Controlling Our Brave New (Digital) World

Now that Net Neutrality rules have been eliminated by Trump’s FCC, the question is: how will the repeal affect ordinary Americans? What consequences will be seen by the millions of Americans who turn increasingly to the Internet for everything from information to entertainment to commerce?

The Brookings Institution has at least a preliminary answer.

On June 11, 2018, the Federal Communications Commission’s repeal of the Open Internet Order—the net neutrality rules—went into effect. In the wake of this change, Americans are wondering how the repeal will affect them, and what it means for the future of internet access. Though consumers may not see changes quickly, the shift on net neutrality undermines the nation’s history on network regulation, creating a new era in how these networks operate in America.

So–in this brave “new era,” what can we expect?

The “quick and dirty” answer is: it depends. For one thing, there is a pending court challenge to the FCC’s authority to repeal Net Neutrality. For another, the Senate has passed Senate Joint Resolution 52, officially disapproving the repeal.  (Under the Congressional Review Act,  Congress can undo recently created rules by federal agencies.)

It still has to pass in the House, and then be signed by the president, which makes its prospects dicey, but perhaps Mueller will have completed his investigation…

That said, the need for a vote in the House should make protection of Net Neutrality an issue in the upcoming midterms. Every Congressional candidate should be asked whether they will vote to reinstate the rules. In December of last year, the Hill reported that 83% of Americans support Net Neutrality.

The pending court case is a consolidation of twelve separate challenges to the FCC’s authority to repeal the rules. The 12 lawsuits were filed by more than three dozen entities, including state attorneys general, consumer advocacy groups, and tech companies.

(If there is a Justice Kavanaugh sitting on the Supreme Court, and the case reaches the high court, its prospects dim: Kavanaugh is on record opposing Net Neutrality on the grounds that Internet providers are publishers, and protected from government interference by the First Amendment. Equating companies like Verizon and AT&T with media outlets like the New York Times requires some convoluted logic. )

More encouraging, a number of states aren’t waiting for Congress or the courts. California, not surprisingly, looks to be first out of the gate with a “robust” protection of Net Neutrality, but a number of other states are in the process of crafting similar bills.

The latest version of the bill restores provisions that would prevent broadband providers from exempting some services from customers’ data caps and would ban providers from charging websites “access fees” to reach customers on a network or blocking or throttling content as it enters their networks from other networks, according to a fact sheet released by Wiener, Santiago, and state senator Kevin de León.

The enumerated practices are those that big telecom companies are expected to engage in now that the FCC has repealed national protections.

The new version of the bill needs to be approved by both houses of the California Legislature, then be signed by Governor Jerry Brown. From there, it could face legal challenges from the FCC, which prohibited states from adopting their own net neutrality protections when it repealed the national net neutrality rules. During the press conference, Santiago said the California bill would stand up to legal scrutiny. Legal experts have told WIRED they are unsure whether the FCC has authority to preempt state law on the issue.

As 83% of Americans understand (at least in this context), this administration’s indiscriminate war on all regulatory activity more often than not just favors big business over the rest of us.

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Net Neutrality

Well, they did it. Trump’s Verizon  puppet at the FCC–after a campaign of disinformation and downright dishonesty–got his (and Verizon’s) fondest wish: they voted yesterday to dispense with Obama-era rules protecting Net Neutrality.

If you are one of the many Americans who is unfamiliar with this policy, or unsure why it matters, Vox has a comprehensive explanation; if you have less time, Paul Krugman recently offered a concise analogy. Asked for his thoughts on the impending vote, and on the policy, he responded that

… for a democratic society, and also just for a society that is open to new ideas, level playing fields are really important. One of the great unifying things that we did very early on in our country’s history was to establish a postal service, where the cost of sending a letter was the same no matter who was sending it, no matter how far you were sending it…

We’ve done very, very well with providers not allowed to discriminate among different users. This is something that’s very much not broken. Why try to fix it?

This assault on Internet equality is just one of the myriad Trump Administration efforts to remake our country into a plutocracy–to make America “great” for the powerful and wealthy.

It gets harder and harder to keep track of the wholesale de-regulation that Trump insists will unleash the productivity of the market–the rollbacks of environmental regulations that keep our air breathable and our water drinkable, the withdrawal of measures to protect students from fraudulent private colleges and sexual assaults, reversal of regulations preventing fossil fuel companies from despoiling protected lands….I teach public policy, so following all of these efforts to eviscerate the rules of fair play (and not-so-incidentally, anything Obama did or favored) is part of my job–and I can’t begin to keep up.

Before the election of this monumentally ignorant man, I was not a huge fan of robust federalism, or the argument that state “laboratories of democracy” would, or at least could, constrain unwise federal policies. As I’ve watched sensible state governments respond to Trumpism by protecting immigrants, decriminalizing marijuana, enacting stringent environmental protections and demonstrating that raising taxes actually promotes economic growth, I’ve warmed to the wisdom of that argument.

And now…

Washington State has followed the shameful vote against Net Neutrality with an announcement that it will fill the void and protect Internet users: 

On the eve of an expected vote by the Federal Communications Commission to roll back crucial net neutrality rules, Gov. Jay Inslee joined Attorney General Bob Ferguson, legislators, and business leaders to announce state plans to preserve an open internet and protect Washington consumers from internet companies that are not transparent about costs or services.

Inslee wrote a letter to the FCC earlier this month, in which he made a strong case for the retention of current policy.

All Americans, as a matter of principle, should enjoy equal access to the educational, social and economic power of the internet. Ensuring this important technology remains free and unfettered is critical both to our personal freedoms and to our country’s economy,”

Making Washington State’s announcement, Inslee conceded that the FCC’s vote will preempt states from ensuring full net neutrality. But he said states can take a number of steps to promote an open internet and strengthen protections for consumers–and Washington intends to take them:

Hold companies to their commitments not to block websites, throttle speeds, or impose prioritization pricing

  • Direct the state’s Utilities and Transportation Commission (UTC) to establish a process for ISPs to certify that they will not engage in practices inconsistent with net neutrality principles.
  • Limit state-conferred benefits to ISPs that have made such certifications.
  • Limit applicability of UTC pole attachment rules to ISPs that are net neutral.
  • Review other state-conferred benefits such as easements and taxes.

Leverage the state’s power as a large purchaser of ISP and telecommunications services

  • Use the state government’s role as a big customer, and our ability to establish state master contracts used by localities, to incentivize Washington companies to adhere to net neutrality principles.
  • Pursue regulatory and legislative action to award contracts to vendors that meet net neutral business requirements.
  • Lead the exploration of a multi-state purchasing cooperative to procure internet service from providers that adhere to net neutrality principles.

Hold companies accountable for warranties made to consumers

  • Create a state-wide internet speed test. This will allow Washingtonians to test their own broadband speed at home, and submit the test to help appropriate state agencies determine what internet speeds consumers are receiving and where companies may be blocking or throttling.
  • Collaborate with legislators to strengthen our consumer protection laws to include the principles of net neutrality.

Encourage new entrants into the currently concentrated ISP market

  • Pursue legislation authorizing public utility districts and rural and urban port districts to provide retail ISP and telecommunications services.
  • Prohibit government-owned ISP services, such as municipal broadband networks, from engaging in blocking, throttling, or priority pricing for Internet services.

As one Washington state legislator asserted, state governments have the right to prevent a “reckless and power-intoxicated federal government from handing over access to the free flow of information to the largest corporations on this planet.”

If other states follow in Washington’s path, they will do more than protect an essential platform for American democratic discourse.

They’ll make a federalism fan out of this skeptic.

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Meanwhile, At The FCC….

Unlike many–most?–of Trump’s appointees, FCC Chairman Ajit Pai appears to know what he’s doing and how to do it. And that’s a big problem.

He’s already rolled back what The Street calls a “pillar of U.S. media ownership restrictions.

“Owners of local television stations will be permitted to buy a local radio station or newspaper in the same market after the Federal Communications Commissions on Thursday, Nov. 16, voted to lift the ban on cross-ownership that had stood since 1975. The agency, which has been fast eliminating restrictions long opposed by TV station companies, also eliminated a ban on two TV stations in the same market from entering into joint sales agreements to sell advertising.

The restrictions being lifted were intended to prevent any one political perspective from dominating a given media market. Here in Indianapolis, where right wing Sinclair is proposing purchase that will allow it to dominate the radio market, this new permissiveness is likely to facilitate a market blanketed with Fox-like, right wing propaganda.

FCC Chairman Ajit Pai, a Republican who orchestrated the changes, said the bans and other restrictions were no longer relevant given the advent of online news sources and the shrinking circulations of most local newspapers. The two Democrats on the five-person commission, echoing other critics, countered that Pai understated the importance and impact that local media sources continue to have despite the rise of Facebook Inc. and other social media platforms.

The damage this change will inflict pales, however, in comparison to Pai’s most cherished goal–the elimination of net neutrality rules.

As Time Magazine and a number of other news outlets have reported,

Federal Communications Commission Chairman Ajit Pai on Tuesday followed through on his pledge to repeal 2015 regulations designed to ensure that internet service providers treat all online content and apps equally, setting up a showdown with consumer groups and internet companies who fear the move will stifle competition and innovation.

The current rules, known as net neutrality, impose utility-style regulation on ISPs such as Comcast, AT&T and Verizon to prevent them from favoring their own digital services over those of their rivals.

Pai says he wants the FCC to stop “micromanaging” the Internet. What he calls micromanaging is what we used to call “regulating,” and although it is certainly possible to point to examples of excessive regulation, there was–and is–a reason for establishing “rules of the road.” The reasons for net neutrality rules are especially compelling.

As the Internet Association, a group composed of major internet companies such as Google and Amazon, put it,

“Consumers have little choice in their ISP, and service providers should not be allowed to use this gatekeeper position at the point of connection to discriminate against websites and apps.”

The group is fighting the change. So are many other organizations concerned with consumer rights.

Consumers Union predicted a repeal of net neutrality would allow ISPs to raise their prices and give preferential treatment to certain sites and apps.

“Strong net neutrality rules are vital to consumers’ everyday lives and essential to preserving the internet as we know it today — an open marketplace where websites large and small compete on equal terms and where information and ideas move freely,” said Jonathan Schwantes, the advocacy group’s senior policy counsel.

Two of the FCC’s five voting commissioners signaled they will oppose Pai’s plan.

Commissioner Jessica Rosenworcel derided Pai’s plan as “ridiculous and offensive to the millions of Americans who use the internet every day.”

Commissioner Mignon L. Clyburn skewered Pai’s proposals as “a giveaway to the nation’s largest communications companies, at the expense of consumers and innovation.”

Before being named to the FCC, Pai was an executive at Verizon. I’m sure that’s an irrelevant factoid.(cough, cough).

The last time net neutrality was attacked, John Oliver delivered such an effective argument against the change that the switchboards at the FCC were overwhelmed; his diatribe was said to have prompted some 150,000 calls. Scheduling the vote for the week after Thanksgiving is a rather transparent effort to avoid that sort of public outrage, an effort to change the rule while people are otherwise occupied.

Let’s not allow that strategy to work. I encourage everyone to click through, watch Oliver’s explanation of what’s at stake–and then call the FCC.

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