More states could act after internet service providers lose latest California net neutrality challenge

The US Ninth Circuit Court of Appeals dealt internet service providers (ISP) groups a blow, as a three-judge panel upheld the state of California’s right to implement its own net neutrality rules. Analysts at New Street Research tipped the decision to prompt more state action on the issue; Blair Levin of New Street Research argued the ruling opens the door for states with similar views on net neutrality to pass their own regulations. While some states might continue to follow the Federal Communications Commission's lead, "other states might act on the theory that more state action puts pressure on the industry to accept an FCC reclassification,” he wrote. “Thus, we think that in the short-term, ISPs may be subject to multiple legal frameworks on net neutrality related issues.” However, Levin noted the FCC, which is now led by net neutrality proponent Jessica Rosenworcel, is likely to act on the issue as soon as a fifth commissioner is installed to give the chairwoman’s political party a 3-2 voting majority.