Court May Have Ushered in Uncertainty on Privacy Rules

[Commentary] A recent court ruling could mean big things for privacy regulations governing telecommunications, cable and internet companies—mostly because it highlights what those regulations may not cover. The Ninth Circuit Court of Appeals ruled that the FTC cannot regulate any aspect of a common carrier’s business. That includes cable companies and other broadband providers, which are classified as common carriers under new net neutrality rules. Meanwhile, the Federal Communications Commission, which regulates common carriers, doesn’t have jurisdiction over non-communications services. As companies with common carrier status expand into new lines of business such as mobile video and online advertising, the decision could be interpreted to mean that some of their business lines are left effectively unregulated when it comes to privacy. And that void could push lawmakers to act. Any gap in the law should worry investors because of the uncertainty over what might fill it.