Us Telecom Vs. Fcc.docx

US TELECOM vs. FEDERAL COMMUNICATIONS COMMISSION (US COURT OF APPEALS No. 15-1063 – JUNE 14, 2016)

open internet rules “will preserve and facilitate the ‘virtuous circle’ of innovation that has driven the explosive growth of the Internet.” WHO WON? FCC

FACTS 1.

The 2014 D.C. Circuit court decision Verizon v. FCC vacated portions of the FCC Open Internet Order 2010 because it was determined that they could only apply to common carriers. At the time, broadband services had historically been classified as "information services," a decision made by the FCC in the early 2000's and unsuccessfully challenged in court

2.

In 2015, the FCC’s Open Internet Order reclassified broadband services as "telecommunications services," giving broadband status as a "common carrier" under Title II of the Communications Act of 1934.

3.

Petitioner US Telecom Association now challenges the FCC's 2015 Open Internet Order, stating that the reclassification of broadband service as a telecommunication service subject to common carrier treatment was improper and unreasonable.

4.

The FCC claims that broadband service satisfies the statutory definition of a telecommunications service: “the offering of telecommunications for a fee directly to the public.”

ISSUE WON the FCC validly reclassified broadband/internet as public utility and covered under Title II of the Communications Act as a “common carrier”? YES. HELD 

The US Court of Appeals ruled in favor of the FCC. The Court concluded that broadband services provide the unadulterated transmission of messages via computer processing, in that they connect users to third party content.

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Content from edge providers like Netflix and Youtube have “transformed nearly every aspect of our lives. As such, a broadband service provider makes a stand-alone offering of telecommunications, and are within the definition of a “telecommunications service” as determined by the FCC.

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As regards the rules on imposed by the FCC on broadband providers (mentioned in the Verizon vs. FCC case), their justification for the open internet rules was sufficient, as the Court had already decided in Verizon that