The
U.S. House of Representatives has passed a bill that would prohibit the FCC
from regulating Internet Service Provider rates. While one surely can appreciate the merits of
such legislation, House Republicans have created a remarkably flawed document.
The
drafters do not seem to understand that the Communications Act, which the bill
would amend, vests the FCC with jurisdiction in Section 208 to oversee “charges,
classifications, regulations or practices.”
H.R. 2666 creates the kind of ambiguity that allows the FCC to remedy
through its preferred statutory interpretation, because one person’s rate
regulation is another’s lawful regulation of charges, classifications and
practices.
The
Supreme Court has created something called the Chevron Doctrine that creates a
model for assessing whether courts should defer to regulatory agency legislative
interpretation. While agencies like the
FCC must apply the clear meaning of an unambiguous law, court must defer to reasonable
agency interpretations when the applicable law is ambiguous.
On
its face, H.R. 2666 is ambiguous, because one could readily argue that this
bill does not repeal Sections in the Communications Act that authorize the FCC
to investigate complaints about carrier billing and treatment of information
about customer network usage (Sec. 222) as well as issues that affect out of
pocket cost, but can be deemed something other than a rate.
In
the Internet ecosystem, ISPs often negotiate agreements that do not involve
rates and even the exchange of money.
Instead they use customer information as a marketable currency of great
value to advertisers. Data mining
configures and analyses ISP subscriber behavior that can be monetized, but not
converted into applicable rates and tariffs.