#DealerNeutrality

You’ve probably heard all the brouhaha lately about “net neutrality” and its recent demise at the hands of Ajit Pai and the FCC. In my opinion, it’s a more complex issue than the multi-million-dollar avalanche of spam support suggests. (You can read more of that opinion here, if you like.) But it does raise some very interesting questions regarding monopolies, infrastructure investment, disruption, and opportunity costs. Some of those questions might be worth considering in the auto-industry context.

The proponents of Net Neutrality believe that your Internet Service Provider should be treated like a public utility or a public-supported railroad. But there’s a flaw in that argument: in most cases, the infrastructure owned by your ISP was built with private funds for private ends. Should that infrastructure be regulated like a utility even though it didn’t start that way?

Let’s expand this heretical line of thinking to something highly applicable to the car biz: Tesla and its dealership problem.