FCC Undercuts Net Neutrality In New Proposal

In a reversal of policy, the FCC has announced it will propose new rules that would allow Internet providers to charge content providers for a ‘fast lane.’ The new strategy is an about-face from the FCC’s “open internet” rule, which was struck down by a federal appeals court in January. That rule enforced ‘net neutrality,’ which mandated that Internet service providers (ISPs) like Verizon and Comcast treat similar content equally. Chairman of the FCC Tom Wheeler defended the agency’s move, saying any assertions that the open Internet rule was being gutted is “flat out wrong,” according to the New York Times. He says the FCC is merely trying to propose rules in line with the recent appeals court ruling.

Verizon Communications sued after the FCC passed ‘net neutrality’ in 2010, claiming the agency lacked the authority to impose those rules, and a three-judge panel of the D.C. Court of Appeals agreed, though they suggested if the FCC classified Internet service as a telecommunications service, as it does telephones, a version of the rules might be brought back.

In a statement obtained by Mashable, the FCC said the draft rules would propose “that broadband providers would be required to offer a baseline level of service to their subscribers, along with the ability to enter into individual negotiations with content providers.” The proposal would force broadband providers to disclose how they treat all Internet traffic, as well as the terms under which they offer more rapid lanes, and whether they have favored affiliated companies that provide content by assigning them faster lanes – a particular concern for Comcast, which owns NBCUniversal. Providers would be required to act “in a commercially reasonable manner,” agency officials told the Times.

Consumer groups immediately called foul, saying the policy would stifle innovation by favoring larger, wealthier companies that can afford to pay extra for speedier service, and could prevent small tech start-ups from becoming the next Facebook or Twitter. “The FCC is inviting ISPs to pick winners and losers online,” Michael Weinberg, vice president at Public Knowledge, a group that promotes net neutrality, said in a statement. “The very essence of a ‘commercial reasonableness’ standard is discrimination. … It is hard to see how the commercial reasonableness standard, which inherently offers less protection than the standard in the previous Open Internet Rules, can serve the same policy goals.”

The draft proposal, written by Wheeler and his staff, will be reviewed by other FCC commissioners this week, and a vote will be held on May 15. After a public comment period, the FCC will draft final rules and hold a vote.