Trade groups claimed the state law is preempted by former Federal Communications Commission Chairman Ajit Pai’s repeal of net neutrality rules. Pai’s repeal placed ISPs under the more forgiving Title I regulatory framework instead of the common-carrier framework in Title II of the Communications Act. 2nd Circuit judges did not find this argument convincing:
Second, the ABA is not conflict-preempted by the Federal Communications Commission’s 2018 order classifying broadband as an information service. That order stripped the agency of its authority to regulate the rates charged for broadband Internet, and a federal agency cannot exclude states from regulating in an area where the agency itself lacks regulatory authority. Accordingly, we REVERSE the judgment of the district court and VACATE the permanent injunction.
This is the best summary I could come up with:
A federal appeals court today reversed a ruling that prevented New York from enforcing a law requiring Internet service providers to sell $15 broadband plans to low-income consumers.
Today, the US Court of Appeals for the 2nd Circuit reversed the ruling and vacated the permanent injunction that barred enforcement of the state law.
Trade groups claimed the state law is preempted by former Federal Communications Commission Chairman Ajit Pai’s repeal of net neutrality rules.
The judges’ reasoning is similar to what a different appeals court said in 2019 when it rejected Pai’s attempt to preempt all state net neutrality laws.
Coincidentally, the 2nd Circuit issued its opinion one day after current FCC leadership reclassified broadband again in order to restore net neutrality rules.
The FCC itself won’t necessarily try to preempt New York’s law, but the agency’s net neutrality order does specifically reject rate regulation at the federal level.
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