With lawsuits coming and protests occurring outside the FCC meeting where net neutrality rules were changed, advocates for keeping the status quo said they will press on. And those for and against the regulatory rollback reacted in droves, with dozens of statements issued shortly after the 3-2 party-line vote. Free Press Senior Counsel Jessica Gonzalez said her group will sue the FCC. President Craig Aaron told us he anticipated lawsuits by a variety of other groups. And the FCC's chief technology officer had raised concerns, which he said have been addressed.
The $66.1 billion acquisition of much of 21st Century Fox (see 1712140003) would let Disney “greatly accelerate our direct-to-consumer strategy,” and is one of the “most exciting aspects,” Disney CEO Bob Iger told investors Thursday. “Creating a direct-to-consumer relationship is vital to the future of our media businesses, and it’s our highest priority.” Iger repeated what he said in August when Disney upped its stake in BAMTech to 75 percent and announced it would pull its films from Netflix in 2019 (see 1708080065). The American Cable Association and groups generally opposing consolidation have concerns, with experts split on regulatory prospects (see 1712130010).
Federal lawmakers and state governments promised action Thursday to counteract the FCC 3-2 vote to roll back its 2015 net neutrality rules. State Democratic attorneys general announced plans to sue as expected (see 1712130051), and other officials said they will protect consumers within their states if the FCC won’t. Sen. Ed Markey, D-Mass., and House Communications Subcommittee ranking member Mike Doyle, D-Pa., gained support for respective plans to file Congressional Review Act resolutions of disapproval to undo the FCC's repeal (see 1712110050 and 1712120037). The FCC's action drew impassioned statements from lawmakers in both parties, with Republicans largely in support and Democrats uniformly in opposition.
The FCC approved an NPRM seeking comment on possible relaxation or elimination of the national cap on TV station ownership on a 3-2 party-line vote, as expected (see 1712060051). Though Commissioner Mike O’Rielly voted with the other Republicans to approve, he said he agreed with the Democrats the FCC doesn’t have authority to alter the cap. Despite that, if the FCC acts to modify the cap after the NPRM, O’Rielly said he will “happily support” Thursday's action: “That is not to suggest my position has changed, but only that I believe in getting to finality and am willing to cast a vote that will allow the commission to take the needed step to get this to court review.”
The FCC voted 3-2 to undo Title II net neutrality regulation under the Communications Act at a Thursday meeting, as expected. The ruling and orders approved by commissioners along party lines will return broadband classification to a Title I framework and eliminate 2015 regulation. The item as described by a release and officials' statements appears substantively the same as a draft. Tweaks narrowed the legal basis of a transparency rule and bolstered pre-emption of state broadband regulation.
It's "very clear" Europe has a long-term commitment to net neutrality even as the U.S. prepares to potentially reverse course, said Body of European Regulators for Electronic Communications (BEREC) Chairman Sébastien Soriano Wednesday. On a webcast debriefing of BEREC's Dec. 7-8 plenary meeting, he said one key difference between the U.S. and EU is that institutional setups differ. The U.S. position on net neutrality can change every two years because it's in the hands of a regulator, while in Europe it's set by policymakers, he said. Reopening the discussion about withdrawing the rules "would be totally absurd," said Soriano, who heads French telecom regulator ARCEP (Autorité de régulation des communications électroniques et des postes).
It’s unclear whether consumers are at risk in an era of increasing market concentration, experts told a Senate Judiciary Antitrust Subcommittee hearing Wednesday. “The real question is whether concentration has led to a decline in competition,” said Chairman Mike Lee, R-Utah. “Higher output almost always translates to a better experience for consumers.” That’s not what ranking member Amy Klobuchar, D-Minn., said she's hearing from constituents: “Everyday citizens have started coming up to me about antitrust issues, with some wondering whether our antitrust laws are being underenforced.”
Capitol Hill lawmakers delivered their final arguments Wednesday on the FCC's planned Thursday vote to rescind 2015 net neutrality rules. House Commerce Committee Chairman Greg Walden, R-Ore., and House Communications Subcommittee Chairman Marsha Blackburn, R-Tenn., led a letter from more than 100 House Republicans urging the FCC to move forward. “This proposal is a major step forward in the effort to clear the way for the substantial investment necessary to advance our Internet architecture for the next generation and close the digital divide,” they said. “When its effects are fully realized, more Americans than ever will experience the benefits of telemedicine, distance learning, streaming video, and future innovations made possible by broadband.”
Whether DOJ would approve a Disney buy of nonbroadcast Fox assets is unsettled among mergers and acquisitions and other experts we talked to. A key question before regulators will be how to define what New Disney is -- a major player in sports content and movie production, or a much smaller content producer in the growing streaming landscape, they said. Disney and Fox reportedly plan to announce a deal as soon as this week. They didn't comment.
Industry officials expect a unanimous FCC vote Thursday to approve a draft item that would create a new emergency alert system code for law enforcement officers in danger, but they left open the possibility one of the agency’s Democrats could vote against it. Those inside and outside the FCC told us the relatively noncontroversial Blue Alert item isn’t their main focus at a commissioners' meeting that also will feature votes on net neutrality (see 1712130053) and the national broadcast coverage ownership cap (see 1712060051). The draft order hasn’t been the target of many suggested edits and has changed little since being released, an FCC official said.