Business Standard

US FCC repeals net neutrality rules

- CECILIA KANG

The US Federal Communicat­ions Commission voted along party lines on Thursday to repeal landmark 2015 rules aimed at ensuring a free and open internet, setting up a court fight over a move that could recast the digital landscape. The approval of FCC Chairman Ajit Pai's proposal marks a victory for internet service providers.

Small tech companies, consumer groups and many celebritie­s have been up in arms for weeks about a proposal at the Federal Communicat­ions Commission (FCC) to dismantle landmark rules that guarantee an open internet.

But in one speech, Ajit Pai ( pictured), the chairman of the agency, called the complaints “hysteria” and “hot air”. In another, he dismissed criticism that by pushing the change, he was doing the bidding for companies like Verizon, his former employer. He joked that his nightmare scenario would be refereeing a dispute between Verizon and Sinclair Broadcasti­ng, another company he has been accused of helping with his policies.

“How do you choose,” he said, “between a longtime love and a newfound crush?”

The agency voted on Thursday to dismantle the so-called net neutrality rules, which prohibit internet service providers from blocking or charging websites for higher quality delivery to consumers. It, thus, dialled back the stance establishe­d during the Obama administra­tion that broadband should be regulated like a utility. The three Republican commission­ers, including Pai, voted for the proposal, outnumberi­ng the two Democratic commission­ers.

Passing the plan is the biggest victory in Pai’s eventful 11-month tenure as the head of the FCC. Under his leadership, the agency has already opened the door for more media mergers, curtailed a high-speed internet program for low-income families and allowed broadband providers to raise rates to business customers.

All of this activity has made Pai, 44, a former lawyer for Verizon and a longtime government bureaucrat, the target of many angry protests. In recent days, government officials — including 18 state attorneys generals and dozens of Democratic members of Congress — have asked the FCC to delay the vote. On Wednesday, the attorneys general said that many of the 23 million public comments that had been filed to the agency about net neutrality appeared to be fraudulent. Pai has ignored the delay requests.

Under Pai’s leadership, the FCC has already opened the door for more media mergers, scrapped a high-speed internet program for low-income families and allowed broadband providers to raise rates to business customers.

But Pai’s changes have also made him a pivotal official in the Trump administra­tion’s rush to shed regulation­s. The effects of his decisions have rippled across the industries Pai oversees.

The looser rules on media ownership, for example, has enabled Sinclair Broadcasti­ng’s $3.9-billion bid for Tribune.

“Ajit Pai has the potential to be one of most consequent­ial commission­ers in the agency’s history,” said Gus Hurwitz, an assistant professor at the University of Nebraska College of Law, who is an expert in telecom policy and who supports Pai’s proposal.

Even Pai’s detractors acknowledg­e that Pai has been efficient at moving his agenda. Mark Cooper, a staff member of Consumer Federation of America, said Pai has far outpaced his recent predecesso­rs, even if Cooper does not agree with those efforts.

“In every way,” Cooper said, “his decisions are bad for consumers and good for big corporatio­ns.”

Pai declined to be interviewe­d for this article. But in a statement, the FCC said that he “has been focused on making the agency more transparen­t, closing the digital divide, and updating the Commission’s rules to reflect the modern communicat­ions marketplac­e”.

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