Citing instances of espionage and surveillance of its customers, Google announced in coordinated fashion yesterday that they are no longer willing to continue censoring results on Google.cn, and threatened that it might withdraw operations from China entirely. Some are wondering if Google would actually walk away from the China market. Frankly, China routinely leverages the size of its market and counts on the fact that no business dares to give up a market of that size. But when businesses are willing to play rough and threaten exit they are more likely to get positive results than when they kow-tow. That being said, you don't make the move Google did without a plan. And that makes me think we might be witnessing the precursor to a major development in the application of trade principles to Internet governance.
IGP noted early on how progressive companies like eBay were viewing the content blocking and filtering aspects of the net neutrality debates as having broader economic impacts. Now it seems Silicon Valley is picking up on this emerging issue.