Net neutrality rules take effect
Consumers unlikely to notice difference
NEW YORK – New rules that treat the Internet like a public utility and prohibit blocking, slowing and creating paid fast lanes for online traffic took effect Friday.
Cable and telecom industry groups have sued to have the rules thrown out, arguing they are too onerous. But on Thursday, a federal appeals court declined to block the rules from taking effect as the industry litigation against them proceeds. A court could still eventually overturn the rules.
There will be no immediate effect on how consumers and companies use the Internet. Broadband providers today typically treat content from different websites and services equally.
“We had the Internet for some time obeying such principles but they’ve never been codified. Now they have been codified,” said Nicholas Economides, a professor at New York University’s Stern business school and an expert on networks and telecommunications. “Consumers should not see any substantial difference.”
Regulators, consumer advocates and Internet companies like video site Vimeo and crafts marketplace Etsy had concerns about Internet providers’ power over Web traffic. For example, there were worries that being able to pay for a special Internet fast lane would let richer companies more easily reach users and stifle the growth of newer, poorer startups.
In enacting its rules, the FCC placed Internet service in the same regulatory camp as telephone service. That means providers have to act in the “public interest” when supplying Internet service and refrain from “unjust or unreasonable” business practices. The FCC can investigate complaints about industry practices that might violate net-neutrality principles, even if they’re not specifically prohibited by the rules.
Companies affected are cable companies like Comcast, phone companies that provide Internet service to people’s homes and smartphones, like AT&T and Verizon, and cellphone companies.
Internet providers are concerned about price regulation. The FCC says it won’t preapprove the prices companies set for Internet access. But consumers can complain about the cost of their service and the government can look into it.