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Biden DOJ Drops Lawsuit Against California for Passing Net Neutrality Rules

 3 years ago
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44 Attorneys General Ask Facebook to Abandon Instagram Kids

FTC and 46 States Sue Facebook in Massive Antitrust Suit

The suit demands that Facebook divest from WhatsApp and Instagram after years of anticompetitive behavior.
December 9, 2020, 8:04pm
Image: Hannah McKay-Pool/Getty Images

The Federal Trade Commission and the attorneys general of 46 states filed a complaint today to break up Facebook's "illegal monopolization" of social networks and its "multi-year course of unlawful conduct."

The FTC is alleging that the company is illegally maintaining its social networking monopoly through a "years-long course of anticompetitive conduct."

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A release on the FTC's website says that "the complaint alleges that Facebook has engaged in a systematic strategy—including its 2012 acquisition of up-and-coming rival Instagram, its 2014 acquisition of the mobile messaging app WhatsApp, and the imposition of anti competitive conditions on software developers—to eliminate threats to its monopoly."

The suit is a potentially existential threat: The FTC is seeking to break up Facebook and to force it to divest from Instagram and WhatsApp, prohibit the company from imposing anti competitive conditions on its software developers, and require it to seek approval for future acquisitions. 

“Personal social networking is central to the lives of millions of Americans,” Ian Conner, Director of the FTC’s Bureau of Competition, said. “Facebook’s actions to entrench and maintain its monopoly deny consumers the benefits of competition. Our aim is to roll back Facebook’s anticompetitive conduct and restore competition so that innovation and free competition can thrive.”

The lawsuit itself is blistering, and comes on the heels of a months-long investigation by the U.S. House of Representatives into tech monopolies: “Not content with attracting and retaining users through competition on the merits, Facebook has maintained its monopoly position by buying up companies that present competitive threats and by imposing restrictive policies that unjustifiably hinder actual or potential rivals that Facebook does not or cannot acquire.”

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Cited as evidence throughout the lawsuit are emails from Facebook CEO Mark Zuckerberg to his staff that identify Instagram and WhatsApp as threats, and that say that Facebook can get ahead of threats from other social media by purchasing competitors and implementing social mechanics they’ve developed that have proven more popular than Facebook’s core products: “Even if some new competitors spring up, buying Instagram, Path, Foursquare, etc now will give us a year or more to integrate their dynamics before anyone can get close to their scale again,” Zuckerberg wrote in an email to staff that was cited in the lawsuit. “Within that time, if we incorporate the social mechanics they were using, those new products won’t get much traction since we’ll already have their mechanics deployed at scale.”

Facebook’s influence on social media as a whole is obvious even to the casual user. Beyond buying Instagram and WhatsApp, certain features of Facebook’s social media empire are direct ripoffs of its competitors, which it can then deploy to its massive userbase. Instagram’s Stories was a direct clone of Snapchat Stories. Facebook Stories is a copy of Instagram Stories. Instagram Reels is a direct copy of TikTok, and much of the content on Reels is taken directly from TikTok and reposted on Reels. 

The complaint comes after more than a decade of Facebook amassing unprecedented power by consolidating social media competitors which it either acquires outright or copies and pushes out of the market. The negative impact this had on the world has been devastating. Misinformation, much of it distributed and even promoted via Facebook's algorithms, is rampant. Hate speech, which Facebook has been reluctant and unable to moderate, has resulted in real world violence and in some cases even genocide.

While Facebook is directly to blame for much of this, today's complaint shows that the government has been asleep at the wheel while giant corporations have acted as if antitrust law didn't apply to them or would never be enforced. That has been mostly true

It’s too early to say whether the suit will stick, but the FTC rolled this out with bombast, including a video explaining the lawsuit as well as a question-and-answer page on its website.

Tagged:Antitrust
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Biden DOJ Drops Lawsuit Against California for Passing Net Neutrality Rules

It’s the first step in what’s expected to be a major tech policy reversal from the Trump era.
February 9, 2021, 12:47pm
GettyImages-913450936GettyImages-913450936
Image: T.J. Kirkpatrick/Bloomberg via Getty Images

The Department of Justice has backed away from a Trump administration lawsuit against California for passing net neutrality rules. It’s the opening salvo in what is expected to be a stark reversal from Trump era policies friendly to major US telecom monopolies.

The DOJ on Monday formally dismissed the lawsuit, first filed in 2018 under former Trump U.S. Attorney General Jeff Sessions. 

The Department of Justice has backed away from a Trump administration lawsuit against California for passing net neutrality rules. It’s the opening salvo in what is expected to be a stark reversal from Trump era policies friendly to major US telecom monopolies.

The DOJ on Monday formally dismissed the lawsuit, first filed in 2018 under former Trump U.S. Attorney General Jeff Sessions. 

The law still faces a legal challenge from the broadband industry, the next hearing for which is scheduled for February 23. Should California prevail, the state will have its own net neutrality law that in some cases goes even further than the FCC rules the law was intended to replace.

The DOJ’s retreat was applauded by new Biden FCC boss Jessica Rosenworcel, who is widely expected to fully restore the federal rules.

“I am pleased that the Department of Justice has withdrawn this lawsuit,” Rosenworcel said.

“When the FCC, over my objection, rolled back its net neutrality policies, states like California sought to fill the void with their own laws,” she noted. “By taking this step, Washington is listening to the American people, who overwhelmingly support an open internet, and is charting a course to once again make net neutrality the law of the land.”

The FCC’s 2015 rules prevented ISPs from exploiting their regional monopolies to harm competitors and consumers. ISPs had spent years toying with blocking customers from being able to access internet voice services like Vonage, video apps like Skype, digital payment services like Google Wallet, or other services that compete with an ISP’s own offerings.

ISPs have also given themselves an unfair advantage in the streaming video wars by applying arbitrary and unnecessary broadband caps and overage fees when their broadband customers use competitors like Netflix, but not when a consumer uses an ISP’s own streaming service.

But net neutrality first gained widespread attention when Comcast was caught covertly throttling BitTorrent without informing users. As a result, the rules also required that ISPs be transparent about how they’re managing their networks, allowing consumers to better understand the kind of broadband connections they’re buying.

Surveys repeatedly found the rules enjoyed the bipartisan approval of a vast majority of Americans.

But the Trump FCC dismantled the rules anyway, falsely claiming they had stifled US network investment, and that restoring them would reverse the trend. Numerous studies, earnings reports, and executive statements have repeatedly proven both claims to be false.

While less talked about, the Trump FCC’s “restoring internet freedom” order went several steps beyond killing net neutrality.

The repeal dramatically curtailed the FCC’s authority over telecom monopolies, making it more difficult to police billing fraud. The repeal even attempted to ban states from protecting consumers, an effort later shot down by the courts, who noted the FCC couldn’t give up its consumer protection authority only to turn around and dictate state policy. 

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The law still faces a legal challenge from the broadband industry, the next hearing for which is scheduled for February 23. Should California prevail, the state will have its own net neutrality law that in some cases goes even further than the FCC rules the law was intended to replace.

The DOJ’s retreat was applauded by new Biden FCC boss Jessica Rosenworcel, who is widely expected to fully restore the federal rules.

“I am pleased that the Department of Justice has withdrawn this lawsuit,” Rosenworcel said.

“When the FCC, over my objection, rolled back its net neutrality policies, states like California sought to fill the void with their own laws,” she noted. “By taking this step, Washington is listening to the American people, who overwhelmingly support an open internet, and is charting a course to once again make net neutrality the law of the land.”

The FCC’s 2015 rules prevented ISPs from exploiting their regional monopolies to harm competitors and consumers. ISPs had spent years toying with blocking customers from being able to access internet voice services like Vonage, video apps like Skype, digital payment services like Google Wallet, or other services that compete with an ISP’s own offerings.

ISPs have also given themselves an unfair advantage in the streaming video wars by applying arbitrary and unnecessary broadband caps and overage fees when their broadband customers use competitors like Netflix, but not when a consumer uses an ISP’s own streaming service.

But net neutrality first gained widespread attention when Comcast was caught covertly throttling BitTorrent without informing users. As a result, the rules also required that ISPs be transparent about how they’re managing their networks, allowing consumers to better understand the kind of broadband connections they’re buying.

Surveys repeatedly found the rules enjoyed the bipartisan approval of a vast majority of Americans.

But the Trump FCC dismantled the rules anyway, falsely claiming they had stifled US network investment, and that restoring them would reverse the trend. Numerous studies, earnings reports, and executive statements have repeatedly proven both claims to be false.

While less talked about, the Trump FCC’s “restoring internet freedom” order went several steps beyond killing net neutrality.

The repeal dramatically curtailed the FCC’s authority over telecom monopolies, making it more difficult to police billing fraud. The repeal even attempted to ban states from protecting consumers, an effort later shot down by the courts, who noted the FCC couldn’t give up its consumer protection authority only to turn around and dictate state policy. 

The law still faces a legal challenge from the broadband industry, the next hearing for which is scheduled for February 23. Should California prevail, the state will have its own net neutrality law that in some cases goes even further than the FCC rules the law was intended to replace.

The DOJ’s retreat was applauded by new Biden FCC boss Jessica Rosenworcel, who is widely expected to fully restore the federal rules.

“I am pleased that the Department of Justice has withdrawn this lawsuit,” Rosenworcel said.

“When the FCC, over my objection, rolled back its net neutrality policies, states like California sought to fill the void with their own laws,” she noted. “By taking this step, Washington is listening to the American people, who overwhelmingly support an open internet, and is charting a course to once again make net neutrality the law of the land.”

The FCC’s 2015 rules prevented ISPs from exploiting their regional monopolies to harm competitors and consumers. ISPs had spent years toying with blocking customers from being able to access internet voice services like Vonage, video apps like Skype, digital payment services like Google Wallet, or other services that compete with an ISP’s own offerings.

ISPs have also given themselves an unfair advantage in the streaming video wars by applying arbitrary and unnecessary broadband caps and overage fees when their broadband customers use competitors like Netflix, but not when a consumer uses an ISP’s own streaming service.

But net neutrality first gained widespread attention when Comcast was caught covertly throttling BitTorrent without informing users. As a result, the rules also required that ISPs be transparent about how they’re managing their networks, allowing consumers to better understand the kind of broadband connections they’re buying.

Surveys repeatedly found the rules enjoyed the bipartisan approval of a vast majority of Americans.

But the Trump FCC dismantled the rules anyway, falsely claiming they had stifled US network investment, and that restoring them would reverse the trend. Numerous studies, earnings reports, and executive statements have repeatedly proven both claims to be false.

While less talked about, the Trump FCC’s “restoring internet freedom” order went several steps beyond killing net neutrality.

The repeal dramatically curtailed the FCC’s authority over telecom monopolies, making it more difficult to police billing fraud. The repeal even attempted to ban states from protecting consumers, an effort later shot down by the courts, who noted the FCC couldn’t give up its consumer protection authority only to turn around and dictate state policy. 

The law still faces a legal challenge from the broadband industry, the next hearing for which is scheduled for February 23. Should California prevail, the state will have its own net neutrality law that in some cases goes even further than the FCC rules the law was intended to replace.

The DOJ’s retreat was applauded by new Biden FCC boss Jessica Rosenworcel, who is widely expected to fully restore the federal rules.

“I am pleased that the Department of Justice has withdrawn this lawsuit,” Rosenworcel said.

“When the FCC, over my objection, rolled back its net neutrality policies, states like California sought to fill the void with their own laws,” she noted. “By taking this step, Washington is listening to the American people, who overwhelmingly support an open internet, and is charting a course to once again make net neutrality the law of the land.”

The FCC’s 2015 rules prevented ISPs from exploiting their regional monopolies to harm competitors and consumers. ISPs had spent years toying with blocking customers from being able to access internet voice services like Vonage, video apps like Skype, digital payment services like Google Wallet, or other services that compete with an ISP’s own offerings.

ISPs have also given themselves an unfair advantage in the streaming video wars by applying arbitrary and unnecessary broadband caps and overage fees when their broadband customers use competitors like Netflix, but not when a consumer uses an ISP’s own streaming service.

But net neutrality first gained widespread attention when Comcast was caught covertly throttling BitTorrent without informing users. As a result, the rules also required that ISPs be transparent about how they’re managing their networks, allowing consumers to better understand the kind of broadband connections they’re buying.

Surveys repeatedly found the rules enjoyed the bipartisan approval of a vast majority of Americans.

But the Trump FCC dismantled the rules anyway, falsely claiming they had stifled US network investment, and that restoring them would reverse the trend. Numerous studies, earnings reports, and executive statements have repeatedly proven both claims to be false.

While less talked about, the Trump FCC’s “restoring internet freedom” order went several steps beyond killing net neutrality.

The repeal dramatically curtailed the FCC’s authority over telecom monopolies, making it more difficult to police billing fraud. The repeal even attempted to ban states from protecting consumers, an effort later shot down by the courts, who noted the FCC couldn’t give up its consumer protection authority only to turn around and dictate state policy. 

The law still faces a legal challenge from the broadband industry, the next hearing for which is scheduled for February 23. Should California prevail, the state will have its own net neutrality law that in some cases goes even further than the FCC rules the law was intended to replace.

The DOJ’s retreat was applauded by new Biden FCC boss Jessica Rosenworcel, who is widely expected to fully restore the federal rules.

“I am pleased that the Department of Justice has withdrawn this lawsuit,” Rosenworcel said.

“When the FCC, over my objection, rolled back its net neutrality policies, states like California sought to fill the void with their own laws,” she noted. “By taking this step, Washington is listening to the American people, who overwhelmingly support an open internet, and is charting a course to once again make net neutrality the law of the land.”

The FCC’s 2015 rules prevented ISPs from exploiting their regional monopolies to harm competitors and consumers. ISPs had spent years toying with blocking customers from being able to access internet voice services like Vonage, video apps like Skype, digital payment services like Google Wallet, or other services that compete with an ISP’s own offerings.

ISPs have also given themselves an unfair advantage in the streaming video wars by applying arbitrary and unnecessary broadband caps and overage fees when their broadband customers use competitors like Netflix, but not when a consumer uses an ISP’s own streaming service.

But net neutrality first gained widespread attention when Comcast was caught covertly throttling BitTorrent without informing users. As a result, the rules also required that ISPs be transparent about how they’re managing their networks, allowing consumers to better understand the kind of broadband connections they’re buying.

Surveys repeatedly found the rules enjoyed the bipartisan approval of a vast majority of Americans.

But the Trump FCC dismantled the rules anyway, falsely claiming they had stifled US network investment, and that restoring them would reverse the trend. Numerous studies, earnings reports, and executive statements have repeatedly proven both claims to be false.

While less talked about, the Trump FCC’s “restoring internet freedom” order went several steps beyond killing net neutrality.

The repeal dramatically curtailed the FCC’s authority over telecom monopolies, making it more difficult to police billing fraud. The repeal even attempted to ban states from protecting consumers, an effort later shot down by the courts, who noted the FCC couldn’t give up its consumer protection authority only to turn around and dictate state policy. 

The law still faces a legal challenge from the broadband industry, the next hearing for which is scheduled for February 23. Should California prevail, the state will have its own net neutrality law that in some cases goes even further than the FCC rules the law was intended to replace.

The DOJ’s retreat was applauded by new Biden FCC boss Jessica Rosenworcel, who is widely expected to fully restore the federal rules.

“I am pleased that the Department of Justice has withdrawn this lawsuit,” Rosenworcel said.

“When the FCC, over my objection, rolled back its net neutrality policies, states like California sought to fill the void with their own laws,” she noted. “By taking this step, Washington is listening to the American people, who overwhelmingly support an open internet, and is charting a course to once again make net neutrality the law of the land.”

The FCC’s 2015 rules prevented ISPs from exploiting their regional monopolies to harm competitors and consumers. ISPs had spent years toying with blocking customers from being able to access internet voice services like Vonage, video apps like Skype, digital payment services like Google Wallet, or other services that compete with an ISP’s own offerings.

ISPs have also given themselves an unfair advantage in the streaming video wars by applying arbitrary and unnecessary broadband caps and overage fees when their broadband customers use competitors like Netflix, but not when a consumer uses an ISP’s own streaming service.

But net neutrality first gained widespread attention when Comcast was caught covertly throttling BitTorrent without informing users. As a result, the rules also required that ISPs be transparent about how they’re managing their networks, allowing consumers to better understand the kind of broadband connections they’re buying.

Surveys repeatedly found the rules enjoyed the bipartisan approval of a vast majority of Americans.

But the Trump FCC dismantled the rules anyway, falsely claiming they had stifled US network investment, and that restoring them would reverse the trend. Numerous studies, earnings reports, and executive statements have repeatedly proven both claims to be false.

While less talked about, the Trump FCC’s “restoring internet freedom” order went several steps beyond killing net neutrality.

The repeal dramatically curtailed the FCC’s authority over telecom monopolies, making it more difficult to police billing fraud. The repeal even attempted to ban states from protecting consumers, an effort later shot down by the courts, who noted the FCC couldn’t give up its consumer protection authority only to turn around and dictate state policy. 

The law still faces a legal challenge from the broadband industry, the next hearing for which is scheduled for February 23. Should California prevail, the state will have its own net neutrality law that in some cases goes even further than the FCC rules the law was intended to replace.

The DOJ’s retreat was applauded by new Biden FCC boss Jessica Rosenworcel, who is widely expected to fully restore the federal rules.

“I am pleased that the Department of Justice has withdrawn this lawsuit,” Rosenworcel said.

“When the FCC, over my objection, rolled back its net neutrality policies, states like California sought to fill the void with their own laws,” she noted. “By taking this step, Washington is listening to the American people, who overwhelmingly support an open internet, and is charting a course to once again make net neutrality the law of the land.”

The FCC’s 2015 rules prevented ISPs from exploiting their regional monopolies to harm competitors and consumers. ISPs had spent years toying with blocking customers from being able to access internet voice services like Vonage, video apps like Skype, digital payment services like Google Wallet, or other services that compete with an ISP’s own offerings.

ISPs have also given themselves an unfair advantage in the streaming video wars by applying arbitrary and unnecessary broadband caps and overage fees when their broadband customers use competitors like Netflix, but not when a consumer uses an ISP’s own streaming service.

But net neutrality first gained widespread attention when Comcast was caught covertly throttling BitTorrent without informing users. As a result, the rules also required that ISPs be transparent about how they’re managing their networks, allowing consumers to better understand the kind of broadband connections they’re buying.

Surveys repeatedly found the rules enjoyed the bipartisan approval of a vast majority of Americans.

But the Trump FCC dismantled the rules anyway, falsely claiming they had stifled US network investment, and that restoring them would reverse the trend. Numerous studies, earnings reports, and executive statements have repeatedly proven both claims to be false.

While less talked about, the Trump FCC’s “restoring internet freedom” order went several steps beyond killing net neutrality.

The repeal dramatically curtailed the FCC’s authority over telecom monopolies, making it more difficult to police billing fraud. The repeal even attempted to ban states from protecting consumers, an effort later shot down by the courts, who noted the FCC couldn’t give up its consumer protection authority only to turn around and dictate state policy. 

Advertisement

The law still faces a legal challenge from the broadband industry, the next hearing for which is scheduled for February 23. Should California prevail, the state will have its own net neutrality law that in some cases goes even further than the FCC rules the law was intended to replace.

The DOJ’s retreat was applauded by new Biden FCC boss Jessica Rosenworcel, who is widely expected to fully restore the federal rules.

“I am pleased that the Department of Justice has withdrawn this lawsuit,” Rosenworcel said.

“When the FCC, over my objection, rolled back its net neutrality policies, states like California sought to fill the void with their own laws,” she noted. “By taking this step, Washington is listening to the American people, who overwhelmingly support an open internet, and is charting a course to once again make net neutrality the law of the land.”

The FCC’s 2015 rules prevented ISPs from exploiting their regional monopolies to harm competitors and consumers. ISPs had spent years toying with blocking customers from being able to access internet voice services like Vonage, video apps like Skype, digital payment services like Google Wallet, or other services that compete with an ISP’s own offerings.

ISPs have also given themselves an unfair advantage in the streaming video wars by applying arbitrary and unnecessary broadband caps and overage fees when their broadband customers use competitors like Netflix, but not when a consumer uses an ISP’s own streaming service.

But net neutrality first gained widespread attention when Comcast was caught covertly throttling BitTorrent without informing users. As a result, the rules also required that ISPs be transparent about how they’re managing their networks, allowing consumers to better understand the kind of broadband connections they’re buying.

Surveys repeatedly found the rules enjoyed the bipartisan approval of a vast majority of Americans.

But the Trump FCC dismantled the rules anyway, falsely claiming they had stifled US network investment, and that restoring them would reverse the trend. Numerous studies, earnings reports, and executive statements have repeatedly proven both claims to be false.

While less talked about, the Trump FCC’s “restoring internet freedom” order went several steps beyond killing net neutrality.

The repeal dramatically curtailed the FCC’s authority over telecom monopolies, making it more difficult to police billing fraud. The repeal even attempted to ban states from protecting consumers, an effort later shot down by the courts, who noted the FCC couldn’t give up its consumer protection authority only to turn around and dictate state policy. 

The law still faces a legal challenge from the broadband industry, the next hearing for which is scheduled for February 23. Should California prevail, the state will have its own net neutrality law that in some cases goes even further than the FCC rules the law was intended to replace.

The DOJ’s retreat was applauded by new Biden FCC boss Jessica Rosenworcel, who is widely expected to fully restore the federal rules.

“I am pleased that the Department of Justice has withdrawn this lawsuit,” Rosenworcel said.

“When the FCC, over my objection, rolled back its net neutrality policies, states like California sought to fill the void with their own laws,” she noted. “By taking this step, Washington is listening to the American people, who overwhelmingly support an open internet, and is charting a course to once again make net neutrality the law of the land.”

The FCC’s 2015 rules prevented ISPs from exploiting their regional monopolies to harm competitors and consumers. ISPs had spent years toying with blocking customers from being able to access internet voice services like Vonage, video apps like Skype, digital payment services like Google Wallet, or other services that compete with an ISP’s own offerings.

ISPs have also given themselves an unfair advantage in the streaming video wars by applying arbitrary and unnecessary broadband caps and overage fees when their broadband customers use competitors like Netflix, but not when a consumer uses an ISP’s own streaming service.

But net neutrality first gained widespread attention when Comcast was caught covertly throttling BitTorrent without informing users. As a result, the rules also required that ISPs be transparent about how they’re managing their networks, allowing consumers to better understand the kind of broadband connections they’re buying.

Surveys repeatedly found the rules enjoyed the bipartisan approval of a vast majority of Americans.

But the Trump FCC dismantled the rules anyway, falsely claiming they had stifled US network investment, and that restoring them would reverse the trend. Numerous studies, earnings reports, and executive statements have repeatedly proven both claims to be false.

While less talked about, the Trump FCC’s “restoring internet freedom” order went several steps beyond killing net neutrality.

The repeal dramatically curtailed the FCC’s authority over telecom monopolies, making it more difficult to police billing fraud. The repeal even attempted to ban states from protecting consumers, an effort later shot down by the courts, who noted the FCC couldn’t give up its consumer protection authority only to turn around and dictate state policy. 

The law still faces a legal challenge from the broadband industry, the next hearing for which is scheduled for February 23. Should California prevail, the state will have its own net neutrality law that in some cases goes even further than the FCC rules the law was intended to replace.

The DOJ’s retreat was applauded by new Biden FCC boss Jessica Rosenworcel, who is widely expected to fully restore the federal rules.

“I am pleased that the Department of Justice has withdrawn this lawsuit,” Rosenworcel said.

“When the FCC, over my objection, rolled back its net neutrality policies, states like California sought to fill the void with their own laws,” she noted. “By taking this step, Washington is listening to the American people, who overwhelmingly support an open internet, and is charting a course to once again make net neutrality the law of the land.”

The FCC’s 2015 rules prevented ISPs from exploiting their regional monopolies to harm competitors and consumers. ISPs had spent years toying with blocking customers from being able to access internet voice services like Vonage, video apps like Skype, digital payment services like Google Wallet, or other services that compete with an ISP’s own offerings.

ISPs have also given themselves an unfair advantage in the streaming video wars by applying arbitrary and unnecessary broadband caps and overage fees when their broadband customers use competitors like Netflix, but not when a consumer uses an ISP’s own streaming service.

But net neutrality first gained widespread attention when Comcast was caught covertly throttling BitTorrent without informing users. As a result, the rules also required that ISPs be transparent about how they’re managing their networks, allowing consumers to better understand the kind of broadband connections they’re buying.

Surveys repeatedly found the rules enjoyed the bipartisan approval of a vast majority of Americans.

But the Trump FCC dismantled the rules anyway, falsely claiming they had stifled US network investment, and that restoring them would reverse the trend. Numerous studies, earnings reports, and executive statements have repeatedly proven both claims to be false.

While less talked about, the Trump FCC’s “restoring internet freedom” order went several steps beyond killing net neutrality.

The repeal dramatically curtailed the FCC’s authority over telecom monopolies, making it more difficult to police billing fraud. The repeal even attempted to ban states from protecting consumers, an effort later shot down by the courts, who noted the FCC couldn’t give up its consumer protection authority only to turn around and dictate state policy. 

The law still faces a legal challenge from the broadband industry, the next hearing for which is scheduled for February 23. Should California prevail, the state will have its own net neutrality law that in some cases goes even further than the FCC rules the law was intended to replace.

The DOJ’s retreat was applauded by new Biden FCC boss Jessica Rosenworcel, who is widely expected to fully restore the federal rules.

“I am pleased that the Department of Justice has withdrawn this lawsuit,” Rosenworcel said.

“When the FCC, over my objection, rolled back its net neutrality policies, states like California sought to fill the void with their own laws,” she noted. “By taking this step, Washington is listening to the American people, who overwhelmingly support an open internet, and is charting a course to once again make net neutrality the law of the land.”

The FCC’s 2015 rules prevented ISPs from exploiting their regional monopolies to harm competitors and consumers. ISPs had spent years toying with blocking customers from being able to access internet voice services like Vonage, video apps like Skype, digital payment services like Google Wallet, or other services that compete with an ISP’s own offerings.

ISPs have also given themselves an unfair advantage in the streaming video wars by applying arbitrary and unnecessary broadband caps and overage fees when their broadband customers use competitors like Netflix, but not when a consumer uses an ISP’s own streaming service.

But net neutrality first gained widespread attention when Comcast was caught covertly throttling BitTorrent without informing users. As a result, the rules also required that ISPs be transparent about how they’re managing their networks, allowing consumers to better understand the kind of broadband connections they’re buying.

Surveys repeatedly found the rules enjoyed the bipartisan approval of a vast majority of Americans.

But the Trump FCC dismantled the rules anyway, falsely claiming they had stifled US network investment, and that restoring them would reverse the trend. Numerous studies, earnings reports, and executive statements have repeatedly proven both claims to be false.

While less talked about, the Trump FCC’s “restoring internet freedom” order went several steps beyond killing net neutrality.

The repeal dramatically curtailed the FCC’s authority over telecom monopolies, making it more difficult to police billing fraud. The repeal even attempted to ban states from protecting consumers, an effort later shot down by the courts, who noted the FCC couldn’t give up its consumer protection authority only to turn around and dictate state policy. 

In response to federal apathy to its consumer protection responsibilities, numerous states like California, Maine, and Washington stepped in to pass their own state level protections, a major reason why ISP behavior wasn’t worse in the wake of the federal repeal.

When ISPs like Comcast and AT&T failed to derail California's proposed law using procedural gamesmanship, the Trump DOJ quickly stepped in to help, filing suit against California in 2018 for what it claimed at the time was an “extreme and illegal” effort to protect US consumers. 

In response to federal apathy to its consumer protection responsibilities, numerous states like California, Maine, and Washington stepped in to pass their own state level protections, a major reason why ISP behavior wasn’t worse in the wake of the federal repeal.

When ISPs like Comcast and AT&T failed to derail California's proposed law using procedural gamesmanship, the Trump DOJ quickly stepped in to help, filing suit against California in 2018 for what it claimed at the time was an “extreme and illegal” effort to protect US consumers. 

Last month, California Representative Anna Eshoo and twelve other lawmakers sent a letter to the Biden DOJ, asking it to reverse course and drop the lawsuit. 

“In January, my California colleagues and I asked the DOJ to withdraw from the Trump Administration lawsuit against California'slaw,” Eshoo said on Twitter. “Today I'm glad to see the DOJ fulfilled that request and is standing by a free and open internet.”

Under the law, the party that controls the White House enjoys a 3-2 partisan majority at both the FCC and FTC. So while Rosenworcel is expected to fully restore net neutrality rules in time, that can’t happen until the Biden Administration selects—and Congress confirms—a third Democratic Commissioner.

“In January, my California colleagues and I asked the DOJ to withdraw from the Trump Administration lawsuit against California'slaw,” Eshoo said on Twitter. “Today I'm glad to see the DOJ fulfilled that request and is standing by a free and open internet.”

Under the law, the party that controls the White House enjoys a 3-2 partisan majority at both the FCC and FTC. So while Rosenworcel is expected to fully restore net neutrality rules in time, that can’t happen until the Biden Administration selects—and Congress confirms—a third Democratic Commissioner.


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