This is as interesting as it is absurd. Wall Street Journal have drummed up a story based on Google seeking Edge Server Catching on service providers. Mix that with politics and Larry Lessig and the WSJ has a drama to drum up traffic and controversy.
Larry Lessig himself released"The made-up dramas of the Wall Street Journal", his ideas about the article, and you should read it before getting gang ho on Larry Lessig. He always stayed with his views, as far as I know.
"This is precisely the position that the Journal breathlessly attributes to me today. It represents no change -- no "softening" no "shift" in my views.
Now no doubt my position might be wrong. Some friends in the network neutrality movement as well as some scholars believe it is wrong -- that it doesn't go far enough. But the suggestion that the position is "recent" is baseless. If I'm wrong, I've always been wrong."
Google also laid out the facts in the following blog post, please read. There you will find more links to other valuable articles.