Internet Legal Trends to Watch. Part 5: Net Neutrality

Congress and the Federal Communications Commission (FCC) are headed to a showdown over how and whether the FCC should regulate the flow of information over the internet. The FCC adopted a net neutrality order last December.

What Is Net Neutrality?

Very simply, net neutrality means setting traffic rules for the flow of data on the internet. When the net is neutral, all information regardless of its source is treated equally. There are no gatekeepers or roadblocks so reaching John Smith’s website is as easy as reaching the website of Google, Facebook or the Wall Street Journal.

Net neutrality is a plus for for consumers and start-up companies because net neutrality guarantees an even-playing field for all online content. On the minus side, analysts and broadband companies complain that internet regulations forcing net neutrality will inhibit capital investment, deter innovation, raise operating costs, and ultimately increase consumer prices

What Has the FCC Proposed?

The FCC net neutrality order in part provides that landline broadband providers can’t block legal websites. The order imposes fewer restrictions on wireless carriers than on wired carriers. While the order discourages landline broadband providers from offering faster delivery of data for money, the order doesn’t explicitly prohibit them from doing so.

Where Does Net Neutrality Stand?

There are questions about whether the FCC has the authority to regulate the internet. Verizon has already filed a lawsuit arguing that the FCC does not have the right. Both Democratic and Republican members of congress have threatened to block the FCC’s net neutrality regulations.