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PRESS RELEASE February 26, 2015
Contact: Randolph J. May at 202-285-9926 or 301-984-8253
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Title II Utility Regulation for the Internet: Most Misguided FCC Decision in 40 Years
ROCKVILLE, MD - February 26, 2015
Randolph May, President of the Free State Foundation, issued the following statement in response to the FCC's action today classifying Internet Service Providers as public utilities:
"In the nearly forty years that I have been heavily involved in communications law and policy, including serving for a time as FCC Associate General Counsel, this is certainly one of the most momentous decisions of the agency - and, undoubtedly, one of the most misguided ones.
Despite any protestations to the contrary uttered today by the Commission's three Democrats, today's FCC's action will lead to government regulation of the Internet in a way that is simply not warranted. There is no evidence of present market failure or consumer harm justifying this government intervention in the marketplace for Internet services.
Contrary to claims made by the FCC's majority, its action will lead to a curtailment of investment and a reduction in innovation as Internet providers face administrative and legal uncertainty as to what services and innovations will now be permitted. There will be rate regulation of Internet services, albeit the FCC will speak instead of regulating 'practices.'
And, rest assured, pleading for special treatment in the form of waivers and other administrative dispensations will rise to new heights at the Commission as companies seek to advantage themselves and handicap their rivals under the new rules. This will lead to further ongoing uncertainty under the regulations by which the FCC accords itself broad discretion untethered by any law of Congress. As I explained in my op-ed, "Is the FCC Lawless?" in yesterday's The Hill, the forthcoming flood of pleas for exemptions from the new regulations will smack of a resurrection of the discredited 'dispensing power' exercised by the Kings of England through the royal prerogative."
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In addition, for further reading, please see these Perspectives from FSF Scholars from members of the Free State Foundation's esteemed Board of Academic Advisors published in the last two weeks. Each one addressed the Commission's actions today.
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Randolph J. May, President of the Free State Foundation, is a former FCC Associate General Counsel and a former Chairman of the American Bar Association's Section of Administrative Law and Regulatory Practice. Mr. May is a public member of the Administrative Conference of the United States, and a Fellow at the National Academy of Public Administration.
Mr. May is a nationally recognized expert in communications law, Internet law and policy, and administrative law and regulatory practice. He is the author of more than 150 scholarly articles and essays on communications law and policy, administrative law, and constitutional law. Most recently, Mr. May is the editor of the new book, Communications Law and Policy in the Digital Age: The Next Five Years. He is the author of A Call for a Radical New Communications Policy: Proposals for Free Market Reform. And he is the editor of the book, New Directions in Communications Policy and co-editor of other two books on communications law and policy: Net Neutrality or Net Neutering: Should Broadband Internet Services Be Regulated? and Communications Deregulation and FCC Reform.
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The Free State Foundation
P. O. Box 60680
Potomac, MD 20859
Tel: 301-984-8253
Fax: 301-299-5007
www.freestatefoundation.org
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