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Internet startups applaud states suing FCC over net neutrality

Oregon is one of more than 20 states trying to block the rollback of net neutrality by suing the Federal Communications Commission.

Oregon is one of more than 20 states trying to block the rollback of net neutrality by suing the Federal Communications Commission. The coalition of attorney generals say it would have significant consequences for businesses and consumers.

Founders of internet startups we talked to agree.

Cloudablity looks a lot like other internet startups in Portland. Collaborative areas, quiet places for thinking, and of course dogs are allowed. And much like other startups, the founder saw a need and capitalized on it.

“The United States is the world leader in renting computers instead of buying them, it is by far the biggest market, it was invented here,” said Cloudability founder Mat Elis.

Ellis keeps a timeline on the wall to show how the business started small and expanded rapidly.

“First it was just me, then we had three, in May we had seven and then over 100 today.”

Ellis is happy Oregon and other states are suing the FCC. The commission voted to end regulations that require service providers to treat content on the internet equally.

Background: FCC overturns net neutrality rules, but supporters pledge to continue fight

The lawsuit claims the rollback of net neutrality would allow service providers to block content, charge for access to content, and potentially slow the quality of content from providers that don't pay extra.

“They want a chunk of those companies revenue,” said Ellis. “You want to be prioritized you have to pay a fee.”

Founder of tech startup Puppet Luke Kanies says that cost would trickle down to customers.

“You don't know if Google is paying Comcast, you don't know if Netflix is paying Comcast. It costs you more in the end, but Netflix doesn't have a little thing saying here is the $2 I pay a month because Comcast charges me more,” said Kanies. “So it is hidden from the consumer, but it results in a less dynamic economy.”

Ellis says no net neutrality would mean smaller companies could never get a chance to start up.

“What we are doing would have been impossible in a world where companies had to pay internet service providers for access to customers," he said.

The lawsuit comes while Democrats in the Senate work to find votes for a measure that would block the repeal of net neutrality.

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