Bloomberg News

Verizon Sues U.S. to Block Internet Rules Set for November

September 30, 2011

(Updates with Verizon statement in third paragraph.)

Sept. 30 (Bloomberg) -- Verizon Communications Inc. sued to overturn the Federal Communication Commission’s open-Internet rules set to take effect Nov. 20, saying the agency lacks authority to regulate how companies provide Internet service.

The so-called net-neutrality rules, adopted in December, would prevent Internet service providers from blocking or slowing the flow of Web content to homes and businesses. It’s the second time New York-based Verizon asked the U.S. Court of Appeals in Washington to overturn the rules. The court dismissed the first suit April 4, ruling the challenge was premature.

“We are deeply concerned by the FCC’s assertion of broad authority to impose potentially sweeping and unneeded regulations on broadband networks and services and on the Internet itself,” Michael E. Glover, senior vice president and deputy general counsel, said in a statement.

The scope of the rules doesn’t follow the law and will “create uncertainty for the communications industry, innovators, investors and consumers,” Glover said.

Neil Derek Grace, a spokesman for the FCC, said by e-mail that the agency will oppose any effort to disrupt the “certainty” created by the rule which, he said, “ensures that the Internet remains an engine for job creation, innovation and economic growth.”

The case is Verizon v. Federal Communications Commission, 11-1356, U.S. Court of Appeals for the District of Columbia (Washington).

--With assistance from Todd Shields and Juliann Francis in Washington. Editors: Fred Strasser, Mary Romano

To contact the reporter on this story: Tom Schoenberg in Washington at tschoenberg@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus