Stanford Center for Internet and Society

Author: Alex Harris

The DC Circuit upheld a decision of the Federal Communications Commission (“FCC”) prohibiting Verizon from continuing some of the company’s practices in trying to retain customers switching from its phone service to a competitor’s VOIP service. When a customer decided to leave Verizon for a competitor, Verizon would get a notice because it had to transfer the customer’s phone number to the new service. Verizon would then offer the customer incentives to stay, such as discounts and gift cards. The FCC banned the practice and the court upheld the FCC’s decision, reasoning that the FCC’s action survived the weak standard of Chevron deference because the FCC had rationally interpreted the relevant statute.

In the first agency action to apply the principle of “network neutrality” to an Internet service provider, the Federal Communications Commission (“FCC”) ruled on August 20, 2008, that Comcast’s action of selectively blocking peer-to-peer (“P2P”) communications occurring on its network violates the Commission’s Internet Policy Statement. This Statement articulates principles to encourage broadband deployment and preserve and promote the open and interconnected nature of the public Internet. The FCC ordered Comcast to disclose the details of its network management practices within 30 days, submit a plan to bring its practices into compliance with the Internet Policy Statement, and to cease blocking P2P communications. Comcast has appealed the FCC’s Order to the United States Court of Appeals for the D.C. Circuit.

FCC Memorandum Opinion & Order on Broadband Industry Practices