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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.
Oddly parts of his background were overlooked by everyone. He was CEO of a small ISP at one point and was involved in tech startups until the 90s.
Does the FCC even have the authority to do that? Under what legal theory does an unelected federal regulatory commission have the authority to overrule state government laws on matters of state government interest? Don't get me wrong, I'm glad to see such laws go, as they're a major competition inhibitor, but how does the FCC have any authority in this?
Congress has clear authority to regulate interstate commerce, under the Constitution. Unlike some other things Congress has tried to regulate, it is very clear that the Internet is interstate commerce.
Having said that, the question that remains is whether Congress can delegate their lawmaking authority to some government bureaucracy. The correct answer to that question is probably no. But I know there are many people who would argue that point.
The last time the courts ruled on this, the ruling was that the FCC had ceded power and couldn't claim it back without the will of god. Or Congress, or something.
Not even close. The Supreme Court ruled that the FCC could not impose the rules it had tried to impose, BECAUSE it had not classified internet companies as Title II common carrier communications companies. So what the FCC did here, quite properly (if you accept that they have any authority to do it at all), was to re-classify internet providers as Title II common carriers.
There are many implications to this that people haven't been discussing much. It depends on the exact language of the rules when they go into effect. But the OLD rules for Title II common carriers stipulated that your communications can't be legally "intercepted" without a warrant. So deep packet inspection by ISPs is probably out the window.
Municipal electric utilities have sprung up for some time, but they're still relatively uncommon despite the benefits. I suspect it will be similar for internet utilities.
And of course, if Comcast charges $75/month and the city charges only $25, some people will still whine about it because it's the evil government charging the $25.