California lawmakers passed a law late last month that protects net neutrality — or equal access to the World Wide Web — in the Golden State. Shortly thereafter, the Justice Department sued California.
Bill 822 is the strongest push for equal rights on the web since the Federal Communications Commission jettisoned federal net-neutrality laws last year.
Bill 822 is the strongest push for equal rights on the web since the Federal Communications Commission jettisoned federal net-neutrality laws last year.
“The bill
fully protects net neutrality in California,” Sen. Scott Wiener, author of the
bill, said in a statement.
Why net
neutrality matters
The web is
built on the internet. Therefore, companies such as Facebook, Netflix and Amazon
rely on Internet providers such as Comcast, AT&T, Verizon, etc.
Net
neutrality ensures that internet providers cannot block, slow or charge extra
for access to any organizations built on the web. It also guarantees that
web-based companies can compete with providers without their content being
discriminated against.
It also
ensures new web-based companies a chance to find an audience without being
blocked by conglomerates with deeper pockets.
Much
of the public worries
that the repeal of these safeguards — put in place in 2015 by the Obama
administration — makes the web an uneven playing field that will drive many smaller companies out of
business.
State vs. federal regulation
“The
internet is inherently an interstate information service,” FCC Chairman Ajit
Pai said in a statement. “As such, only federal government can set
policy in this area.”
According to
the Justice Department, California’s new law hinders the federal government's
approach to internet regulation.
The bill
has, however, won the support of some big names, including former FCC Chairman
Tom Wheeler and current FCC Commissioner Jessica Rosenworcel.
Wheeler
said he thinks the law sends a strong message to Capitol Hill and other states.
“A hefty
thank you to the Golden State for your effort to get right what the FCC got
wrong when it wiped out our open Internet protections,” Rosenworcel wrote in a statement.
Responses
to net neutrality issue
In
response, 30 state legislators have introduced 72 bills in favor of restoring
these web restrictions. California, however, has passed the strictest net
neutrality laws in the country, going even further, in some instances, than
previous regulations.
For
example, under the new law, companies can no longer pay to make their own
content cheaper or free in a consumer’s data bill. Deals like this are known as
zero-rating plans.
Changes
like this are why some experts say that California’s new regulations actually
hurt consumers.
“If allowed
to stand, the law would be incredibly detrimental to American consumers and the
continued growth of the Internet,” FCC commissioner Michael O’Rielly said in a statement.
Also,
services provided through the same internet cable are now potentially illegal
if they negatively affect service performance or attempt to circumvent the
rules.
Many
federal politicians and companies such as AT&T, Verizon and Comcast feel
that these regulations, and all state regulations, are unfair.
While
these companies say they support the basic idea of net neutrality, they think
California’s regulations limit their ability to explore new business
opportunities.
“State-by-state
regulation in this area is insufficient and unworkable because the internet is
a global network,” AT&T Executive Vice President Joan Marsh said in a statement.
“Under the Constitution, states do not regulate interstate commerce — the federal government
does,” Attorney General Jeff Sessions said in a statement.
Effectiveness
of California’s new law
Legal
experts believe
that a federal judge will likely place California’s law on hold until the court
case, which is likely headed to the Supreme Court, is resolved.
With
lawmakers all over the country introducing bills to reinstate net neutrality,
the passage of California’s law will put pressure on Congress to deal with the
issue.
Jonathan
Spalter, CEO of USTelecom, said in a statement that instead of every state coming up with its
own solution to this issue, “we need Congress to step up with a national
framework for the whole internet ecosystem.”
Spalter
said until that happens, new state laws will not advance the cause of net
neutrality.
And
California’s new law, being the toughest, has placed the state at the forefront
of the rebellion against the FCCs stance on the issue.
“When
Donald Trump’s FCC took a wrecking ball to the Obama-era net neutrality
protections, we said we would step in to make sure that California residents
would be protected,” Wiener said in a statement.
-- Grant Schmieding