A trade group and broadband provider on Monday, March 23, sued the Federal Communications Commission (FCC) due to new net neutrality rules, claiming they overstep the government’s authority.
The U.S. Telecom Association, the industry group – which includes providers AT&T, Verizon, CenturyLink, and others – calls the rules “arbitrary, capricious and an abuse of direction,” according to its court filing. Along with Alamo Broadband Inc., the group is requesting that the courts void the rules, which prohibit Internet service providers, such as AT&T and Comcast, from slowing or blocking online traffic.
The lawsuits are the first in what is anticipated to be a drawn-out legal battle, as companies claim the new rules meant to maintain an open Internet put too much power into the hands of the government.
“These filings are the first in what will undoubtedly be years of challenges spurred by the FCC’s unnecessary and inappropriate regulation of the Internet,” said Reps. Fred Upton (R-Mich.) and Greg Walden (R-Ore.), whose legislative duties include oversight of the FCC, according to Bloomberg.
In its lawsuit, the association states that the FCC is relying on outdated anti-monopoly rules written in 1934 to establish its net neutrality rules. If the rules are fully enacted, the FCC would have supreme authority of the Internet.
The FCC said its rules, which were released on March 12, would be implemented after they are published in the Federal Register, an event that hasn’t occurred yet. The government agency said it promises it would only use some of its new authority to regulate the Internet, but telecom companies do not believe this and want to retain control of their networks.
Critics of the new rules said they could result in rate regulation, although FCC Chairman Tom Wheeler, a Democrat, has said the agency has no plans to set rates, according to Bloomberg.
Jonathan Banks, senior vice president of US Telecom, said in an email that its challenge to the rules focuses on the agency’s claim of strong authority, which leaves broadband to be managed as a public utility.
“We do not block or throttle traffic and FCC rules prohibiting blocking or throttling will not be the focus of our appeal,” Banks said, according to Bloomberg.
US Telecom and Alamo filed their complaints quickly, which they both acknowledged, and potentially too early, due to uncertainty about procedural deadlines.
Brett Shumate, attorney for Alamo, declined to comment, Bloomberg reported.
“The Commission was served today with two challenges to the Open Internet Order,” an FCC spokesperson said in a statement. “We believe that the petitions for review filed today are premature and subject to dismissal.”
The current rules on the table were proposed by Wheeler and approved on Feb. 26 by the commission in a 3-2 party line vote. This allows the agency to regulate broadband as a utility under Title II of the Communications Act, ensuring providers treat all Internet traffic equally. Large Internet service providers have said these rules hinders innovation and investment.
A similar case took place in 2010 when Verizon sued the FCC to block net neutrality and won at the appellate level. That same year, the agency lost a case when judges ruled it did not possess the authority to regulate Comcast’s Internet practices, Bloomberg reported.
(With reports from Bloomberg, CNN and Politico)
(www.asianjournal.com)
(Las Vegas March 26 – April 1, 2015 Sec. A pg.1)
