New privacy rules for Internet service would be illegal, providers say

As we spend more of our time and money on the Internet, the big companies responsible for connecting you to it are becoming more interested in using your browsing history and online habits in the same way that Google or Facebook does — turning that valuable behavioral information into ad dollars and using the data to power new online services to compete with Web companies. Now, Internet providers are working to thwart a federal proposal aimed at enhancing your online privacy, in the latest battle between industry and government regulators over the future of the Web.

The industry says new government privacy rules would constrain how its ad-supported programs can work, which would put it at a disadvantage relative to Internet companies. "The commission’s proposed rules," according to the wireless trade group CTIA, "would prevent ISPs from adopting this business model, while allowing other online entities to continue doing so." For better or for worse, that single sentence just sums up how similar Internet providers and Internet businesses have become.