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Netflix Throttling Internet Providers
I propose to assess whether or not it was ethical for Netflix Inc to throttle the internet networks of AT&T and Verizon. On the one hand, it was ethical because, in the case of Netflix throttling, it was not harmful to customers, AT&T and Verizon were charging an overage fee to customers, and open internet order applies only to internet providers and not streaming service companies. On the other hand, it was unethical because Netflix did disclose to the companies and public that it was throttling their networks, restricting data cap is bad for customers and the internet in general, and Netflix only throttled AT&T and Verizon networks. Ultimately, I will justify my decision as to the ethical nature of Netflix throttling the AT&T and Verizon networks by systematically processing them through the four steps of the Potter Box.
The key facts surrounding the ethical challenge facing Netflix inform the context of the ethical issue. Netflix has been under the scrutiny of the Federal Communication Commission (FCC) and the public over the controversial issue of regulating the internet of two networks. According to Knutson and Ramachandran (2015), in 2016, Netflix was exposed for data capping customers’ videos using AT&T and Verizon networks. It did this secretly without notify either the companies or clients. It, however, did not throttle, Sprint, and T-mobile networks. Knutson and Ramachandran (2015) assert that Netflix cited that AT&T and Verizon charge an overage fee to clients who exceed their data plan. This is unlike Sprint and T-mobile networks who slow the internet. The next section will evaluate how Netflix’s actions violate good values.
My values relate to Netflix’s ethical issue. One of my primary values is integrity, being honest in all actions, even in comfortable situations. Netflix’s throttling network providers without informing them is associated with a lack of integrity. My second value is fairness, treating everyone equally and favorably. This is also related to Netflix’s ethical challenge as it was unfair to data cap only specific internet providers. My other value that relates to the issue is accountability, the act of taking responsibility for one’s action. Netflix offended its clients and violated internet neutrality. Therefore, my value of accountability can help address the Netflix challenge. Similarly, the other values will help the company avert such challenges in the future, and that why find them all important. A moral theory can also help address the ethical challenge.
The moral theory of utilitarianism illuminates on the ethical issue in Netflix. I found utilitarianism to be the best theory because it addresses the ethical dilemma that faced Netflix. Lyons (2) points out that utilitarianism stipulates that one can determine right from wrong by examining the outcome. This can be applied to Netflix’s ethical issue by examining each choice’s outcome, throttling, or not throttling. Its action offended other network providers and was discriminating. This violates the theory’s principles of happiness of everyone counts, equality, and action is right if it produces happiness. Nevertheless, more light will be shed into Netflix’s ethical challenge if the stakeholders affected are examined.
Netflix’s ethical issue concerns multiple stakeholders that I am loyal to. I have great interest to online users, internet providers, and the government. These are key stakeholders who have been most affected with Netflix’s action of throttling their internet. Online users have received bad service because the data capping undermines video quality. The internet providers have had their data capped, and thus their business interfered with. The government, FCC, on the other hand, has had its regulations of open internet order and neutrality violated.