Net neutrality is one of the most important global regulatory issues concerning the Internet today. Under net neutrality regulation, all packets are delivered with the same quality (speed). Without such regulation, Internet service providers (ISPs) are allowed to offer multiple lanes with different delivery quality levels. I provide an overview of the status of net neutrality regulation in the global economy (with a special focus on the US). I discuss recent trends and key issues in the debate. To inform this important policy debate, I develop an analytical framework to assess economic issues associated with the net neutrality regulation. In particular, I assess the impacts of regulation on innovation and investment incentive for various parties involved in the market. I also discuss the issue of interconnection among competing ISPs and analyse the optimal access charge from a regulator's perspective.