United States Department of Justice, Anti-Trust Violation, California 2023

DOJ Files Lawsuit Against California Over Net Neutrality Law

The Justice Department has filed a lawsuit against the state of California, alleging that Senate Bill 822, a net neutrality law signed into effect by Governor Jerry Brown, conflicts with the federal government’s deregulatory approach to the internet.

Attorney General Jeff Sessions issued a statement following the filing of the complaint, saying, ‘Under the Constitution, states do not regulate interstate commerce—the federal government does. Once again the California legislature has enacted an extreme and illegal state law attempting to frustrate federal policy.’

The lawsuit claims that California’s law would impose burdensome regulations on the internet, which would be in direct conflict with the Federal Communications Commission’s (FCC) ‘light-touch framework.’ The FCC has classified broadband internet access as an ‘information service’ exempt from public-utility regulations since 2002.

FCC Chairman Ajit Pai praised the decision to file the lawsuit, saying, ‘The Internet is inherently an interstate information service. As such, only the federal government can set policy in this area.’

Pai also stated that the law would hurt consumers by banning free-data plans, which allow users to stream video, music, and other content without data limits. These plans have proven popular among lower-income Americans, but would be prohibited under California’s law.

The lawsuit seeks to prevent California from enforcing its net neutrality law, which would allow the federal government to maintain its deregulatory approach to the internet. The outcome of the case will have significant implications for the future of net neutrality in the United States.

A Bipartisan History of Internet Regulation

In 1996, a bipartisan Congress decided that the internet should remain ‘unfettered by Federal or State regulation.’ Since 2002, the FCC has classified broadband internet access as an ‘information service’ that is exempt from public-utility regulations. The FCC briefly departed from this classification in a 2015 Order, which imposed restrictions on the freedom of the internet. In 2018, the FCC returned to its prior light-touch framework, ensuring that internet access services are free and guided by a uniform set of federal rules, rather than by a patchwork of state and local regulations.

Related Federal Cases