DealBook Briefing: F.C.C. Reignites Fight Between Tech and Telecom
It’s Google and Netflix against Comcast and Verizon again.
In choosing to dismantle net neutrality regulations, the F.C.C. chairman Ajit Pai has pleased traditional broadband providers who want to charge for some kinds of internet traffic while angering online tech giants who want all internet services to be treated equally. Expect the court battles to begin soon.
Here’s how Mr. Pai described his thinking:
Under my proposal, the federal government will stop micromanaging the internet. Instead, the FCC would simply require internet service providers to be transparent about their practices so that consumers can buy the service plan that’s best for them and entrepreneurs and other small businesses can have the technical information they need to innovate.
(Here’s the NYT explainer on what the rule change might mean.)
Verizon’s statement: “We continue to believe that users should be able to access the internet when, where, and how they choose.”
Facebook’s statement: “We are disappointed that the proposal announced today by the F.C.C. fails to maintain the strong net neutrality protections that will ensure the internet remains open for everyone.”
Extra credit: The F.C.C.’s next fight will be with states that seek to impose net neutrality on a more local level, Politico reports.
Critics corner
• Devin Coldewey notes that millions of comments opposing a rollback of net neutrality rules were posted to the F.C.C.’s website. “For someone who claims to be working for the American people, F.C.C. Chairman Ajit Pai sure doesn’t seem to care what they have to say.” (TechCrunch)
• Shira Ovide writes, “No matter what the FCC does, America’s internet is not an equal place and it’s only going to become less fair.” (Bloomberg Gadfly)