techpolicydaily.com

Is Google finally running out of goodwill with federal regulators and others?

First, the search giant ran afoul of the Department of Justice in its proposed settlement with the Authors Guild over its book scanning plans.

Now comes word that the FCC is investigating AT&T complaint’s that Google Voice may be improperly blocking calls in some rural areas. The Washington Post has it here.

On a company blog, Google’s Washington lawyer Richard Whitt posted a response, in which he basically says Google is blocking some callers from its free network application because they’re abusing it – using it for sex chat lines and free conference call centers and taking up bandwith that could be used by more needy users, like soldiers or homeless people.

But some say Google’s play-by-its-own-rules and “trust us” philosophy may be running out of steam. It’s one thing for two guys with a funny-sounding start-up to operate that way, of course; it’s entirely different when you’re the biggest and most powerful company in the digital world.

Here’s how John M. Simpson of Consumer Watchdog put it after the advocacy group announced its recent support of the Justice Department in the book scanning case:

“A single entity cannot be allowed to build a digital library based on a monopolistic advantage when its answer to serious questions from responsible critics boils down to: “Trust us. Our motto is ‘Don’t be evil.’”

Of course the big Internet companies don’t like it, because it would limit their ability to control who uses their broadband pipes and potentially, how much they can charge.

Now one of their biggest backers, Texas Republican Sen. Kay Bailey Hutchison, is coming to their aid.

The ranking member of the Senate Commerce, Science, and Transportation Committee has introduced an amendment to the Interior Appropriations bill that would prohibit the FCC from expending funds to develop and implement new regulatory mandates – namely its forthcoming net neutrality rules that chairman Julius Genachowski announced Monday.

Hutchinson

“I am deeply concerned by the direction the FCC appears to be heading,” she said in a statement. “Even during a severe downturn, America has experienced robust investment and innovation in network performance and online content and applications. For that innovation to continue, we must tread lightly when it comes to new regulations.”

Hutchison’s amendment is co-sponsored by some Republican heavy hitters, including Sens. John Ensign (R-Nev.), Sam Brownback (R-Kansas), David Vitter (R-La.), Jim DeMint (R-S.C.) and John Thune (R-S.D.).

Good Morning Silicon Valley has a great roundup of other opponents to the FCC’s plans to start enforcing net neutrality.

Bottom line is this: The fight’s already brewing over the FCC’s net neutrality plans. We’ll soon see how much clout the deep-pocketed Internet and communications companies – and their influential backers like Hutchison – have now that Democrats and the Obama Aministration rules Washington.