Net Neutrality Repeal: FCC Eliminates Open Internet Rules Over Widespread Opposition

Overview

The FCC repealed net neutrality in December 2017 on a 3-2 party-line vote. The chairman who led the repeal was a former Verizon attorney. The repeal benefited Verizon and other large ISPs. Eighty-three percent of Americans opposed the repeal in polls.

The public comment process generated 22 million comments, millions of which were fake, submitted using stolen identities. The New York attorney general investigated. Nothing changed the outcome.

What Net Neutrality Did

Net neutrality rules required ISPs to treat all internet traffic equally. An ISP that also owns a streaming service could not slow down Netflix to advantage its own product. An ISP could not charge a small website more for the same delivery speeds it gave larger websites.

These rules existed because ISPs control the physical infrastructure through which all internet traffic flows — giving them gatekeeping power over competitors and content.

The Comment Fraud

The FCC's public comment process was designed to collect genuine public input. It received 22 million comments — a record. The New York attorney general investigated and found that millions were submitted using stolen identities, including the names of sitting U.S. senators who had not made comments.

The record number of comments thus recorded a massive fraud. Chairman Pai proceeded with the repeal anyway.

The Investment Argument

Pai's central argument was that net neutrality had suppressed broadband investment and the repeal would increase it. ISP executives had previously told investors that net neutrality rules had not materially affected their investment plans. After the repeal, several ISPs acknowledged they had already factored the rules into long-term capital projections.

The investment argument was not supported by the evidence from the industry it was meant to benefit.