Network Neutrality Bill Gives FCC No New Rulemaking Power

House Commerce Chairman Henry Waxman has drafted a bill on network neutrality which does not give the Federal Communications Commission rulemaking authority on the matter.

Instead, the FCC would deal with enforcement on a case-by-case basis. Broadband providers who violate the law will face a maximum penalty of $2. Under the proposed legislation, the FCC would be prohibited from reclassifying broadband under Title II of the Communications Act, a change FCC Chairman Julius Genachowski has proposed in order to allow the government to impose rules designed to preserve the Internet's openness. The bill would stipulate that wireline providers may not block lawful Internet traffic and or "unjustly or unreasonably discriminate in transmitting lawful traffic over a consumer's wireline broadband Internet access service." Notably, the nondiscrimination language does not apply to wireless providers. The legislation would prohibit wireless providers from blocking lawful websites, but leaves open their ability to block applications and peer-to-peer activity.

The draft bill also sets a Dec. 31, 2011 deadline for the FCC to deliver to the House and Senate commerce committees a report regarding additional authority needed by the commission to implement its national broadband plan and ensure the further protection of consumers with respect to their Internet use.

The draft includes a sunset provision calling for the enacted measure to expire at the end of the 2012 calendar year. All of the rules regarding Internet traffic are subject to "reasonable network management," the draft bill says.