U.S Federal Communications Commission to vote on Net neutrality: AT&T, Amazon and Netflix are all expected to be affected.
It’s taken a year to get to this stage, but Thursday sees the vote and subsequent ruling announced by the FCC concerning Net neutrality.
In the markets, the stocks that are expected to react are those relying on the internet for their core business, such as utility companies like AT&T, online retailers like Amazon, and content providers like Netflix.
Briefly, the definition of net neutrality as provided by USA Today is, “the principle that Internet service providers should give consumers access to all legal content and applications on an equal basis, without favoring or blocking some sources. It also prohibits Internet service providers (ISPs) from charging content providers for speedier delivery of their content on "fast lanes" or deliberately slowing the content from content providers that may compete with ISPs.’
Basically, it will regulate ISPs similarly to a normal utility company and is supposed to give all content companies a level playing field of content delivery so that home consumers benefit from high-quality broadband and content that has not been discriminated against. Companies such as Google, Apple, Netflix and Amazon support the proposal.
The proposal for the protection of the open internet is the brainchild of FCC Chairman Tom Wheeler and Thursday sees the FCC vote on the ruling. However, many companies are against the proposal and are planning to take the issue to appeal court if it goes ahead. Those against the plan are AT&T alongside other ISPs.
Five members of the FCC will vote; three are already voicing their support, giving expectations that it will go ahead.
U.S markets opening Thursday afternoon GMT expect some movement on the stocks concerned.
MT4 chart: Amazon
MT4 chart: AT&T
MT4 chart: Netflix
Trade stock CFDs on STOCK.com with full training given to all clients