FCC delivers net-neutrality rules to OMB

By Gautham Nagesh - 07/07/11 06:50 PM ET

The Federal Communications Commission delivered its net-neutrality rules to the Office of Management and Budget on Thursday, paving the way for the controversial regulations to become official pending OMB's approval.

The FCC published its estimate of the paperwork burden stemming from the rule in Thursday's Federal Register, triggering a 30-day comment period. Once that has run its course, and assuming OMB approves the rules, they will be published in the Federal Register and take effect 60 days later.

The rules prevent traditional Internet service providers from discriminating between two similar content providers by slowing down or speeding up access to their sites. Wireless carriers are banned from blocking lawful websites or applications that compete with their services.

The commission approved the rules last December in a partisan vote, fulfilling a key campaign pledge from President Obama. Republicans were quick to characterize the move as the FCC's attempt to regulate the Internet. Supporters argue without such rules, ISPs will dictate what content reaches users.

House Republicans voted to repeal the rules earlier this year but that attempt was doomed thanks to opposition from Senate Democrats and the White House. The leadership of the House Energy and Commerce Committee reiterated Thursday that the rules are a burden on industry and innovation.

“More than six months after it adopted an order to regulate the Internet, the FCC has finally submitted the rules to the Office of Management and Budget, which must still review and approve the submission," said Energy and Commerce chairman Fred Upton (R-Mich.) and Telecom subpanel Chairman Greg Walden (R-Ore.) in a statement.

"The FCC’s estimate of the paperwork burden has already tripled. One has to wonder whether the FCC will also finally admit it has grossly underestimated the burden on innovation, investment, and jobs," the lawmakers added.

Verizon has already attempted to challenge the net-neutrality regulations in court only to have their case dismissed as premature. Stakeholders expect a host of legal challenges to the rules, which some argue won't stand up to challenges the FCC has exceeded its authority under the Communications Act.