Google Goes to Washington

The top Web companies are going to have to live to fight another day in Washington.

Congress last week rejected a measure aimed at prohibiting Internet service providers from selling differing levels of access to their networks. A similar bill that mandates what's known as Net neutrality is expected to fail in the Senate.

For Web companies, the defeat comes on an issue that they say is hugely important. Companies like Google (GOOG Quote), Yahoo!(YHOO Quote) and Barry Diller's IAC/InterActiveCorp(IACI Quote) have argued that without Net neutrality mandated by law, Internet service providers could provide preferential treatment to Web sites that pay fees, and leave users who don't with slower access.

Opponents of Net neutrality -- including the politically well-connected telecommunications and cable industries, such as AT&T (T Quote) and Comcast (CMCSA Quote), have argued that such fears are groundless.

The Web companies pulled out all the stops to win congressional support. Google co-founder Sergey Brin even traveled to Washington to personally lobby members of Congress. eBay (EBAY Quote) CEO Meg Whitman urged users to show their support for net neutrality to members of Congress.

"It is hard to believe, but lawmakers in Washington are debating whether consumers should be free to use the Internet as they want in the future," the largest Internet auction site says on its Web site. "The phone and cable companies are using their political muscle to promote legislation that would divide the Internet into a two-tiered system -- a 'Pay to Play' tier for large companies that can afford the fees and a slow lane for everyone else."

Google, eBay, Yahoo! and Amazon(AMZN Quote) even formed a coalition with the dramatic-sounding name Save Our Internet to press their case.

Joining the cause of the Web companies was the liberal advocacy group MoveOn.org and a group of musicians including the rock group REM, country singers the Dixie Chicks and rapper Q-Tip.