The fight over net neutrality has long been politically fraught at federal level. Now the attention has moved to the state level, and right now a spotlight is on California. Excessive regulatory efforts in Sacramento could cause negative impacts on consumers in the Golden State -- and across the nation.
Up until 2015, the light-touch approach to regulation allowed the internet to flourish and evolve a functional ecosystem for consumers and businesses. However, Obama-appointed Federal Communications Commission (FCC) Chairman Tom Wheeler reversed course and instated Title II regulations -- decades-old rules intended for utilities -- on internet service providers (ISPs). What was marketed as creating a “free and open internet” was actually a dramatic increase in federal regulation on ISPs. Under this rule, ISPs would be regulated like telephone monopolies during the 1930s.
Former FCC Chairman Ajit Pai corrected this heavy-handed approach with the Restoring Internet Freedom Order. Under immense political blowback, Chairman Pai reinstated Title I regulations and a light-touch approach. Despite apocalyptic rhetoric, the internet still exists after this rule went into effect and consumers did not receive the internet “one word at a time.” However, California, which is no stranger to using state laws to push for nationwide regulation, enacted their own net neutrality law in 2018 that has gone into effect after lawsuits attempting to block it failed.
While Title II net neutrality regulations were harmful at the federal level, the California approach could be equally as bad. A piecemeal approach to regulating the internet, which does not function within one state’s borders, forces internet companies to comply with the most stringent rules. The repercussions of California’s flawed law are already surfacing for consumers. Due to California’s ban on sponsored data, AT&T recently announced they will be forced to end “Data Free TV” which allowed consumers to stream videos from in-house services, like HBO Max, without using data. Now, consumers must be connected to Wi-Fi or use their cellular data to stream.
AT&T consumers are not alone. The Department of Veteran Affairs is also concerned that California’s net neutrality rules could hinder their ability to provide health care to veterans. Similar to the AT&T example, California’s net neutrality rule banning sponsored data programs could restrict veterans’ access to the VA Video Connect app that is subsidized to assist with low-income and rural veterans’ access. During the COVID-19 pandemic, telehealth has taken a prominent role for many Americans. Restricting access for veterans is inexcusable and demonstrates just how burdensome and far-reaching these hefty regulations are.
After the repeal of Title II net neutrality regulations, internet speeds increased and doomsday prophecies failed to materialize. California’s net neutrality rules are a step backwards and only serve to complicate internet regulations and harm consumers. Additionally, NTU will continue to urge Congress to codify a light-touch approach to internet regulation to avoid this yo-yoing of regulations. Especially during a pandemic that has redirected nearly every facet of Americans’ lives online, consumers should not have to fear reduced internet access or quality due to misguided and flawed policies.