Complete Story
08/26/2016
Sixth Circuit Protects Federalism from an Overreaching Federal Communications Commission
With the U.S. Court of Appeals for the DC Circuit granting it unprecedented authority over broadband companies in its June 14, 2016 network neutrality ruling, the Federal Communication Commission’s (FCC) regulatory authority over the internet is on the rise. However, a ruling last week by the Sixth Circuit, which overturned an FCC attempt to interfere with the internal affairs of two states’ broadband markets, reminded the Commission that there are limits to its power under the Telecommunications Act of 1996. Consistent with an amicus brief filed in the case by Washington Legal Foundation (and on behalf of one of the authors of this post), the court held that FCC that may not act in contravention of federalism principles and the rule of law.
In order to delimit the powers of their internal subdivisions, the legislatures of North Carolina and Tennessee passed laws demarcating the geographic scope of their municipalities’ broadband programs. Apparently concerned about inflicting unfair competitive distortions in the broadband market, they sought to curb the monopolistic tendencies of government-provided internet access.
