This is the net neutrality debate come to life. Should Cogent be allowed to do this? On the one hand, it's their servers and their networks; on the other hand, one could argue that people ought to have free access to information.
There are no laws to address this sort of thing yet. It's a big debate in the US and worldwide at the moment, but I suspect we're a few years off at least from any consistent rules being in place. Even if you guys do get some net neutrality laws in place, that only affects providers operating within the US; we'd just have to hope that other countries follow suit.
The internet broke nationality. Asking a question like 'is this legal?' on the internet means a whole lot less when half the people you're talking to live in another country and are subject to different laws.
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I wake up in the morning more tired than before I slept
I get through cryin' and I'm sadder than before I wept
I get through thinkin' now, and the thoughts have left my head
I get through speakin' and I can't remember, not a word that I said
- Ben Harper, Show Me A Little Shame
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