City makes rule favoring Google Fiber, gets sued by cable company

Cox Communications has filed a lawsuit against Tempe (AZ) seeking to invalidate new rules designed to bring Google Fiber to the city. Tempe violated federal law "by establishing a discriminatory regulatory framework" that exempts Google from obligations imposed on similar companies, Cox said in a lawsuit filed in US District Court in Arizona.

Tempe created a new license category for "video services providers," which are to be treated differently from cable operators like Cox, the lawsuit said. Although the Google Fiber network uses fiber optics instead of coaxial cable, pay-TV companies that offer video service over fiber are considered cable TV operators by the Federal Communications Commission. Cox argued that Tempe's licensing scheme will exempt Google from various consumer protections related to service standards, consumer information, and billing.