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Democratic lawmakers will unveil a piece of bicameral legislation Tuesday that would force the Federal Communications Commission to ban fast lanes on the Internet. The proposal, put forward by Senate Judiciary Committee chair Patrick Leahy (D-Vt.) and Rep. Doris Matsui (D-Calif.), requires the FCC to use whatever authority it sees fit to make sure that Internet providers don't speed up certain types of content (like Netflix videos) at the expense of others (like e-mail). It wouldn't give the commission new powers, but the bill — known as the Online Competition and Consumer Choice Act — would give the FCC crucial political cover to prohibit what consumer advocates say would harm startup companies and Internet services by requiring them to pay extra fees to ISPs. "Americans are speaking loud and clear," said Leahy, who is holding a hearing on net neutrality in Vermont this summer. "They want an Internet that is a platform for free expression and innovation, where the best ideas and services can reach consumers based on merit rather than based on a financial relationship with a broadband provider."

The Democratic bill is another sign that net neutrality is dividing lawmakers along partisan lines. In May, Rep. Bob Latta (R-Ohio) introduced a bill that would prevent the FCC from reclassifying broadband. A Democratic aide conceded Monday that the Leahy-Matsui bill is unlikely to attract Republican cosponsors. The fact that Republicans control the House make it unlikely that the Leahy-Matsui bill will advance very far. Still, the politics of net neutrality are obscuring the underlying economics at stake, according to the aide, who asked not to be named because he wasn't authorized to speak publicly.

"People are missing the point," the aide said. "The point is: Ban paid prioritization. Because that'll fundamentally change how the Internet works." FCC Chairman Tom Wheeler has said that he's reserving the reclassification option in case his existing plan fails to protect consumers. He has been reluctant to use that option so far, likely because it would be politically controversial. But increasingly, it seems net neutrality is divisive enough without him.

On Tuesday, the European court of justice, Europe’s supreme court, lobbed a grenade into the cosy, quasi-monopolistic world of the giant American internet companies. It did so by declaring invalid a decision made by the European commission in 2000 that US companies complying with its “safe harbour privacy principles” would be allowed to transfer personal data from the EU to the US. This judgment may not strike you as a big deal. You may also think that it has nothing to do with you. Wrong on both counts, but to see why, some background might be useful. The key thing to understand is that European and American views about the protection of personal data are radically different. We Europeans are very hot on it, whereas our American friends are – how shall I put it? – more relaxed.

Given that personal data constitutes the fuel on which internet companies such as Google and Facebook run, this meant that their exponential growth in the US market was greatly facilitated by that country’s tolerant data-protection laws. Once these companies embarked on global expansion, however, things got stickier. It was clear that the exploitation of personal data that is the core business of these outfits would be more difficult in Europe, especially given that their cloud-computing architectures involved constantly shuttling their users’ data between server farms in different parts of the world. Since Europe is a big market and millions of its citizens wished to use Facebook et al, the European commission obligingly came up with the “safe harbour” idea, which allowed companies complying with its seven principles to process the personal data of European citizens. The circle having been thus neatly squared, Facebook and friends continued merrily on their progress towards world domination. But then in the summer of 2013, Edward Snowden broke cover and revealed what really goes on in the mysterious world of cloud computing. At which point, an Austrian Facebook user, one Maximilian Schrems, realising that some or all of the data he had entrusted to Facebook was being transferred from its Irish subsidiary to servers in the United States, lodged a complaint with the Irish data protection commissioner. Schrems argued that, in the light of the Snowden revelations, the law and practice of the United States did not offer sufficient protection against surveillance of the data transferred to that country by the government.

The Irish data commissioner rejected the complaint on the grounds that the European commission’s safe harbour decision meant that the US ensured an adequate level of protection of Schrems’s personal data. Schrems disagreed, the case went to the Irish high court and thence to the European court of justice. On Tuesday, the court decided that the safe harbour agreement was invalid. At which point the balloon went up. “This is,” writes Professor Lorna Woods, an expert on these matters, “a judgment with very far-reaching implications, not just for governments but for companies the business model of which is based on data flows. It reiterates the significance of data protection as a human right and underlines that protection must be at a high level.”