The Guardian has published a good report on Google’s foray into political lobbying and its growing web of high-level connections. Like most other companies of its size and maturity, Google has established a political action commitee (PAC) and hired an army of well-connected communications and public relations officials to help protect/promote its business interests. It’s neither surprising nor entirely dubious that Google is ramping up its political influence machine–failing to do so would only cede key political territory to less-principled rivals and that, in turn, could spell disaster with so many key Internet policy issues hanging in the balance. What really matters is what Google chooses to do with its newfound wealth and influence and so far things look good.

As it stands, Google’s number one issue is “net neutrality” and I believe that Google has got this one right. For readers who haven’t heard, net neutrality is the principle enshrined in the architectural design of the Internet that has so far ensured that all content and services on the Web are essentially treated the same. In other words, packets of data move around the network in the most efficient way possible, irregardless of whether those packets originate from Google’s servers, Microsoft’s servers, or uncle Joe’s servers–everyone’s packets are equal on a free and open platform.

Now, telecom companies want transform the Internet into something akin to a toll-highway–providing tiered levels or service where bandwidth and content-delivery rights are effectively auctioned off to the highest bidders. Above all, they want large Internet services companies like Google and Microsoft to pay hefty fees to have their services delivered to customers more expeditiously than the services of those companies or users who choose not to pay (or cannot afford to pay) the freight. This, in effect, makes telecom companies gatekeepers for the types of services that will thrive on the Internet. It creates an uneven playing field and, by placing small firms with shallow pockets at a distinct disadvantage, it potentially destroys the very property of the Internet that has made it a hothouse for innovation.

Google CEO Eric Schmidt has made his company’s opposition to the telecom industry’s plans well-known (despite the fact that Google, with its riches, could arguably do well in a non-neutral Internet). Like others, Schmidt has warned against breaking the historic model of the Internet and thereby extinguishing the fire of innovation that has spurred countless new businesses and services. But when Don Tapscott and I interviewed Schmidt for Wikinomics, he made another good point: there is a great irony in what the telecommunications lobby is doing. Imposing tolls on content providers could hinder their ability to develop viable business models for delivering free (advertising-supported) content and services to Internet users at a time when free sites and services such as Flickr, Google, Skype, and YouTube are in fact the reason why customers are upgrading to broadband. “Providing tiered service is not good strategy,” he said, “It could materially and negatively affect the adoption rate.”

The Guardian alludes to some of the other big political fights that Google is facing, including the copyright issues surrounding its BookSearch service and censorship issues in China (the one issue where Google betrayed its core values by following the lead of competitors such as Yahoo! and MSN who censor their search results to avoid upsetting the Chinese government and thus risk losing out on the growing Chinese market). Here’s a snippet from the article:

Is the self-appointed organiser of the world’s information about to become involved in politics? Or is it just a maturing business beginning to realise that the next challenge may well come from regulators and governments?

Ricardo Reyes, Google’s senior manager of global communications and public affairs, maintains that the company will not follow party lines but will focus on specific issues that affect the internet and therefore the business.

“We started this NetPAC in order to be able to support office-holders and candidates who share our vision of promoting and preserving the internet as a free and open platform for information, communication and innovation,” he says. “Google has thrived thanks to the opportunities of the free market so we believe it is important to look at policymakers as they make decisions that impact our users and businesses.”