Net neutrality has been a hotly debated issue for years, with regulations frequently changing based on political shifts. Recently, the 6th Circuit Court of Appeals struck down the Federal Communications Commission’s (FCC) latest net neutrality policy, setting progress back significantly.
Why This Decision Is Concerning
This ruling could create serious challenges for small and medium-sized businesses, placing them at a disadvantage against larger corporations. The online playing field may no longer be fair without net neutrality protections.
The Impact of Loper Bright Enterprises v. Raimondo
In June 2024, the U.S. Supreme Court ruled on Loper Bright Enterprises v. Raimondo, a case involving a small fishing company and the National Marine Fisheries Service (NMFS). The case revolved around whether the government could require fishing boats to pay for onboard inspectors to enforce catch limits. Initially, lower courts sided with the NMFS, but the Supreme Court overturned these rulings with a 6-to-3 decision.
This ruling effectively dismantled the “Chevron deference,” a legal principle established 40 years ago that allowed federal agencies to interpret laws related to their areas of expertise. Under this principle, agencies had the authority to fill in legislative gaps, but now courts hold the final say in such matters. This change affects numerous regulations, including net neutrality.
The Domino Effect on Net Neutrality
On October 31, 2024, the Ohio Telecom Association challenged the FCC’s Safeguarding and Securing the Open Internet Order in Ohio Telecom Association v. FCC. The 6th Circuit Court of Appeals ruled against the FCC, citing the Supreme Court’s recent Loper Bright decision. This decision effectively nullified the FCC’s authority to enforce net neutrality regulations.
The Consequences of Losing Net Neutrality
Since 2015, net neutrality policies have fluctuated with different administrations, but the recent ruling removes federal protections entirely. The FCC’s regulations had classified Internet Service Providers (ISPs) as “telecommunications services” which fall under stricter regulations. However, the court ruled that ISPs should be classified as “information services” placing them outside the FCC’s jurisdiction. Now, only state-level protections remain, and reinstating federal regulations would require congressional action.
How Businesses Could Suffer Without Net Neutrality
A comprehensive neutrality law provides baseline protections that ensure fair competition and equal access to online resources. Without these safeguards, businesses and consumers could both face several challenges.
ISPs Could Control Content Delivery
Without net neutrality, ISPs could prioritize certain businesses over others. For example, a large corporation that owns an ISP could covertly slow down or block access to smaller competitors’ websites, giving themselves an unfair market advantage. This could harm small businesses that rely on equal access to customers.
Reduced Innovation and Competition
Net neutrality levels the playing field, allowing startups and smaller businesses to compete with established corporations based on product quality rather than financial power. Without it, larger businesses could outspend their competitors to secure better service, stifling innovation and growth.
ISPs Could Exploit Their Market Power
ISPs could behave like monopolies without net neutrality, charging higher prices without improving service quality. Areas with limited ISP options could see price hikes and poorer service, deepening the digital divide and making it harder for people to access reliable Internet.
The Need for Legislative Action
Net neutrality is crucial for maintaining fair competition and ensuring equal access to information. If you believe in the importance of an open Internet, consider contacting your representatives and urging them to support legislation that reinstates net neutrality protections.
To learn more about technology and the ongoing struggle of Net Neutrality, check out our blog articles on the subject.