ISPs Urge Court to Quickly Block FCC Net Neutrality Rules

Net neutrality

ISPs say the rules, scheduled to come into force next month, will cause irreversible damage to their financial operations.

WASHINGTON, June 22, 2024 – Telecommunications companies subject to new federal internet services rules want a court to block them from taking effect next month to avoid irreversible damage to their financial operations, they said Friday in a filing.

National and regional ISPs are challenging net neutrality rules adopted in April by the Federal Communications Commission under its chairwoman. Jessica Rosenworcelclaiming that implementing these rules would exceed the agency’s authority and would cause irreversible losses.

On short Friday, ISPs pointed to the FCC’s creation of a general standard of conduct that they said the agency “can enforce through mass forfeitures and private parties through damages actions.”

The FCC’s rules classify ISPs as common carriers under Title II of the Communications Act, giving the agency a strong oversight role over the companies that connect 91% of U.S. households to the Internet.

The FCC has used its waiver authority to lessen the full burden of Title II, noting that it will not regulate rates or require ISPs to open their networks to third-party ISPs.

In their statement, ISPs argued that the FCC was downplaying the full importance of the rules.

“The FCC pretends that the (net neutrality order) is merely imposing uncontroversial open Internet rules while emphasizing that it has waived some of the most conspicuous provisions of Title II,” the ISP said. “The fact that the FCC must waive so much of Title II to make its interpretation work is a sign that the FCC has a flawed interpretation.”

Internet service providers – companies such as Comcast, Charter, AT&T and Verizon represented by national and state industry associations – also insisted that the pause on the deal was necessary because Congress had not expressly authorized the FCC’s action.

ISPs asked the court to rule on the suspension by July 15, a week before the regulations come into force on July 22. This would leave a short period within which to apply to the Supreme Court for a stay if the stay was denied below.

The FCC and ISPs also disagreed on proper jurisdiction. After selecting the Sixth Circuit to hear the case through a lottery, the FCC decided to remand the case to the United States Court of Appeals for the D.C. Circuit in Washington, located near the FCC headquarters.

The FCC said the case should be taken up by the D.C. Circuit because that court had ruled in four previous net neutrality cases. ISPs opposed the transfer, saying the FCC wanted to gain leverage because the D.C. Circuit upheld the agency’s 2015 net neutrality rules.

The FCC’s motion to transfer the case is pending before the Sixth Circuit.