In a closely watched legal battle over broadband regulation, New York has emerged victorious, securing a landmark win that strengthens states’ authority to safeguard consumer interests in the digital age. A federal appeals court has overturned a previous ruling, paving the way for the enforcement of New York’s Affordable Broadband Act (ABA), which requires Internet Service Providers (ISPs) to offer affordable broadband plans to low-income consumers.
The debate over broadband regulation has been longstanding, with ISPs and trade groups fiercely opposing state-level interventions, citing federal preemption. The ruling comes amidst a nationwide push to bridge the digital divide and ensure equitable access to high-speed internet, a necessity in today’s connected world.
In a 2-1 decision, the US Court of Appeals for the 2nd Circuit reversed a previous ruling that had blocked the enforcement of New York’s ABA. The law mandates ISPs to provide broadband plans at no more than $15 per month for 25Mbps service or $20 per month for 200Mbps high-speed service to eligible low-income consumers. “If they believe a requirement to provide Internet to low-income families at a reduced price is unfair or misguided, they have several pathways available to them,” the appeals court judges stated, addressing the concerns of ISP trade groups. “They could take it up with the New York State Legislature. They could ask Congress to change the scope of the FCC’s Title I authority under the Communications Act. They could ask the FCC to revisit its classification decision, as it has done several times before. But they cannot ask this Court to distort well-established principles of administrative law and federalism to strike down a state law they do not like.”
“Today’s decision means that if a future FCC again decided to abdicate its oversight over broadband like it did in 2017, the states have strong legal precedent, across circuits, to institute their own protections or re-activate dormant ones,”
The ABA’s exemptions for smaller ISPs with fewer than 20,000 customers aim to strike a balance between consumer protection and industry sustainability. “Today’s decision means that if a future FCC again decided to abdicate its oversight over broadband like it did in 2017, the states have strong legal precedent, across circuits, to institute their own protections or re-activate dormant ones,” said Stanford Law Professor Barbara van Schewick, highlighting the ruling’s broader implications. Andrew Jay Schwartzman, senior counselor for the Benton Institute for Broadband & Society, added, “This decision provides a roadmap for other states to follow to join New York in doing what the federal government has thus far failed to do.”
The ruling sets a precedent that could embolden other states to enact similar consumer-friendly broadband regulations, potentially reshaping the landscape of broadband accessibility and affordability nationwide. However, ISP trade groups have expressed disappointment and may seek further legal recourse, potentially escalating the case to the Supreme Court.
In a era where high-speed internet access is increasingly vital for education, work, and everyday life, New York’s victory represents a significant step towards empowering states to ensure digital equity and protect consumer rights in the ever-evolving broadband market. As the battlelines are redrawn, the implications of this ruling will undoubtedly reverberate across the nation, shaping the future of broadband regulation and access for years to come.
