Net Neutrality Order Will Hurt Innovation, O'Rielly Says
The FCC’s net neutrality order will “have a negative impact on innovation,” Commissioner Mike O’Rielly told the Association of National Advertisers on Wednesday. The order’s “vague, catch-all” Internet conduct standard will be used to “decide the lawfulness of sponsored data…
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plans,” he said (see 1502250064). “Other attempts by providers to differentiate themselves through innovative partnerships and pricing models may also end up on the chopping block,” he told the group in a wide-ranging speech that also touched on multichannel video programming distributors (MVPDs). The agency has a “desire to edge into Internet privacy and security issues,” O’Rielly said. The FCC also could try to police how broadband and edge providers collect, use, share and store consumers’ information, as well as how those practices are disclosed to consumers, he said. The agency’s NPRM (see 1412190050) could also lead the agency to redefine some over-the-top video programming providers as MVPDs, he said. The agency doesn’t seem to have “any authority to allow an opt-out,” so “if the Commission declares an OTT video provider as an MVPD, it is so. And the limited benefits and many burdens of doing so will be applicable,” O’Rielly said. It’s a “safe bet that there will be significant unintended consequences on an emerging industry still trying to define itself, as it moves forward.” On the Telephone Consumer Protection Act, O’Rielly said the agency should “provide clear rules of the road that will benefit everyone” by acting on pending TCPA petitions to clarify the law. He doesn't support companies “hounding consumers with incessant or harassing calls,” but the litigation risk created by the law, agency decisions and court rulings have forced businesses to “avoid making calls to their existing customers or clients even if the purpose of the call could directly and immediately help the customer,” O’Rielly said. In addition, he said broadband providers’ advertisements “are garnering greater scrutiny and are even being used to justify FCC decisions to increase regulation.” Ads about speed and capacity were used to help justify the reclassification of broadband as Communications Act Title II service, he said. “Unfortunately, I would not be surprised if decisions like these begin to have an impact on how providers market their services,” O’Rielly said.