The Internet: the next frontier of human innovation. A network of infinite connections and infinite possibilities. That is, unless the FCC has anything to say about it.
Following the addition of language to the Trade Facilitation and Trade Enforcement Act that permanently extends the existing ban on taxation of Internet access, FreedomWorks Legislative Affairs Manager Josh Withrow commented:
In the mad rush of trying to pass as much terrible legislation as possible before the holiday deadline, Congress is actually doing one thing worth praising. A permanent extension of the Internet Tax Freedom Act is being included in the conference report for a bill aimed at modernizing the U.S. customs system. The bill is expected to pass by the end of the year, and the included measure would make permanent the ban on states and localities taxing access to the internet, a ban that has existed since 1998 and which has had to be repeatedly renewed since that time.
Today, the federal appeals court in Washington will begin to hear arguments regarding Obama’s net neutrality rule and whether or not the government should have the ability to micromanage the internet. As it would stand under the administration’s new rule, the government would have expanded capabilities to step in and add numerous burdensome regulations to the internet. This could pose many problems to businesses that range anywhere from substantial cost hikes to increased uncertainty in the economy; thus leading to curtailed innovation and less new products being introduced to the marketplace.
Last week, a federal appeals court delivered an important decision regarding the transmission and regulation of digital data that enters the country. In the 2-1 ruling, the court concluded that the International Trade Commission (ITC) does not have the authority to assume control over the flow of electronic transmissions, which could have introduced yet another regulatory blockade to stifle internet freedom.
On September 30th, Congress approved a measure that would fund the government for the next 10 weeks, until December 11th, while a budget is negotiated for the new fiscal year. The measure contains a reauthorization of the internet taxation ban, which is good news; that is, until the issue is brought up again in December and the government will face another funding battle.
Last Thursday the Federal Communications Commission voted 3-2 to regulate broadband internet as a public utility. This decision to regulate the internet was made mostly through secret meetings without public comment and less than a decade after the FCC declined to regulate the internet because there was no necessity. Even worse, because the 300-plus page new rule has not been made public yet, we still do not know exactly what is in the rule. Since the Federal Trade Commission already has the authority to protect consumers from anticompetitive business practices, the FCC’s new rules are another example of government trying to fix a problem that is nonexistent. The new rules may in fact harm consumers both by limiting competition, and by preventing the FTC from filing charges against internet providers once they are determined to be common carriers.
Today, the Federal Communications Commission voted 3-2 in favor of a controversial proposal to regulate the internet as a public utility, similar to telephone calls. The vote came as expected, down party lines with the three Democrats supporting and the two Republicans opposed. The decision is no surprise, but it leaves us with two questions that need to be answered: What does this mean, and where do we go from here?
On February 26th, the Federal Communications Commission (FCC), acting under the direction of President Obama, will vote on a 300-plus-page rule regulate the internet in much the same way it currently regulates utilities. The FCC’s new powers will be broad, and mark an end to the decades of unregulated internet service that has proven to be the greatest source of economic growth and innovation the world has ever seen. That the Commission will vote to pass the rule is all but a certainty.