In Re: FCC in the Matter of Safeguarding and Securing the Open Internet

Note to Draft

The United States Court of Appeals for the Sixth Circuit recently issued a stay on the FCC's new regulation that classifies broadband internet providers as common carriers under Title II of the Communications Act of 1934. This decision was based on several critical factors. The court determined that the broadband providers challenging the rule are likely to succeed on the merits, as the FCC's new rule addresses significant net neutrality issues that require explicit congressional authorization. The court noted that the FCC did not meet the stringent standards necessary to impose such comprehensive regulations. Additionally, the broadband providers demonstrated potential for significant and irreparable harm without a stay, including delays in product rollouts, competitive disadvantages in forming interconnection agreements, and substantial, non-recoverable compliance costs.

Furthermore, the court emphasized that the public interest is best served by the correct application of the law, suggesting that the FCC might have overstepped its legal authority with this new regulation. It highlighted the need for clear legislative direction in addressing significant policy issues within the rapidly evolving internet landscape. The case consolidates eight petitions from various circuits, with the Sixth Circuit designated to review the matter. The court has postponed the rule's implementation and set a schedule for oral arguments in the fall, along with a detailed timeline for submitting briefs from both sides.