FCC Likely to Get Back Control of the Internet
Verizon, Google and others are lining up on both sides of a fight in Congress.
Stung by a court ruling earlier this month that it lacks authority to regulate the Internet, the Federal Communications Commission will seek and likely get such power from Congress. However, it may be next year before lawmakers pass a bill granting the FCC’s wish.
The agency’s push for legislation is sure to spark a major clash between Internet service providers (ISPs), such as Comcast, Verizon, AT&T and AOL, and leading providers of content over the Web, including Google, Facebook, Yahoo and Amazon.
Specifically, the FCC will ask Rep. Edward Markey (D-MA) and other allies on Capitol Hill for regulatory powers that would allow the agency to issue rules pertaining to “net neutrality” -- a provision that seeks to guard against government or ISP restrictions on Web sites and platforms. Markey is a strong proponent of an open and unencumbered Web.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The FCC also wants the legislation to allow it to require ISPs to be more transparent in letting customers know what actual broadband speeds they’re working with at any given time.
Moreover, the agency is asking lawmakers to allow it to redirect money from the Universal Service Fund -- an FCC-created kitty for the advancement of universal service -- to the deployment of broadband service.
The court’s ruling that the FCC lacks authority to regulate the Web may slow the Obama administration’s ambitious national broadband plan, which seeks to connect 100 million households with broadband capability of at least 100 megabits over the next decade, as well as its moves to require truth-in-advertising rules for ISPs.
The controversial court case dates to 2005, when the FCC set up a number of net neutrality rules, requiring ISPs to treat all Internet traffic equally, no matter the source. In 2008, the agency found that Comcast, an ISP, was violating those regulations because it was slowing the speed of BitTorrent’s peer-to-peer file sharing program, which allowed users to share very large files, such as movies and television shows.
Though it denied the charge at first, Comcast later admitted that it was slowing that program, but only to protect customers from network congestion caused by the volume of BitTorrent traffic.
But the U.S. Court of Appeals for the District of Columbia Circuit held that the FCC “lacked any statutorily mandated responsibility” to impose its net neutrality rules on the Internet.
The decision “means there are no protections in the law for consumers’ broadband services,” says Gigi Sohn, president of Public Knowledge, a digital rights group that brought Comcast’s slowing of BitTorrent traffic to the attention of the FCC. “Companies selling Internet access are free to play favorites with content on their networks, to throttle certain applications or simply block others,” she adds.
The FCC could appeal the ruling to the Supreme Court, but that’s unlikely because the appeals court relied heavily on Supreme Court precedents in its decision.
It could also move to declare the Internet “a communications service” and therefore subject to its legal authority. In 2002, the Internet was declared an information service rather than a communications service and therefore subject to light regulation.
But reclassifying it as a communications service would subject it to the same rules designed for the then-monopolistic landline telephone systems, which are onerous and could stifle Internet innovation.
“We hope the issue would be referred to the U.S. Congress, which alone confers the Commission’s legal authority,” says Jim Cicconi, AT&T executive vice president.
For its part, Comcast -- which has stopped the practice of slowing peer-to-peer traffic -- says it “remains committed to the FCC’s existing broadband principles, and we will continue to work constructively with the FCC as it determines how best to increase broadband adoption and preserve an open and vibrant Internet.”
-
Save Over $40 on Audible With Amazon's Latest Deal
Amazon’s latest promotion lets you score three months of Audible for just $0.99 a month.
By Erin Bendig Published
-
Buy eBay and Sell Etsy, Morgan Stanley Says
Morgan Stanley is bullish on eBay and bearish on Etsy. Here’s what you need to know.
By Joey Solitro Published
-
The Robots Are Coming... But Not For a While
The Kiplinger Letter There’s excitement in the tech sector over the potential of humanoid robots, but widespread adoption is likely to be years away.
By John Miley Published
-
Farmers Face Another Tough Year As Costs Continue to Climb: The Kiplinger Letter
The Kiplinger Letter Farm income is expected to decline for a second year, while costs continue to up-end farm profitability.
By Matthew Housiaux Published
-
H-1B Work Visa Rules Get a Revamp
The Kiplinger Letter H-1B visas allow employers to hire high-skilled foreign workers. Regulators have finalized new rules for this visa program following last fall's proposal.
By Matthew Housiaux Published
-
Woes Continue for Banking Sector: The Kiplinger Letter
The Kiplinger Letter Regional bank stocks were hammered recently after news of New York Community Bank’s big fourth-quarter loss.
By Rodrigo Sermeño Published
-
Are College Athletes Employees of Their Schools?: The Kiplinger Letter
The Kiplinger Letter A recent ruling has ramifications for labor relations and the unionization of student athletes.
By Sean Lengell Published
-
Salton Sea Clean Energy and Lithium Project Gets Approval: The Kiplinger Letter
The Kiplinger Letter California's Salton Sea is due to see the construction of a new lithium extraction and geothermal clean energy power plant.
By Matthew Housiaux Published
-
More Woes for Anheuser-Busch as a Strike Looms: The Kiplinger Letter
The Kiplinger Letter Drinkers of Anheuser-Busch beers may want to stock up soon. A looming strike threatens to shutter its U.S. breweries later this month.
By Sean Lengell Published
-
The Auto Industry Outlook for 2024
The Kiplinger Letter Here's what to expect in the auto industry this year. If you’re in the market for a car it won’t be quite as daunting as it was during the pandemic and after.
By David Payne Published