The Federal Communications Commission today denied the requests of five broadband industry trade groups that asked for an immediate halt to the reclassification of Internet service providers as common carriers subject to Title II regulation.
The move to dismiss the broadband industry petitions for a stay is no surprise, but the FCC's denial sets up the next phase in the net neutrality legal battle. Now the groups will ask a court to halt the reclassification pending a final outcome. If they can't get a stay from a judge, they will have to abide by the reclassification until their full challenge of the FCC's ruling gets its day in court, which could take years.
Petitions for a stay were filed by the United States Telecom Association, CTIA-The Wireless Association, AT&T, CenturyLink, the Wireless Internet Service Providers Association, the American Cable Association, and the National Cable & Telecommunications Association.
The groups asked the FCC to halt the reclassification of ISPs but to leave in place the net neutrality restrictions on blocking, throttling, and paid prioritization. The two moves were part of the same order, with the FCC using its reclassification authority to impose the net neutrality restrictions.
The FCC's denial of the petition said consumer protections beyond the three "bright-line" rules are important. For example, there is a general conduct standard to prevent broadband provider actions that are harmful to consumers and companies that deliver services over the Internet, with the FCC judging each potential violation on a case-by-case basis.
"Petitioners allege that because they do not seek a stay of the three bright-line open Internet rules, there is not a sufficient threat of harm to others or to the public interest to warrant denial of their stay requests," the FCC wrote. "Rather, they contend that granting their stay requests would maintain the status quo with respect to their own regulatory status and thereby advance the public interest by providing regulatory continuity and stability and promoting investment."
However, "the Commission found that bright-line rules were insufficient to protect against all broadband provider conduct harmful to Internet openness. To protect against such conduct, the Commission adopted mechanisms for case-by-case evaluation of broadband provider conduct—the no-unreasonable interference/discrimination standard and the [framework for deciding interconnection disputes]. Granting the Petitioners' requested stay would eliminate these important regulatory backstops against the harms to consumers and innovators that the Commission sought to address through the aggregate regulatory measures adopted in the Order."
The groups also failed to convince the FCC that they are likely to win in court. "Petitioners have failed to demonstrate that they are likely to succeed on the merits. The Commission's classification of fixed and mobile BIAS [broadband Internet access service] as telecommunications services falls well within the Commission's statutory authority, is consistent with Supreme Court precedent, and fully complies with the Administrative Procedure Act," the FCC wrote.
The FCC today also dismissed a similar petition filed by Daniel Berninger, founder of a group called the Voice Communication Exchange Committee.
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