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Net Neutrality is Officially Dead. Now What?

The Federal Communications Commission’s repeal of net neutrality rules officially took effect today (Monday June 11, 2018).

The net Neutrality rules were enacted by the administration of President Barack Obama in 2015. These rules prohibited internet providers from charging more for certain content or from giving preferential treatment to certain websites.

After the commission voted to repeal the rules in December, it faced a public outcry, legal challenges from state attorneys general and public interest groups, and a push by Democratic lawmakers to overturn the decision. The opponents argued that the repeal would open the door for service providers to censor content online or charge additional fees for better service — something that could hurt small companies — and several states have taken steps to impose the rules on a local level.

Still, the repeal was a big win for Ajit Pai, the F.C.C.’s chairman, who has long opposed the regulations, saying they impeded innovation. He once said they were based on “hypothetical harms and hysterical prophecies of doom.”

In an op-ed column published on CNET Monday, Mr. Pai argued that the repeal was good for consumers because it restored the Federal Trade Commission’s authority over internet service providers.

“In 2015, the F.C.C. stripped the F.T.C. — the nation’s premier consumer protection agency — of its authority over internet service providers. This was a loss for consumers and a mistake we have reversed,” Mr. Pai wrote.

These are the rules that were repealed
The original rules laid out a regulatory plan that addressed a rapidly changing internet. Under those regulations, broadband service was considered a utility under Title II of the Communications Act, giving the F.C.C. broad power over internet providers. The rules prohibited these practices:

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BLOCKING Internet service providers could not discriminate against any lawful content by blocking websites or apps.

THROTTLING Service providers could not slow the transmission of data because of the nature of the content, as long as it was legal.

PAID PRIORITIZATION Service providers could not create an internet fast lane for companies and consumers who paid premiums, and a slow lane for those who didn’t.

What’s everyone worried about?
Many consumer advocates argued that once the rules were scrapped, broadband providers would begin selling the internet in bundles, not unlike cable television packages. Want access to Facebook and Twitter? Under a bundling system, getting on those sites could require paying for a premium social media package.

Another major concern is that consumers could suffer from pay-to-play deals. Without rules prohibiting paid prioritization, a fast lane could be occupied by big internet and media companies, as well as affluent households, while everyone else would be left on the slow lane.

Some small-business owners are worried, too, that industry giants could pay to get an edge and leave them on an unfair playing field.

E-commerce start-ups have feared that they could end up on the losing end of paid prioritization, with their websites and services loading more slowly than those run by internet behemoths. Remote workers of all kinds, including freelancers and franchisees in the so-called gig economy, could similarly face higher costs to do their jobs from home.

“Internet service providers now have the power to block websites, throttle services and censor online content,” Jessica Rosenworcel, a Democratic member of the commission who voted against the repeal, said in an emailed statement Monday. “They will have the right to discriminate and favor the internet traffic of those companies with whom they have pay-for-play arrangements and the right to consign all others to a slow and bumpy road.”

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