As Big As Net Neutrality? FCC Kills State-Imposed Internet Monopolies
tedlistens writes: On Thursday, before it voted in favor of "net neutrality," the Federal Communications Commission voted 3-2 to override state laws in Tennessee and North Carolina that have barred local governments and public utilities from offering broadband outside the areas where they have traditionally sold electricity. Christopher Mitchell of the Institute for Local Self-Reliance said the move was as important for internet competition as net neutrality: "Preventing big Internet Service Providers from unfairly discriminating against content online is a victory, but allowing communities to be the owners and stewards of their own broadband networks is a watershed moment that will serve as a check against the worst abuses of the cable monopoly for decades to come." The laws, like those in over a dozen other states, are often created under pressure from large private Internet providers like Comcast and Verizon, who consequently control monopolies or duopolies over high-speed internet in these places.
Yeah -- subpar. Every time I ask FedEx or UPS to mail a letter for me for less than 50c, they laugh.
What changed under Obama? Nothing Good
Given the 8-1 decision in Nixon v. Missouri Municipal League in 2004, it's essentially certain that this FCC action will be overturned by the courts. The FCC doesn't have a legal leg to stand on.
In that case, the Supreme Court ruled that federal law did not and could not preempt a Missouri state law that prohibited municipalities from providing Internet service. Of the eight-member majority in that case, five (Kennedy, Ginsburg, Breyer, Scalia, and Thomas) are still on the court.