States including New York will attempt their own net neutrality legislation in 2018, testing a provision in the FCC's order that bans states from doing this
Karl Bode / Techdirt :
Context & Ripple Effects
The FCC's repeal order did not just erase the 2015 rules — it included a provision ordering states to scrap their own net neutrality plans, a preemption clause that turns every statehouse into a legal battleground. New York is leading the counterattack on two fronts: a coalition of attorneys general suing the FCC over the repeal itself, and now legislative attempts to rebuild the rules at state level.
First-order effects
- State legislatures including New York's will draft net neutrality bills in 2018 whose immediate purpose is to force a court ruling on whether the FCC can preempt them.
- ISPs operating in multiple states face the prospect of divergent obligations — contract terms with New York and Montana already differ from their national practices after those governors' executive orders.
Second-order effects
- If legislation stalls or gets preempted, expect more governors to follow New York's and Montana's route of binding ISPs through state contracting requirements, converting procurement power into regulatory leverage.
- A patchwork of state rules gives edge companies like Etsy and Vimeo — already challenging the FCC in court alongside 22 states asking an appeals court to reinstate the rules — a stronger argument that only a uniform federal standard or restored Title II rules can avoid fifty compliance regimes.
Third-order effects
- The fight tests how far federal agencies can use preemption clauses to lock in deregulation against state opposition; a state win would establish a template for states re-regulating broadband whenever Washington retreats, while a loss would narrow state authority over interstate communications broadly.
The trend: Broadband regulation is becoming a federalism contest, with states building a parallel net neutrality regime through legislation, lawsuits, and procurement whenever the FCC withdraws.