In a major blow to Internet firms such as Amazon.com and Google, the House Energy and Commerce Committee expects to scrap plans for "network neutrality" safeguards in forthcoming telecommunications legislation, congressional and industry sources said.

Instead, the panel would move a streamlined video franchising bill sought by AT&T and Verizon Communications, which are deploying video services that will compete with cable companies.

Under draft legislation recently floated by the panel, net neutrality would limit how much control high-speed Internet providers have over their networks.

Internet companies such as eBay, Microsoft and Yahoo worry that, without such restrictions, telecom firms such as AT&T, BellSouth and Verizon might act as content gatekeepers.

For their part, the Bells say they would not discriminate against competitors. The Bells technically support net neutrality, but only if they could offer premium tiers of broadband service favoring their own content -- something Internet companies oppose.


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