Why Verizon is now in trouble, and what you need to know about the new FCC rule
Verizon Communications Inc. is in the crosshairs of the Federal Communications Commission (FCC) and the Justice Department over whether it violated net neutrality rules.
The telco’s wireless spectrum holdings have been in a state of flux since a court order issued in September 2016 that ended a decades-long practice of allowing internet service providers (ISPs) to block certain websites or charge users extra for faster speeds.
The FCC in December granted the company a temporary restraining order that temporarily halted enforcement of the rules.
But the order was blocked by the U.S. Court of Appeals for the District of Columbia Circuit, which ruled last month that Verizon can’t enforce net neutrality in the nation’s capital because of a lawsuit filed by President Donald Trump’s administration.
The order, which was announced on Tuesday, is the latest step in Verizon’s battle to get back to the table with the FCC.
Verizon is already paying billions of dollars in fines for violating the rules, and the company has said it is willing to settle any pending lawsuits if the FCC allows the company to return to the net neutrality debate.
The company has been in court since April to get the court to block the order, arguing that the rules were put in place to protect consumers and the Internet.
A spokesperson for Verizon told CBS News that the company is considering a number of options and “we will keep you updated on those as they come.”
While it is not clear what Verizon is contemplating, a source close to the telco told CBS that the telcos’ new net neutrality regulations will be in effect from April 2018.
The court did not specifically address whether the FCC should revisit the matter.
In a statement, a Verizon spokesperson said: “We look forward to seeing how the FCC will proceed in the coming weeks and months, as we continue to engage in robust, thoughtful, and transparent regulatory reforms that will help bring our broadband offerings to the 21st century.”
The telcos plan to appeal the court’s decision to the U,S.
Supreme Court, but there are a few other potential options that could be pursued.
The first option is to go to court in the U.,S.
District Court for the Eastern District of Virginia.
The district is where Verizon has its headquarters and where the FCC has jurisdiction over the telcoms’ wireless spectrum.
The other option would be to seek an injunction, which would allow Verizon to block service to the FCC, according to a legal source with knowledge of the telcon’s thinking.
But even if the telcastis case was dismissed, the FCC could still order Verizon to reverse course and allow internet service to resume.