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FTC Says It May Be Unable To Regulate Comcast, Google, and Verizon (arstechnica.com)

The Federal Trade Commission is worried that it may no longer be able to regulate companies such as Comcast, Google, and Verizon unless a recent court ruling is overturned, ArsTechnica reports. From the article: The FTC on Thursday petitioned the 9th US Circuit Court of Appeals for a rehearing in a case involving AT&T's throttling of unlimited data plans. A 9th Circuit panel previously ruled that the FTC cannot punish AT&T, and the decision raises questions about the FTC's ability to regulate any company that operates a common carrier business such as telephone or Internet service. While the FTC's charter from Congress prohibits it from regulating common carriers, the agency has previously exercised authority to regulate these companies when they offer non-common carrier services. But the recent court ruling said that AT&T is immune from FTC oversight entirely, even when it's not acting as a common carrier. It isn't clear whether the ruling sets an ironclad precedent preventing the FTC from regulating any company with a common carrier business.

3 of 86 comments (clear)

  1. Break them up, then by ausekilis · · Score: 5, Insightful

    These companies are wireless phone providers, internet service providers, content creators, and cable television companies. When one company owns the full stack of an entertainment channel and can no longer be regulated by a single government agency, then they need to be broken up into their constituent parts. Just like the Ma Bell days of old.

    It's nothing more than a different style of monopoly similar to a mafia-run operation. You will buy only their product, from them, at prices they command. They've already killed all real competition, so you don't have a choice.

  2. Re:Executive Overreach by omnichad · · Score: 5, Insightful

    congress was very clear that the FCC regulates common carriers, not the FTC.

    And "common carrier" is a hat that a company wears. If they're not wearing that hat, they're not under the FTC. To say otherwise would put the SEC in charge of a day trader's murder trial.

  3. Re:Executive Overreach by omnichad · · Score: 4, Interesting

    The FCC only regulates the communication - it doesn't regulate all aspects of their business. The FTC is saying that they may not be allowed to enforce anything on a company that is partially under the FCC at all:

    The panel’s ruling creates an enforcement gap that would leave no federal agency able to protect millions of consumers across the country from unfair or deceptive practices or obtain redress on their behalf. Many companies provide both common-carrier and non-common-carrier services—not just telephone companies like AT&T, but also cable companies like Comcast, technology companies like Google, and energy companies like ExxonMobil (which operate common carrier oil pipelines). Companies that are not common carriers today may gain that status by offering new services or through corporate acquisitions. For example, AOL and Yahoo, which are not common carriers, are (or soon will be) owned by Verizon. The panel’s ruling calls into question the FTC’s ability to protect consumers from unlawful practices by such companies in any of their lines of business.