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F.C.C. Is Said to Plan Repeal of Net Neutrality Rules F.C.C. Is Said to Plan Repeal of Net Neutrality Rules
(about 1 hour later)
WASHINGTON — The Federal Communications Commission is preparing a full repeal of net neutrality rules that require internet service providers to give consumers equal access to all content on the internet, putting more power in the hands of telecom companies to dictate people’s online experiences. WASHINGTON — The Federal Communications Commission is preparing a full repeal of net neutrality rules that require broadband providers to give consumers equal access to all content on the internet, putting more power in the hands of those companies to dictate people’s online experiences.
In a sweeping proposal to be revealed on Tuesday, Ajit Pai, the chairman of the F.C.C., plans to scrap the net neutrality rules that were created during the Obama administration, according to two people familiar with the plan, who spoke on the condition of anonymity because the details are not public. The rules prohibit broadband service providers from blocking, slowing down or charging more for the delivery of certain internet content. Ajit Pai, the chairman of the F.C.C., plans to reveal a sweeping proposal to scrap the net neutrality rules on Tuesday, according to two people familiar with the plan, who spoke on the condition of anonymity because the details are not public. The rules, created during the Obama administration, prohibit broadband providers from blocking, slowing down or charging more for the delivery of certain internet content. The proposal will be presented in a December meeting of F.C.C. commissioners and is expected to pass in a 3-to-2 vote along party lines.
Mr. Pai will also suggest that the Federal Trade Commission, which has traditionally not brought many cases, be the enforcement agency of net neutrality violations, the people said. A rollback of net neutrality regulations would mark a significant victory for broadband and telecom companies like AT&T and Comcast and would amount to a strike against consumers. When the rules were passed in 2015, they underlined the importance of high-speed internet to the lives of Americans and the need to more strongly regulate the communications service like a utility, as essential as electricity and the telephone.
In addition, Mr. Pai plans to reverse a decision from the Obama administration that declared broadband be treated like a utility, a classification that opened the door to many more regulations for internet service providers, the people said. But under a repeal, companies like AT&T and Comcast may be able to charge people higher fees to access certain websites and online services. The companies may also be able to prioritize their own services while disadvantaging websites run by rivals.
Mr. Pai’s actions are a victory for telecom giants and are set to reignite lobbying battles between internet and telecom companies. The net neutrality rules were created in 2015 after numerous debates about the issue. On one side, telecom giants said the regulations encumbered their business plans, while on the other, tech giants like Google and Amazon argued the broadband providers could become gatekeepers of what internet content reached consumers. Mr. Pai plans to accompany the repeal of net neutrality with several other measures that will also benefit broadband companies, said the people with knowledge of the matter. That includes suggesting that the Federal Trade Commission, which has traditionally not brought many cases, be the enforcement agency of net neutrality violations, they said.
During the Obama administration, the head of the F.C.C., Tom Wheeler, said net neutrality regulations were necessary to prevent a company like Verizon from slowing down the delivery of a service like Netflix or SlingTV, which competes with Verizon’s video service, FiOs. In addition, Mr. Pai plans to reverse a decision from the Obama administration that declared broadband be treated like a utility, the people said. That classification had opened the door to many more regulations for broadband providers.
The repeal will be presented in the December agency meeting of F.C.C. commissioners and is expected to pass in a 3-to-2 majority vote along party lines. Mr. Pai, who was appointed by President Trump, has called the net neutrality rules an example of government overreach in the fast-growing broadband industry. He said broadband providers increasingly compete with companies like Facebook and Google, which are also providing internet access but aren’t subject to regulation. The F.C.C. did not immediately respond to requests for comment about the repeal plans.
The F.C.C. did not immediately respond to requests for comment. Consumer groups and Democrats decried the proposed changes.
“It ain’t broke, so why fix it?” Julius Genachowski, a former Democratic chairman of the F.C.C., said in an interview. “The core rules of no blocking, no discrimination, and transparency have worked to create an ecosystem of innovation and investment that’s the envy of the rest of the world.”
Net neutrality has long been a thorny topic that has ignited lobbying battles and heated debate between internet and telecom companies. On one side, broadband companies have argued that the regulations encumbered their business plans. On the other side, tech giants like Google and Amazon said that without such rules, the broadband providers could become gatekeepers of what internet content reached consumers.
While some of the largest companies can afford to pay for faster delivery of their online content, start-ups like Etsy and Reddit, which have been fierce defenders of net neutrality, have said smaller companies would be squashed by what they view as tolls just to make sure their sites reach consumers.
During the Obama administration, the head of the F.C.C., Tom Wheeler, said net neutrality regulations were necessary to prevent a company like Verizon from slowing down the delivery of a service like Netflix or Sling TV, which competes with Verizon’s video service, Fios.
Mr. Pai’s proposal to scrap net neutrality rules is the latest in a deregulation blitz that includes the rollback of media ownership and broadband privacy rules. Mr. Pai, who was appointed by President Trump, opposed the rules when they were created in 2015, saying they would stifle investment by broadband providers.
More recently, Mr. Pai has clearly signaled his opposition to net neutrality. He has called the rules an example of government overreach in the fast-growing broadband industry. In April, a few months after he was named F.C.C. chairman, he announced his intention to overhaul the rules, saying the threat of harms to consumers were only theoretical.
“The truth of the matter is that we decided to abandon successful policies solely because of hypothetical harms and hysterical prophecies of doom,” Mr. Pai said in an April speech about the creation of the net neutrality rules.
The rollback comes as the Justice Department’s antitrust division under Makan Delrahim, another government official appointed by Mr. Trump, has taken the opposite approach with AT&T. On Monday, the Justice Department filed suit to block AT&T’s $85.4 billion merger with Time Warner.