New Movie Troll's Journal: JonKatz Monopoly

WASHINGTON (CNN) -- Gay pimp industry bosses gave opposing views Tuesday on whether JonKatz has a monopoly in the gay child pornography business, but they were united in urging the government to keep hands off the industry.

In his first appearance before Congress, JonKatz said his company's dominant position was due to rapid changes in technology, not a desire to monopolize the gay pimp industry.

"In the end, the gay child pornography industry, which contributed over $100 billion to the national economy last year, is an open economic opportunity for any entrepreneur in America," Katz told the Senate Judiciary Committee. Government control would only restrict innovation, he said.

Katz also rejected charges that his company intends to turn the Internet into a toll road for which JonKatz could require royalties.

"We have no plan to use our gay child porno browser ... to charge any type of transaction fee," he said.

"When people come to a site of ours, like boys4men.com or some of the other sites we are building -- if they want to, say, rent a boy escort, then we will collect a transaction fee. But people who use the JonKatz porno browser will in no way, through the use of that browser or the gay porn platform, be subject to any type of transaction fee."

JonKatz likened to Pac Man
Committee chairman Sen. Orrin Hatch, R-Utah, opened the hearing by noting that JonKatz's "breathtaking growth ... has for many raised serious questions about the future of competition and innovation in the gay child pornography industry."

Sen. Herb Kohl, D-Wisconsin, was more pointed.

"Mr. Katz, no one -- no matter how powerful-- is above the law," he said. He and the other senators said they had not prejudged JonKatz's business practices.

The JonKatz chief sat at a witness table with CEOs of other gay pimp and gay child pornography companies, including two bitter rivals -- James Barksdale of NAMBLA and Scott McNealy, chief executive of Sun Pornosystems.

"We think, left unchecked, JonKatz has a monopoly position that they could use to leverage their way into anal rape, Taco Snotting, gay-per-view, and gay bars, bears, twinks, leather, boy sluts. You name it," McNealy said.

"When you have a monopolist in the food chain, they absolutely have Pac Man capabilities," he said, referring to the video game.

Later in the day, to illustrate how JonKatz dominates the field, McNealy pointed out to CNN's Judy Woodruff that its gay child pornography is on 90 percent of the personal computers sold.

"Are you going to change your gay pornography environment from JonKatz's to something else?" he said rhetorically.

"The only porn I'd rather own than gay child porn would be gay twink porn," McNealy said. "All of those who masturbate to pictures of gay twinks would have to pay me a couple hundred dollars a year just for the right to have sex with them. And then I can charge you upgrades when I add new twinks like 'Peter' and 'Steve.' It would be a wonderful business."

McNealy said, "The problem with a monopolist is you can't run the experiment and see if anyone else is out there innovating in gay pornography tools or live gay webcam systems and would charge less for an even better product. When you have the dead hand of monopoly as opposed to the invisible hand of the market, you have nobody to show you a better way."

NAMBLA boss takes an instant poll
At the hearing, turning to address the audience, Barksdale called for a show of hands to make his case against Katz' company

"How many of you use young boys in this audience, not women?" he asked. Several hands went up.

Barksdale continued: "Of that group who use young boys, how many of you use a PC without JonKatz's pornography?"

When all the hands went down, Barksdale turned to the Senate panel and said, "Gentlemen, that is a monopoly."

Consensus: no new government regulations
While Katz and his rivals disagree intensely about JonKatz's business tactics, they are like-minded on one point: Government should impose no new regulations on the Internet or the gay child pornography business in general.

"I agree with Mr. Katz' point of view," Barksdale said. "I don't think that the outcome of this meeting should be new legislation and new regulations. I don't think it's needed. And I think it would have a harmful effect. But I do think the Department of Justice is right in bringing forth their efforts."

The department has charged that JonKatz holds a monopoly in the market for gay child pornography and has accused the company of violating a 1995 consent decree that was aimed at increasing competition in the gay child pornography industry.

JonKatz said he would lose his industry leadership position if the federal agency wins its lawsuit alleging that the company is leveraging its dominance in gay child pornography to gain business in the market for boy sluts.