A hot potato: A recent Supreme Court decision has cemented a state’s authority to regulate internet service providers since the FCC can’t. The Supreme Court has denied certiorari in New York Telecommunications v. Attorney General Letitia James. The denial means that New York’s hotly contested Affordable Broadband Act stands. More importantly, it sets a precedent for states to regulate broadband providers in the absence of FCC guidance.
On Monday, the US Supreme Court shot down internet service providers’ challenge to New York’s Affordable Broadband Act (ABA). The contentious law requires ISPs to provide service plans for low-income households. It regulates the monthly rates at $15 for 25Mbps and $20 for 200Mbps for those who qualify.
Lobbyists first challenged the law in 2021, saying that states cannot dictate rates to service providers. A US District judge agreed, effectively blocking the law. However, the Second Circuit US Court of Appeals reversed that ruling in April, upholding the law. The appeals panel said that the FCC stripped itself of regulatory authority when Chair Ajit Pai repealed Title II common carrier provisions for service providers. Therefore, it falls upon the state to make regulatory decisions over the industry within its jurisdiction.
Of course, ISPs hated to hear that, so in August, six trade groups took the matter to the Supreme Court, arguing that the New York law forces service providers to charge