The Federal Communications Commission has voted on party lines to undo sweeping Obama-era “net neutrality” rules that guaranteed equal access to internet.
The agency’s Democratic commissioners dissented in the 3-2 vote Thursday.
The FCC’s new rules could usher in big changes in how Americans use the internet. The agency got rid of rules that barred companies like Comcast, AT&T and Verizon from playing favorites with internet apps and sites.
The broadband industry promises that the internet experience isn’t going to change. But protests have erupted online and in the streets as everyday Americans worry that cable and phone companies will be able to control what they see and do online.
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FCC Chairman Ajit Pai, a Republican who says the repeal will eliminate unnecessary regulation, called the internet the “greatest free-market innovation in history.” He added that it “certainly wasn’t heavy-handed government regulation” that’s been responsible for the internet’s “phenomenal” development. “Quite the contrary,” he says.
“What is the FCC doing today?” he asked. “Quite simply, we are restoring the light-touch framework that has governed the internet for most of its existence.”
Broadband providers, Pai says, will have stronger incentives to build networks, especially in underserved areas. Ending 2015 net neutrality rules, he says, will lead to a “free, more open internet.”
Net-neutrality supporters plan legal challenges. Some Democrats hope to ride that wave of public opinion into the 2018 elections.
Commissioner Mignon Clyburn, a Democrat who was appointed by President Barack Obama, lambasted the “preordained outcome” of the vote that she says hurts people, small and large businesses, and marginalized populations. She outlined her dissent from prepared remarks before the vote.
The end of net neutrality, she says, hands over the keys to the internet to a “handful of multi-billion dollar corporations.”
Michael O'Rielly, a Republican commissioner appointed by President Barack Obama, supported the overturning of net-neutrality rules, calling the FCC’s approach a “well-reasoned and soundly justified order.”
O'Rielly says he is not persuaded that “heavy handed” rules are needed to prevent “imaginary harm.”
The internet, he says, “has functioned without net neutrality rules for far longer than it has without them.” The decision, he says, “will not break the internet.”
WHAT IS NET NEUTRALITY?
Net neutrality is the principle that internet providers treat all web traffic equally, and it’s pretty much how the internet has worked since its creation. But regulators, consumer advocates and internet companies were concerned about what broadband companies could do with their power as the pathway to the internet – blocking or slowing down apps that rival their own services, for example.
WHAT DID THE GOVERNMENT DO ABOUT IT?
The FCC in 2015 approved rules, on a party-line vote, that made sure cable and phone companies don’t manipulate traffic. With them in place, a provider such as Comcast can’t charge Netflix for a faster path to its customers, or block it or slow it down.
The net neutrality rules gave the FCC power to go after companies for business practices that weren’t explicitly banned as well. For example, the Obama FCC said that “zero rating” practices by AT&T violated net neutrality. The telecom giant exempted its own video app from cellphone data caps, which would save some consumers money, and said video rivals could pay for the same treatment. Pai’s FCC spiked the effort to go after AT&T, even before it began rolling out a plan to undo the net neutrality rules entirely.
A federal appeals court upheld the rules in 2016 after broadband providers sued.
WHAT TELCOS WANT
Big telecom companies hate the stricter regulation that comes with the net neutrality rules and have fought them fiercely in court. They say the regulations can undermine investment in broadband and introduced uncertainty about what were acceptable business practices. There were concerns about potential price regulation, even though the FCC had said it won’t set prices for consumer internet service.
WHAT SILICON VALLEY WANTS
Internet companies such as Google have strongly backed net neutrality, but many tech firms have been more muted in their activism this year. Netflix, which had been vocal in support of the rules in 2015, said in January that weaker net neutrality wouldn’t hurt it because it’s now too popular with users for broadband providers to interfere.
WHAT HAPPENS NEXT
Although the FCC’s two Democrats said they will oppose the proposal, the repeal is likely to prevail as Republicans dominate 3-2. The vote for net neutrality in 2015 was also along party lines, but Democrats dominated then.
In the long run, net-neutrality advocates say undoing these rules makes it harder for the government to crack down on internet providers who act against consumer interests and will harm innovation. Those who criticize the rules say undoing them is good for investment in broadband networks.
But advocates aren’t sitting still. Some groups plan lawsuits to challenge the FCC’s move, and Democrats – energized by public protests in support of net neutrality – think it might be a winning political issue for them in 2018 congressional elections.