Pai Plan to End Net Neutrality Rules Prompts Calls for Legislation

Congressional Democrats expressed anger at FCC Chairman Ajit Pai’s plan to lift net neutrality rules (see 1711210020), as some Republicans and industry groups sought congressional action. The Commerce committees' Republicans sought a legislative solution, while praising Pai’s light-handed approach. ISPs and free-market groups endorsed the plan as helpful for consumers, and tech groups predicted harmful impacts. State and local officials told us of concerns about likely pre-emption of state and local broadband regulation (see 1711200054) setting off alarms in several mostly blue states.

“While I support Chairman Pai’s efforts as an improvement, I still strongly believe the only way to create long term certainty for the internet ecosystem is for Congress to pass a bipartisan law,” emailed Senate Commerce Chairman John Thune, R-S.D. House Commerce Committee Chairman Greg Walden, R-Ore., and Communications Subcommittee Chairman Marsha Blackburn, R-Tenn., voiced commitment to “ensuring clear, permanent net neutrality rules through the legislative process.” House Majority Whip Steve Scalise, R-La., tweeted support for Pai.

“Online outrage needs to turn into votes,” tweeted Senate Commerce Communications Subcommittee Chairman ranking member Brian Schatz of Hawaii. “The fight is not over,” said House Commerce Committee ranking member Frank Pallone, N.J., vowing to work to revoke Pai’s “harmful plan.” Congressional Democrats expressed frustration with the impending demise of FCC rules. “Tearing down net neutrality is the crowning achievement of the most anti-consumer FCC chair in history,” said Sen. Ron Wyden, D-Ore. Sen. Ed Markey, D-Mass., tweeted the decision will result in “broadband barons” exerting power that will harm consumers, innovation and startups. Rep. Mike Doyle, D-Pa., said he's “disappointed and angry,” and Rep. Anna Eshoo, D-Calif., said Pai “is on the wrong side of history.”

A "shameful sham and sellout" was former FCC Chairman Tom Wheeler's response to Pai's unwinding of rules Wheeler's FCC put in place. "The Trump FCC is telling Latinos and other consumers that their voices will only be heard as far as their wallets can carry them, by paving the way for paid prioritization," said the National Hispanic Media Coalition.

State, Local Rights

Washington Gov. Jay Inslee (D) has “serious concerns with what FCC might do to roll back net neutrality and pre-empt the rights of states to protect freedom of the internet for their constituents,” a spokeswoman said: “The governor has been a longtime champion for net neutrality.” Other state and local government leaders also sounded alarms about possible pre-emption and Pai’s net neutrality draft. It would say state and local laws or rules that conflict with the deregulatory federal policy of treating broadband as an interstate information service would be pre-empted, a senior staffer said to reporters on condition of not being named nor being quoted verbatim.

"The internet is an essential service that should be available to all," tweeted New York Gov. Andrew Cuomo (D). "We must fight against this appalling decision."

“People are very wary of the federal government becoming a captive of the media and telecom behemoths,” said Minnesota State Rep. Paul Thissen (D), who unsuccessfully tried to revive a state ISP privacy proposal that would counter congressional repeal of the FCC broadband privacy rules (see 1709200053). “States are the ones committed to protecting their constituents. Efficiency is only one of many values we need to consider -- privacy and rights of consumers is more important.”

The Pai proposal brought “great alarm” to the Connecticut Office of Consumer Counsel and State Broadband Office, Consumer Counsel Elin Katz emailed us. It shows the FCC again “working for big businesses that profit off consumer data, rather than the consumers,” she said. Possible state pre-emption would stop states from filling the privacy void left by the federal government when it didn’t allow ISP privacy rules to become law, Katz said. “In Connecticut, where legislators are alarmed by the FCC’s repeal of privacy protections, we are looking at our options to ensure consumer privacy -- we will fight any attempt to limit that authority.” The budget passed earlier this month set up a broadband and data privacy working group to make recommendations to the legislature by Jan. 15, Katz said.

New York and California attorneys general protested Pai’s proposal. “Unacceptable,” California AG Xavier Becerra (D) tweeted. New York Attorney General Eric Schneiderman (D) tweeted: “Unless we all speak out against the @FCC’s efforts to gut #netneutrality, the free and open internet we know today could be gone.”

Cities “are concerned about maintaining quality of service and consumer protection,” said Angelina Panettieri, National League of Cities principal associate-technology and communications. “If the FCC chooses not to protect consumers and not to use their authority to force providers to maintain certain standards of service, and state and local governments are preempted from doing so, we are worried that city residents will be left with no government protection.”

NATOA supports a free and open internet “where consumers could access the sites of their choosing without interference or throttling by providers,” emailed Executive Director Steve Traylor. “Those days may be over -- especially if the Commission acts to preempt any state or local authority over the Internet.”

“Net Neutrality protects New Yorkers from corporate greed,” tweeted New York Mayor Bill de Blasio (D). “Of course the Trump Administration wants to end it.”

California’s ISP privacy bill is expected to return this January, but FCC pre-emption could stop that from happening -- even with litigation likely, said Oakland Privacy coalition member and Media Alliance Executive Director Tracy Rosenberg in an interview. A state bill may still be introduced as a political statement, but that’s up to the legislator, she said. Rosenberg agrees with industry that a national privacy standard would be better, but Congress rejected that approach: “If we can’t have a national standard and we can’t have local standards, then the argument essentially becomes we can’t do anything to protect consumer privacy.” Other privacy groups also opposed FCC pre-emption of states (see 1711200054).

Mixed Industry Reaction

Groups representing ISPs downplayed any negative impact.

“Net neutrality is not dying,” TechFreedom President Berin Szoka told reporters. Pai deserves recognition for releasing the full text of the proposal ahead of the vote, which is a win for consumers and releases commissioners from “being held hostage” in negotiations, Szoka said.

The Wireless Infrastructure Association supported Pai’s decision but said bipartisan action “would lead to the long-term regulatory certainty the wireless industry needs.” Comcast said Pai’s proposal is “not the end of net neutrality rules” because FCC and FTC maintain authority to police bad behavior, and separately said the company doesn’t and won’t block, throttle or discriminate lawful content. Verizon said it's “encouraged” by the move to restore a “successful light-touch regulatory framework for internet services.” The American Cable Association, Telecommunications Industry Association and AT&T issued supportive statements.

Incompass CEO Chip Pickering said Pai’s proposal “will have consumers screaming, businesses reeling and Justice [Antonin] Scalia spinning in his grave.” Computer & Communications Industry Association policy counsel John Howes emailed "Pai wants to rip up the basic rules of the road for the Internet" and warned in a Nov. 17 filing in docket 17-108 that consumers would be left unprotected because the FTC doesn’t have sufficient enforcement authority. The Internet Association said it will continue to work for net neutrality protections.

Free Press criticized Pai’s “knee-jerk proposal,” promising it “will face withering scrutiny in court,” said Policy Director Matt Wood. The group is rallying consumers to protest at Verizon retail stores and lawmaker offices Dec. 7.