Issues & Insights

House GOP Is Right To Try To Eliminate FCC’S Counterproductive Digital Discrimination Rule

House Republicans are pushing back against the Federal Communications Commission’s digital discrimination overreach with a Congressional Review Act (CRA) aimed at overturning the rule. While the rule sounds like a step in the right direction, it could do more harm than good in closing the digital divide.

GOP Reps. Earl “Buddy” Carter and Andrew Clyde of Georgia led 65 House Republican members in introducing the CRA in an attempt to eliminate the rule. The regulation pertaining to broadband services was finalized by the FCC in November in a 3-2 party-line vote.

The 2021 Infrastructure Investment and Jobs Act gave the FCC to authority to consider digital discrimination rules based on such factors as income level, race, ethnicity, religion or national origin. Even though the FCC spent two years investigating the broadband marketplace, finding little to no evidence of intentional discrimination that harmed consumers, they decided to establish the rule.

The rule uses the strict disparate treatment standard, which holds providers accountable for unintentional actions that ultimately lead to discrimination. When comments were submitted to the FCC prior to the vote, groups like the Taxpayers Protection Alliance (TPA) raised concerns about the possibility of far-reaching consequences of this rule.

The plan is a slippery slope that could unfairly place blame on providers for digital divides, pointing out that a provider could be called to task under the disparate impact standard for not serving a rural area with a mostly nonwhite population. This would be despite the fact that other rural areas with majority white populations are also unserved due to the economics of serving low-population areas.

Critics also argue that the rule goes beyond addressing discriminatory intent and gives the FCC unchecked power to implement regulations over much of the broadband industry under the concept of helping protected groups.

Rep. Clyde criticized the FCC’s decision in a press release announcing the CRA.

“Under the guise of ‘equity,’ the Biden administration is attempting to radically expand the federal government’s control of all internet services and infrastructure,” Clyde said. “The FCC’s so-called ‘digital discrimination’ rule hands bureaucrats unmitigated regulatory authority that will undoubtedly impede innovation, burden consumers, and generate censorship concerns. Given the Biden Administration’s long history of weaponizing agencies against the American people, Congress should not let this unconstitutional power grab go unchecked.”

Former FCC commissioner Michael O’Rielly said in a recent op-ed in The Washington Times that the digital discrimination rules mark a new low point in regulatory excess. He pointed out the flaws in the regulatory overreach, noting that lower-income customers choosing a lower-priced broadband option with slower speeds could result in a provider being accused of causing a disparate impact on those customers.

“As a practical matter, this sweeping yet incredibly vague order leaves broadband providers with little clear guidance on what practices might someday be considered ‘discriminatory’ — while opening them up to massive liability if they happen to guess wrong,” O’Rielly wrote.

The digital discrimination rule continues the trend (along with the planned reimplementation of Title II rules) of a Democratic-led FCC constantly searching for a solution to nonexistent problems. Congress should consider abolishing this unnecessary and harmful rule. Such regulations only deter deployment in a time when tens of billions of taxpayer dollars are being spent to close the digital divide.

Johnny Kampis is director of telecom policy for the Taxpayers Protection Alliance

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