A divided Federal Communications Commission has approved new rules meant to prohibit broadband companies from interfering with Internet traffic flowing to their customers.
The 3-2 vote Tuesday marks a major victory for FCC Chairman Julius Genachowski, who has spent more than a year trying to craft a compromise.
The FCC’s three Democrats voted to pass the rules, while the two Republicans opposed them, calling them unnecessary regulation. The new rules are likely to face intense scrutiny on Capitol Hill once Republicans take over the House. Meanwhile, public interest groups decried the regulations as too weak, particularly for wireless systems.
Known as “net neutrality,” the rules prohibit phone and cable companies from favoring or discriminating against Internet content and services, such as those from rivals.
The rules require broadband providers to let subscribers access all legal online content, applications and services over their wired networks — including online calling services, Internet video and other Web applications that compete with their core businesses. But the rules give broadband providers flexibility to manage data on their systems to deal with problems such as network congestion and unwanted traffic including spam as long as they publicly disclose their network management practices.
The regulations prohibit unreasonable network discrimination — a category that FCC officials say would most likely include services that favor traffic from the broadband providers themselves or traffic from business partners that can pay for priority. The rules do, however, leave the door open for broadband providers to experiment with routing traffic from specialized services such as smart grids and home security systems over dedicated networks as long as these services are separate from the public Internet.
In addition, the regulations prohibit wireless carriers from blocking access to any websites or competing applications such as Internet calling services on mobile devices, and require them to disclose their network management practices, too. But the rules give wireless companies would get more leeway to manage data traffic because wireless systems have more bandwidth constraints than wired networks.
Genachowski said the regulations will prohibit broadband providers from abusing their control over the on-ramps that consumers use to get onto the Internet. He said the companies won’t be able to determine where their customers can go and what they can do online.
“Today, for the first time, we are adopting rules to preserve basic Internet values,” Genachowski said. “For the first time, we’ll have enforceable rules of the road to preserve Internet freedom and openness.”
Still, the final rules came as a disappointment to public interest groups. Even Genachowski’s two Democratic colleagues on the five-member FCC were disappointed, though they still voted to adopt the rules after concluding some safeguards are better than none.
They warn that the new regulations may not be strong enough to prevent broadband companies from picking winners and losers on the Internet, particularly on wireless systems, which will have more limited protections. They also worry that the rules don’t do enough to ensure that broadband providers cannot favor their own traffic or the traffic of business partners that can pay for priority — resulting in a two-tiered Internet.
“Today’s action could — and should — have gone further,” said Michael Copps, one of the other two Democrats on the commission. But, he added, the regulations do represent some progress “to put consumers — not Big Phone or Big Cable — in control of their online experiences.”
At the same time, the two Republicans on the FCC worried that the rules will discourage phone and cable companies from continuing to upgrade their networks by making it difficult for them to earn a healthy return on their investments. They also insist that the regulations are intended to fix a problem that does not exist, as all the major broadband providers have already pledged not to discriminate against Internet traffic on their networks.
“The Internet will be no more open tomorrow than it is today,” said Meredith Attwell Baker, a Republican.
Republicans on Capitol Hill vowed to try to block the new regulations. Kay Bailey Hutchison of Texas, the top Republican on the Senate Commerce Committee, plans to introduce a “resolution of disapproval” to try to overturn what she called “troubling regulatory overreach by the FCC.”
Robert McDowell, the FCC’s other Republican, predicted that the FCC will face court challenges to its regulatory authority, too. In April, a federal appeals court ruled that the agency had exceeded its existing authority in sanctioning Comcast Corp. for discriminating against online file-sharing traffic on its network — violating broad net neutrality principles first established by the FCC in 2005.
Those principles serve as a foundation for the formal regulations adopted Tuesday.
Apple and Google Face UK Investigation Into Mobile Browser Dominance
Apple and Google aren't giving consumers a genuine choice of mobile web browsers, a British watchdog said Friday in a report that recommends they face an investigation under new U.K. digital rules taking effect next year.
The Competition and Markets Authority took aim at Apple, saying the iPhone maker's tactics hold back innovation by stopping rivals from giving users new features like faster webpage loading. Apple does this by restricting progressive web apps, which don't need to be downloaded from an app store and aren't subject to app store commissions, the report said.
"This technology is not able to fully take off on iOS devices," the watchdog said in a provisional report on its investigation into mobile browsers that it opened after an initial study concluded that Apple and Google effectively have a chokehold on "mobile ecosystems."
The CMA's report also found that Apple and Google manipulate the choices given to mobile phone users to make their own browsers "the clearest or easiest option."
And it said that the a revenue-sharing deal between the two U.S. Big Tech companies "significantly reduces their financial incentives" to compete in mobile browsers on Apple's iOS operating system for iPhones.
Both companies said they will "engage constructively" with the CMA.
Apple said it disagreed with the findings and said it was concerned that the recommendations would undermine user privacy and security.
Google said the openness of its Android mobile operating system "has helped to expand choice, reduce prices and democratize access to smartphones and apps" and that it's "committed to open platforms that empower consumers."
It's the latest move by regulators on both sides of the Atlantic to crack down on the... Read More