A federal court upheld the FCC's data roaming rules on Tuesday, rejecting a challenge from Verizon to the commission's ability to regulate wireless broadband services. The three-judge panel ruled unanimously (PDF) that the Commission does have the authority to require wireless providers to offer reasonable roaming terms for both voice calls and wireless Internet service to its competitors under Title III of the Communications Act. The FCC expanded its rules last April to cover mobile data in addition to voice calls, prompting Verizon to accuse the commission of overstepping its legal authority.
The FCC's legal victory could foreshadow a similar triumph in Verizon's ongoing legal challenge to the FCC's net neutrality rules, which will take place in the same court. Most observers are taking the court's decision to mean wireless companies will have a hard time proving the FCC overstepped its authority in issuing the rules without reclassifying broadband as a Title II service; the same court threw out the FCC's previous attempt at enforcing net neutrality in 2010. However, Tuesday's decision swings momentum back squarely in favor of the FCC, and preserves hope that the FCC's signature achievement during President Obama's first term will have a lasting impact.
Quotable: “Consumers across the nation will benefit from today’s decision to uphold the FCC’s data roaming rules. These rules ensure that consumers are able to use their mobile devices when they roam outside their own network. Exorbitant roaming charges should not be permitted to restrict consumers’ ability to fully utilize their wireless devices, and I applaud both the FCC’s leadership and the court’s decision. I look forward to continuing to work on ensuring the communications marketplace remains pro-consumer and pro-competition.” — Rep. Edward Markey, D-Mass. Online Sales Tax Left Out of Cliff Talks: Senate Majority Whip Richard Durbin said Tuesday that online sales tax legislation will not be part of any Senate deal to avert the fiscal cliff. The statement from the Illinois Democrat likely kills any chance for passage of his legislation (S 1832) during the lame duck; state lawmakers had been pressing the Senate to provide them some budgetary relief by passing the measure before the year's end. The legislation would allow states to collect sales tax from retailers that don't have a physical presence within their borders. Disagreement remains over how high the exemption should be for small online businesses; the Durbin bill currently sets that level at $500,000. Two similar proposals (HR 3179, HR 2701) are also pending in the House. FTC, FCC Nominees Grilled Over Reclassification, Antitrust: The Senate Commerce Committee held a hearing Tuesday to examine the nominations of Democrat Mignon Clyburn to the FCC for a second term and Republican Joshua Wright to the FTC for the first time. Clyburn refused to comment on whether she would support reclassifying broadband as Title II if the court strikes down the FCC's net neutrality rules again, despite direct questioning from outgoing ranking Republican Kay Bailey Hutchison of Texas. Wright encountered plenty of skepticism in turn from Democrats, who questioned his interest in pursuing action against companies for antitrust and consumer protection violations. Wright has previously argued against the FTC's antitrust probe of Google, and pledge to recuse himself from that matter for two years due to the conflict of interest. President Signs Online Consumer Protection Bill: President Obama signed a bill into law on Tuesday that would extend consumer protections against cross-border spam, fraud, and spyware for another seven years. The bill (HR 6131) would reauthorize the U.S. Safe Web Act of 2006; it was passed by the House on Sept. 11 and the Senate on Nov. 14. Outgoing Rep. Mary Bono Mack, R-Calif., praised Congress for extending the legislation and argued it would protect the nearly 1.5 billion credit cards currently in use in the U.S. State Department Defends U.S. Privacy Protections: Foggy Bottom unveiled a resource page on Tuesday aimed at dispelling myths about privacy and law enforcement access to personal information in the U.S. and European Union. The website argues that reports U.S. authorities regularly seize data from cloud services companies are wrong, and emphasizes that the Patriot Act does not eliminate pre-existing protections against the seizure of electronic data. U.S. web companies are eager to emphasize the security and privacy aspects of their offerings, even as Congress debates whether to require a warrant before law enforcement can access data stored remotely online.