Big Loss For ISPs as Supreme Court Won't Hear Challenge To $15 Broadband Law

The Supreme Court has rejected the broadband industry's challenge to a New York law that requires Internet providers to offer $15- or $20-per-month service to people with low incomes. From a report: In August, six trade groups representing the cable, telecom, mobile, and satellite industries filed a petition asking the Supreme Court to overturn an appeals court ruling that upheld the state law. But the Supreme Court won't take up the case. The Supreme Court denied the telecom groups' petition without comment in a list of orders released yesterday.

Although a US District Court judge blocked the law in 2021, that judge's ruling was reversed by the US Court of Appeals for the 2nd Circuit in April 2024. The Supreme Court's denial of the industry petition leaves the 2nd Circuit ruling in place. The appeals court ruling is an important one for the broader question of how states can regulate broadband providers when the Federal Communications Commission isn't doing so. Trade groups claimed the state law is preempted by former FCC Chairman Ajit Pai's repeal of net neutrality rules, which ended Title II common-carrier regulation of ISPs.

In a 2-1 opinion, a panel of 2nd Circuit appeals court judges said the Pai-era FCC 'order stripped the agency of its authority to regulate the rates charged for broadband Internet, and a federal agency cannot exclude states from regulating in an area where the agency itself lacks regulatory authority.'

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