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The internet industry is suing California over its net neutrality law days ago.
The lawsuit, filed Wednesday by a major trade group representing broadband companies, is the second major lawsuit filed against the state over the law — the first was filed by the Justice Department.
On Sunday night, California Governor Jerry Brown signed what is considered the strictest net neutrality law in the country. Under the law, ISPs are not allowed to block or slow down certain types of content or apps, nor are they allowed to charge apps or companies for faster access to customers.
Hours later, the federal government filed a lawsuit claiming that California was “trying to subvert the federal government’s approach to Internet deregulation.” The U.S. Department of Justice argued that states cannot pass their own laws to regulate internet companies because broadband services cross state lines. It is fighting the administration over provisions in a 2017 order that repealed Obama-era federal net neutrality protections. The FCC said it could preempt state net neutrality laws under the order.
Daniel Lyons, an associate professor at Boston College Law School who specializes in telecommunications and internet regulation, told CNN that the coming legal battle could last months, if not longer.
The outcome depends a lot on the outcome. The California law is considered the most sweeping state-level net neutrality legislation passed to date, and other states are expected to use it as a blueprint for their own laws.
If California prevails in court, it would open the door for other states to take similar action. However, Lyons said the FCC may try to block their efforts with another order.
Lyons said California will likely claim the preemption provision is invalid, and the federal government will try to obtain an injunction to prevent the law from taking effect. In doing so, it claimed that the harm would be caused if the law was allowed to take effect.
“These attempts to obtain preliminary injunctions appear weak and will likely fail for the same reasons that the Internet Service Provider (ISP) industry was unable to obtain a suspension of the FCC’s pre-FCC net neutrality rules in 2015,” said telecom attorney Pantelis Michalopoulos. is a partner at Steptoe & Johnson LLP and has defended net neutrality cases. “ISPs have offered speculative theories as to why they would be irreparably harmed. These theories do not appear to meet the test for a preliminary injunction.”
Industry groups involved in the new lawsuit represent major companies such as AT&T, Comcast and Verizon, as well as other cable companies and wireless providers across the United States. The groups have previously lobbied against the state law. (CNN is owned by AT&T.)
“We oppose California’s action to regulate internet access because it could negatively impact service for millions of consumers and harm new investment and economic growth. Time and time again, Republican and Democratic administrations have embraced the idea that Federal law preempts such action,” industry groups Telecommunications, CTIA (Wireless Association), Internet and Television Association and Cable Television Association said in a statement. “We will continue working to ensure Congress passes bipartisan legislation that creates a permanent framework that protects the open internet consumers expect and deserve.”
In a statement Wednesday afternoon, Attorney General Xavier Becerra said the state would work to protect its new law.
“This lawsuit was brought by power brokers with a clear financial interest in maintaining control of the public’s access to online content. California is the economic engine of the nation and has the right to exercise its sovereignty under the Constitution, and we will do whatever it takes to do so.” “We can protect the access to information rights of our 40 million consumers by defending a free and open Internet,” Becerra said in a statement.
State Sen. Scott Wiener, one of the bill’s co-authors, previously told CNN that he expected ISPs to sue over the law.
“Internet service providers have every right to sue California, just as California has every right – and indeed obligation – to protect our residents’ access to an open Internet,” Weiner said after the trade group filed the lawsuit.
CNN Business (San Francisco) First published October 3, 2018: 5:46pm ET