“Net neutrality” regulations, designed to prevent internet service providers like Verizon, AT&T, Comcast and Charter from favoring some sites and apps over others, were on the chopping block Thursday. The Federal Communications Commission voted to undo the Obama-era rules that have been in place since 2015, and it forbid states from putting anything similar in place.
Here’s a look at what the developments mean for consumers and companies.
Q: What is net neutrality?
A: Net neutrality is the principle that internet providers treat all web traffic equally, and it’s pretty much how the internet has worked since its creation. But regulators, consumer advocates and internet companies were concerned about what broadband companies could do with their power as the pathway to the internet — blocking or slowing down apps that rival their own services, for example.
Q: What did the government do about it?
A: The FCC in 2015 approved rules, on a party-line vote, that made sure cable and phone companies don’t manipulate traffic. With the rules in place, a provider such as Comcast can’t charge Netflix for a faster path to its customers, or block it or slow it down.
The net neutrality rules gave the FCC power to go after companies for business practices that weren’t explicitly banned as well. For example, the Obama FCC said that “zero rating” practices by AT&T violated net neutrality.
The telecom giant exempted its own video app from cellphone data caps, which would save some consumers money, and said video rivals could pay for the same treatment. Under current Chairman Ajit Pai, the FCC spiked the effort to go after AT&T, even before it began rolling out a plan to undo the net neutrality rules entirely.
A federal appeals court upheld the rules in 2016 after broadband providers sued.
Q: What do companies want?
A: Big telecom companies hate the stricter regulation that comes with the net neutrality rules and have fought them fiercely in court. They say the regulations can undermine investment in broadband and introduced uncertainty about what were acceptable business practices. There were concerns about potential price regulation, even though the FCC had said it won’t set prices for consumer internet service.
Q: What does Silicon Valley want?
A: Internet companies such as Google have strongly backed net neutrality, but many tech firms have been more muted in their activism this year. Netflix, which had been vocal in support of the rules in 2015, said in January that weaker net neutrality wouldn’t hurt it because it’s now too popular with users for broadband providers to interfere.
Q: What happens next?
A: The push to eliminate net neutrality has stirred fears among consumer advocates, Democrats, many web companies and ordinary Americans afraid that the cable and phone giants will be able to control what people see and do online. But the broadband industry has promised that the internet experience for the public isn’t going to change.
In the long run, net-neutrality advocates say undoing these rules makes it harder for the government to crack down on internet providers who act against consumer interests and will harm innovation.
The FCC vote is unlikely to be the last word. Net neutrality supporters threatened legal challenges, with New York’s attorney general vowing to lead a multistate lawsuit. Some Democrats want to overturn the FCC action in Congress, and many think it might be a winning political issue for the Democrats in 2018 congressional elections.