Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

FCC sued by broadband companies over net neutrality rules

Published 03/23/2015, 10:15 PM
Updated 03/23/2015, 10:15 PM
© Reuters. The Federal Communications Commission (FCC) logo is seen before the FCC Net Neutrality hearing in Washington

By Alina Selyukh

WASHINGTON (Reuters) - U.S. broadband providers on Monday filed lawsuits against the Federal Communications Commission's recently approved net neutrality rules, launching what is a expected to be a series of legal challenges.

Broadband industry trade group USTelecom filed a lawsuit against the FCC in the U.S. Court of Appeals for the District of Columbia, which has in the past twice rejected the FCC's net neutrality regulations.

The group argues the new rules are "arbitrary, capricious, and an abuse of discretion" and violate various laws, regulations and rulemaking procedures.

Texas-based Internet provider Alamo Broadband Inc challenged the FCC's new rules in the U.S. Court of Appeals for the Fifth Circuit in New Orleans, making a similar argument.

The rules, approved in February and posted online on March 12, treat both wireless and wireline Internet service providers as more heavily regulated "telecommunications services," more like traditional telephone companies.

Broadband providers are banned under the rules from blocking or slowing any traffic and from striking deals with content companies for smoother delivery of traffic to consumers.

USTelecom President Walter McCormick said in a statement that the group's members supported enactment of "open Internet" principles into law but not using the new regulatory regime that the FCC chose.

"We do not believe the Federal Communications Commission's move to utility-style regulation ... is legally sustainable," he said.

Industry sources have previously told Reuters that USTelecom and two other trade groups, CTIA-The Wireless Association and the National Cable and Telecommunications Association, were expected to lead the expected legal challenges.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Verizon Communications Inc (NYSE:VZ), which won the 2010 lawsuit against the FCC, is likely to hold back from filing an individual lawsuit this time around, an industry source familiar with Verizon's plan has told Reuters.

FCC officials have said they were prepared for lawsuits and the new rules were on much firmer legal ground than previous iterations. The FCC said Monday's petitions were "premature and subject to dismissal."

The FCC's rules have yet to be published in the Federal Register and formally go into effect, though USTelecom in its lawsuit says it filed the challenge on Monday in case the rules are construed to be final on the date of issue.

The case is U.S. Telecom Association v. FCC and United States of America, U.S. Court of Appeals for the District of Columbia Circuit, No. 15-1063.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.