Rules that treat the Internet like a public utility and prevent companies from blocking or slowing down some online traffic will go into effect Friday after a federal appeals court refused to delay them.
A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit said it won't postpone implementation of the net neutrality regulations even though AT&T, Verizon, and other companies are fighting against them. The panel said the United States Telecom Association, the plaintiffs in the case, did not satisfy the requirements for a stay.
The ruling is a setback for the industry, but the litigation will go on. The court accepted the Telecom Association's request to speed up the proceedings and asked the two sides to submit a schedule for briefing within two weeks.
Last February, the FCC agreed in a 3-2 vote to new rules that specifically prohibit service providers from blocking or slowing Internet traffic. To make sure the FCC has the authority to punish violators, the agency agreed to put Internet service in the same regulatory camp as the telephone and other utilities. That means providers would have to act in the "public interest" when supplying Internet service and refrain from "unjust or unreasonable" business practices.
The goal is to prevent Internet service companies like Verizon and AT&T from striking secret deals with content providers like Google, Netflix or Twitter to move their data faster and shutting out fresh competition.
Cable and wireless companies that provide much of the nation's bandwidth object to the rules. The lawsuit says the regulations are too onerous, violate federal law, and are arbitrary, and that the FCC didn't follow the proper procedure in creating the rules. U.S. Telecom says it has no problem following the regulations against blocking or slowing web traffic, but said it's not fair to treat broadband like public utilities.
Consumer groups and smaller startups, however, have cheered the regulations because they say it will prevent broadband companies from manipulating traffic and charging Internet "tolls."
Federal Communications Commission Chairman Tom Wheeler said Thursday's decision is a huge win for consumers. The National Cable & Telecommunications Association said it is glad the review will be sped up and that it's glad the court will review the appeal.
Google Opens Its Defense In Antitrust Case Alleging Monopoly Over Online Ad Technology
Google opened its defense against allegations that it holds an illegal monopoly on online advertising technology Friday with witness testimony saying the industry is vastly more complex and competitive than portrayed by the federal government.
"The industry has been exceptionally fluid over the last 18 years," said Scott Sheffer, a vice president for global partnerships at Google, the company's first witness at its antitrust trial in federal court in Alexandria.
The Justice Department and a coalition of states contend that Google built and maintained an illegal monopoly over the technology that facilitates the buying and selling of online ads seen by consumers.
Google counters that the government's case improperly focuses on a narrow type of online ads — essentially the rectangular ones that appear on the top and on the right-hand side of a webpage. In its opening statement, Google's lawyers said the Supreme Court has warned judges against taking action when dealing with rapidly emerging technology like what Sheffer described because of the risk of error or unintended consequences.
Google says defining the market so narrowly ignores the competition it faces from social media companies, Amazon, streaming TV providers and others who offer advertisers the means to reach online consumers.
Justice Department lawyers called witnesses to testify for two weeks before resting their case Friday afternoon, detailing the ways that automated ad exchanges conduct auctions in a matter of milliseconds to determine which ads are placed in front of which consumers and how much they cost.
The department contends the auctions are finessed in subtle ways that benefit Google to the exclusion of would-be competitors and in ways that prevent... Read More