISPs argue that charging CPs could help fund infrastructure upgrades needed to handle the massive data flow from content-rich sites to users. They propose ideas like 'direct compensation' or 'fair share' to justify these charges. However, this perspective overlooks a critical player in the digital ecosystem: platforms.

Platforms, such as Google News, operate outside net neutrality regulations, freely using two-sided pricing models. These platforms connect users and CPs, managing cross-network effects in ways that traditional ISPs cannot. The real question is: How do platform pricing strategies interact with ISPs under different net neutrality scenarios?

Understanding the ISP-Platform Dynamic: A Two-Sided Pricing Revolution?

Interconnected digital network representing net neutrality and platform pricing dynamics.

To analyze this complex interaction, a recent study examined the effects of enforcing or exempting access ISPs from net neutrality rules when platforms are present and use two-sided pricing. The study models a scenario where both users and content providers rely on ISPs to access the internet and a platform that connects them.

The central hypothesis is that platform-based, two-sided pricing significantly influences the role of ISPs, particularly when ISPs are either allowed or restricted from using similar pricing models. Initial findings suggest that platforms are currently extracting surplus value from content providers under existing net neutrality rules.

Current State: Platforms profit by charging CPs, while ISPs are restricted.
Potential Shift: If ISPs could also charge CPs, platforms might lose some of their advantage.
The Question: How does allowing ISPs to implement two-sided pricing change the overall digital economy?

The research models interactions between users, ISPs, and platforms. Users gain value from content, ISPs provide access, and platforms facilitate connections. By analyzing these relationships, the study aims to uncover the economic impacts of different regulatory approaches to net neutrality and platform pricing.

The Future of Net Neutrality: Balancing Innovation and Access

This research underscores the need to rethink net neutrality in the age of powerful digital platforms. As platforms continue to shape how content is created, distributed, and consumed, understanding their pricing strategies is crucial for creating a fair and sustainable internet ecosystem. The decisions we make today will determine the future of internet access, innovation, and economic opportunity for all.

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This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2401.14791,

Title: Isp Pricing And Platform Pricing Interaction Under Net Neutrality

Subject: econ.th cs.ni

Authors: Luis Guijarro, Vicent Pla, Jose Ramon Vidal

Published: 26-01-2024

Everything You Need To Know

What is net neutrality and why is it important?

Net neutrality is the principle that advocates for equal access to the internet, regardless of content. It prevents Internet Service Providers (ISPs) from engaging in two-sided pricing, ensuring all content is treated the same. This is important because it prevents ISPs from prioritizing certain content or charging content providers (CPs) extra for faster access, thereby maintaining a level playing field for all websites and services and for the users to access it.

How do platforms like Google News impact net neutrality?

Platforms such as Google News operate outside net neutrality regulations and employ two-sided pricing models, connecting users and content providers (CPs). They can charge CPs, influencing the flow of information and potentially extracting surplus value. This is a significant factor because it introduces a layer of complexity to the net neutrality debate, as platforms are not subject to the same rules as Internet Service Providers (ISPs). This raises questions about fairness and competition in the digital ecosystem.

What are the implications of allowing Internet Service Providers (ISPs) to use two-sided pricing?

If Internet Service Providers (ISPs) could also charge content providers (CPs), platforms might lose some of their advantage. This could lead to changes in the digital economy, potentially shifting power dynamics between ISPs, platforms, and CPs. It may impact how content is distributed and accessed, as well as the costs for both users and content creators. The study suggests that such a shift could alter the current landscape where platforms profit by charging CPs while ISPs are restricted.

How does the interaction between users, Internet Service Providers (ISPs), and platforms shape the digital landscape?

The study models the interactions between users, Internet Service Providers (ISPs), and platforms. Users gain value from content, Internet Service Providers (ISPs) provide access, and platforms facilitate connections. This three-way relationship significantly influences how the internet functions. The study analyzes how different regulatory approaches to net neutrality and platform pricing impact these relationships, aiming to uncover the economic impacts of different scenarios. The decisions made today will determine the future of internet access, innovation, and economic opportunity for all.

What is the main question that this research tries to answer?

The research aims to understand how platform pricing strategies interact with Internet Service Providers (ISPs) under different net neutrality scenarios. The central question revolves around the economic impacts of allowing or restricting ISPs from using two-sided pricing when platforms are present. By analyzing the interactions between users, ISPs, and platforms, the research seeks to determine how these pricing models affect the overall digital economy and the future of net neutrality.