James Grimmelmann has a characteristically brilliant post summarizing the countervailing interpretations of the Communications Act in determining whether Internet service providers (ISPs) should be treated as highly regulated telecommunications services (that can be subject to “net neutrality” regulations) or minimally regulated information services (that can’t). He sums up the saga:
By my reckoning, the FCC has treated broadband Internet as an information service, then a telecommunications service, then an information service again, then a telecommunications service again, and is now poised to treat it as an information service for a third time. At various times, federal appellate courts have held that the Telecommunications Act can be read to treat broadband Internet as a telecommunications service, must be read to treat broadband Internet as an telecommunications service, can be read to treat broadband Internet as an information service, and must be read to treat broadband Internet as an information service.
I can’t (at least before coffee) argue with anything in James’ thorough account of the history (which I subject my telecom students to in full every year because I think it’s so important). But I do want to take up the rhetorical question on which James closes:
Is this any way to run an information superhighway?
My response: maybe so?
I don’t mean to read too much substance into James’ question, but it calls to mind Chief Justice John Roberts’ opinion in Loper Bright, in the portion specifically criticizing the Court’s holding in Brand X that underpins most of the history of interpretive uncertainty that James laments:
By its sheer breadth, Chevron fosters unwarranted instability in the law, leaving those attempting to plan around agency action in an eternal fog of uncertainty.
But the fog of uncertainty constrains behavior. And a dynamic that has long dominated conversations about internet regulation is countervailing fears that one of two of the corners of Jack Balkin’s “triangle” of speech—the government in one, speech platforms in the other—will behave badly, overreaching at the expense of internet users in the third corner. It’s “the FCC dominating internet governance is a straight path to authoritarian censorship” versus “the ISPs dominating internet governance is a straight path to turning the internet back into cable TV.”
As I’ve written, good internet law and policy are all about sailing the narrow strait between the “Scylla of . . . authoritarianism” and the “Charybdis of . . . Lochneri[sm].” And the interpretive pendulum at the heart of the net neutrality debate has largely constrained the FCC and ISPs from breaching Larry Solum and Minn Chung’s “layers principle” too severely in one direction or another.
Specifically, the FCC has scarcely ever tried to apply its most contestable legacy media rules for indecency and carriage to application-layer platforms. And while ISPs have at various points tried to push the envelope with various blocking and throttling incidents and zero-rating regimes, they’ve never approached the level of control over the Internet that AT&T had over the phone network.
Why not? Developing authoritarian regulations and profitable discrimination regimes alike require legal certainty in one direction or another. It’s hard to develop a durable government censorship regime or a durable business model for discriminating among applications and content when you know the legal foundation for doing so is a Presidential election cycle away from potentially crumbling—and that anything extreme you do will be used as evidence by the next administration to reverse the current status quo. To mix metaphors, the interpretive uncertainty of the Communications Act is a sort of Damoclean pendulum, always threatening to swing back to the other side.
Of course, what the Sixth Circuit’s recent decision spiking the Biden-era FCC’s net neutrality rules on Loper Bright grounds will do to the pendulum’s swing is unclear. On the one hand, Loper Bright’s repudiation of Chevron (and the major questions doctrine articulated in West Virginia v. EPA) don’t bode well for the pendulum’s continued swing.
But the Sixth Circuit’s decision, in my view, doesn’t yank the pendulum from the clock: rather than tersely concluding that the net neutrality rules are a violation of the MQD or doing the Loper Bright thing and coming up with a better interpretation than the FCC did, the Sixth Circuit concludes (contrary to the part of Brand X that Loper Bright didn’t complain about) that the statute has a ”plain meaning.” I don’t think Loper Bright plausibly overruled the Brand X holding that the Communications Act is ambiguous; it just suggested that it’s the courts’ job to issue the ultimate determination of what it means. The Sixth Circuit’s bland, cursory opinion doesn’t do this job with any authority or persuasiveness. (And even if the Sixth Circuit were correct that the Communications Act did have a plain meaning, there are strong arguments that it’s the opposite of what the Sixth Circuit concluded—see Justice Scalia’s much more compelling dissent in Brand X and the pre-Brand X 9th Circuit cases that James cites).
Incoming FCC Chair Brendan Carr is almost certainly not going to appeal the Sixth Circuit’s ruling. So unless Congress finally decides to weigh in, it’ll leave the pendulum on the ISPs’ side for at least the next four years and change—maybe long enough for ISPs to come up with creative ideas for misbehavior. But the Sixth Circuit’s opinion is non-authoritative and I don’t think it forecloses a Democratic administration from trying again in four years. So it’ll likely be awhile before the Supreme Court actually has to confront Brand X and explain what the Communications Act really means. And until then, the possibility of a swing back may still leave ISPs in the “fog of uncertainty” (complimentary).