Net neutrality update April 2017

The US Federal Communications Commission (FCC) has set out its plans to reverse the classification of broadband internet access as a Title II service under the Commission’s 2015 Open Internet Order.

The FCC proposes a return to a light-touch regulatory approach where such services are regulated as Title I information services (more background on this here). The FCC’s new Chairman Ajit Pai argued that utility-style Title II regulation is inappropriate and has stifled investment and innovation in broadband delivery; the announcement follows on from the FCC’s decision in January to close its investigation into zero rated data programmes (more on this here).

The Commission invited comments on its proposals in a Notice of Proposed Rulemaking, which also sets out proposals to eliminate the FCC’s Internet conduct standard and seeks comments on how the FCC should in future approach the bright-line rules adopted in 2015 (more background on these here).

The FCC previously voted to “protect small businesses from needless regulation” by exempting them from reporting and transparency obligations set out in the 2015 Open Internet Order. It argued that this will allow them to “devote more resources to operating, improving and building out their networks.” This month the FCC also ended price caps on many business data lines in reflection of the increased competition in the marketplace and to remove regulatory barriers to further investment.

Also this month the Canadian Radio-television and Telecommunications Commission (CRTC) announced a strengthening of its commitment to net neutrality with the publication of a new framework regarding differential pricing practices. The CRTC declared that “Internet service providers should treat data traffic equally to foster consumer choice, innovation and the free exchange of ideas.” It also announced that Quebecor Inc’s Videotron can no longer offer zero rated music streaming to wireless customers; Videotron must ensure its Unlimited Music Service comes into compliance within 90 days.

The NLTimes reported on a court ruling that T-Mobile Netherlands’ zero-rated music service does not violate net neutrality regulations, following an investigation by the Netherlands Authority for Consumers and Markets (ACM), more background on this here and here. While zero-rating is not allowed by Dutch law, European net neutrality regulations (more here) do not explicitly forbid it; the court ruled that the Netherlands should not contradict European rules.