Appeals court upholds California’s right to enforce net neutrality law
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Protesters pass the FCC headquarters as they march to the Commission meeting regarding net neutrality proposal, May 15th, 2014, Washington DC.
Bill O’Leary The Washington Post | Getty Images
The Federal Appeals Court upheld Friday’s decision by a lower court, permitting California to keep its net neutrality law in force.
This decision will ensure that the powerful state backstop is in effect, in case the court takes further action, and the Federal Communications Commission, which has no Democratic majority, remains in limbo.
Net neutralityThis is the idea that internet service providers cannot discriminate, block, or throttle web traffic. With a vote by the FCC in 2015 to reclassify ISPs according to Title II of 1934’s Communications Act of 1934 (which opened ISPs up for regulation as utilities), this idea was brought into being at a federal scale. The Trump administration rescinded those rules just a few more years later.
Broadband service providers are generally against net neutrality by Title II classification, even though they believe the principles behind net neutrality are one they agree with. The classification does open up to the possibility that ISPs will impose price restrictions, which they fear would discourage network investment.
Although net neutrality at the federal level is now a game of ping-pong between administrations and courts, laws in states like California may have a longer life expectancy. The telecom and wireless industries trade associations argued against the federal preemption of California’s law. The appeals court upheld this ruling and also ruled that FCC had not held the appropriate authority so no preemption was possible.
Already, the California law is having a tangible effect. California has been able to implement its net neutrality law since last year’s ruling by the lower court. AT&T said it would no longer exempt HBO MaxIt owns streaming platforms, and has removed its data limit. AT&T said the law would prevent it from sponsoring data for customers who use its wireless services, and added that “A state-by-state approach to ‘net neutrality’ is unworkable.”
Federal net neutrality is within reach
The Senate Commerce Committee will vote next week on President Joe Biden’s nomination to the commission. This could allow for movement at the federal and state levels. If her nomination is approved by the committee, the Senate will vote on it. The earlier vote was postponed due to concerns raised by Republicans, including some Democrats, about her previous comments on conservative outlets as well as her involvement with a non-profit online TV service which closed down after being sued by broadcast networks.
Sohn reportedlyIn a Thursday letter, she stated that she will voluntarily withdraw from broadcast copyright issues and retransmissions for the first three years of her term if she is confirmed. This could help her get confirmation. CNBC reached out to the FCC for clarification on Thursday’s letter.
Biden made it clear that he is interested in net neutrality with his executive order regarding competition and the hiring of Tim Wu to serve as White House National Economic Council. Wu is often credited for popularizing net neutrality.
Proponents of net neutrality are celebrating Friday’s California decision, while also acknowledging the challenges ahead.
In a statement, Barbara van Schewick, Director of Stanford Center for Internet and Society said that “Today’s Ninth Circuit ruling is a huge win for Californians and an open and free internet.” California is able to maintain net neutrality and shield Californians’ from unjustified practices of companies that pay for internet access.
Matt Wood (Vice President of Policy, General Counsel, Nonpartisan Group Free Press) stated that today’s ruling was “great news” but the work is not done. This win is important because it provides protections for people in the most populous state of America and propels national conversations forward. As impressive as this win is, the Biden FCC must regain its authority for national open-internet rules and policies that promote affordable, reliable, fair, and reasonable internet connectivity for all.
Disclosure: CNBC is owned by Comcast. NBCUniversal owns Comcast.
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