A case before the U.S. Supreme Court, Consumers' Research, et al. v. Consumer Product Safety Commission, potentially has major implications for the FCC and FTC, and could permit a president to fire a commissioner at will, industry lawyers said. The U.S. Chamber of Commerce and other conservative groups are asking SCOTUS in amicus filings to grant the writ of certiorari from Consumers' Research.
The 5th U.S. Circuit Court of Appeals' ruling Wednesday against the FCC's Universal Service Fund contribution factor for the first quarter of 2022 will likely have little to no immediate impact on the commission's USF-funded programs and providers contributing to the fund, trade groups and legal experts told us (see 2407240043). It's uncertain how the U.S. Supreme Court would interpret conflicting rulings of the 5th, 6th and 11th circuits. Consumers' Research asked SCOTUS in a supplemental brief filed Thursday (docket 23-456) to grant rehearing as a result of the circuit split.
The Media and Democracy Project submitted a petition with 25,532 signatures calling for an FCC hearing on whether Fox News' conduct during the 2020 election violated the agency's requirements for broadcast licensees. The item was filed on the one-year anniversary of MAD’s original filing challenging the license renewal of Fox-owned station WTXF-TV Philadelphia and includes signatories from all 50 states, the District of Columbia and Puerto Rico, MAD said. The FCC has not acted on MAD’s petition to deny. “These thousands of signees want satisfaction for the discord Fox has sown, alienating friend from friend and family member from family member over contrivances it pushed to preserve ratings and profits,” the filing said. “While FOX has peppered this proceeding with politicians and sports teams, we have dedicated our efforts to educating everyday Americans about the FCC’s role in determining whether FOX's leadership meets the character expected of a broadcast licensee,” MAD Executive Director Milo Vassalo said. A New York Times article Tuesday reported that Fox Chairman Rupert Murdoch is involved in a court battle with several of his children over changes to the family trust and ownership of Fox. Former Fox and Disney executive Preston Padden, who supports MAD’s petition, said the FCC would have to act if control of Fox is transferred from Rupert Murdoch to one of his sons. Benton Institute for Broadband & Society Senior Counselor Andrew Schwartzman said that while the agency normally resolves license challenges before a transfer of control is complete, it could simply deny the MAD petition or refuse action on the transfer. Fox didn’t comment.
The 5th U.S. Circuit Court of Appeals in a 9-7 decision sided with Consumers' Research following an en banc rehearing of the group's challenge of the FCC's Universal Service Fund contribution methodology. Calling the contribution factor a "misbegotten tax," the court in a Wednesday ruling in docket 22-60008 held that as a "practical matter," the Universal Service Administrative Co. "sets the USF tax" that's "subject only to FCC's rubber stamp" (see 2406180055). In a statement, Chairwoman Jessica Rosenworcel said the agency will "pursue all available avenues for review."
Expect a Donald Trump White House and FCC to focus on deregulation and undoing the agency's net neutrality and digital discrimination rules, telecom policy experts and FCC watchers tell us. Brendan Carr, one of the two GOP minority commissioners, remains the seeming front-runner to head the agency if Trump wins the White House in November (see 2407120002). Despite repeated comments from Trump as a candidate and president calling for FCC action against companies such as CNN and MSNBC over their news content, many FCC watchers on both sides of the aisle told us they don’t expect the agency to actually act against cable networks or broadcast licenses under a second Trump administration.
The U.S. Supreme Court’s conservative majority surprised no one Friday, issuing a decision decided on ideological lines that overrules the Chevron doctrine. Chevron gave agencies like the FCC and FTC deference in interpreting laws that Congress approved. On the penultimate day of its term, the court released a decision that wraps together Loper Bright Enterprises v. Raimondo and Relentless v. Commerce. Both cases concern fishing regulations but were used as a vehicle for overturning Chevron.
Public interest, consumer groups and two providers called on the FCC Tuesday to launch a proceeding that examines “uniform, industrywide” handset unlocking requirements. Industry officials said they expect Chairwoman Jessica Rosenworcel to circulate a notice this week examining the issue for a vote at the July 18 commission meeting. The Open Technology Institute at New America, Consumer Reports, Public Knowledge and the Benton Institute for Broadband & Society, as well as Verizon and EchoStar, parent of Dish Wireless, signed the joint letter.
Federal law doesn't preempt New York state’s Affordable Broadband Act (ABA), the 2nd U.S. Circuit Court of Appeals decided Friday. In a 2-1 opinion, the court reversed the U.S. District Court for Eastern New York, which had barred the state from enforcing the 2021 Affordable Broadband Act (ABA). The ABA required $15 monthly plans providing 25 Mbps download and 3 Mbps upload speeds for qualifying low-income households.
Federal law doesn't preempt New York state’s Affordable Broadband Act (ABA), the 2nd U.S. Circuit Court of Appeals decided Friday. In a 2-1 opinion, the court reversed the U.S. District Court for Eastern New York, which had barred the state from enforcing the 2021 Affordable Broadband Act (ABA). The ABA required $15 monthly plans providing 25 Mbps download and 3 Mbps upload speeds for qualifying low-income households.
Most industry groups opposed the FCC's decision restoring net neutrality rules and reclassifying broadband internet access service (BIAS) as a Communications Act Title II service Thursday. Most disagreed with Chairwoman Jessica Rosenworcel on the order's legal standing, warning it could likely be overturned if a challenge is brought (see 2404250004). The Wireless ISP Association will "carefully review" the order and "determine what legal recourse we should take," Vice President-Policy Louis Peraertz said. Several consumer advocacy groups praised the order.