SBE Council on Court Decision Against FCC

OAKTON, Va., April 6 /PRNewswire-USNewswire/ -- The Small Business & Entrepreneurship Council (SBE Council) praised a unanimous decision today by a three-judge panel in Washington, D.C., finding that the Federal Communication Commission (FCC) lacked the regulatory authority to impose net neutrality regulations.

Karen Kerrigan, SBE Council President and CEO, said: "This is a critical decision for the small business community. It means that the FCC cannot impose costly regulations that would discourage the investment and innovation in broadband networks and technologies that provide so many benefits to the entrepreneurial sector of our economy. Broadband networks have leveled the competitive playing field between large and small firms in many ways. Net neutrality regulation places further advancements in this technology at risk, and would end up destroying jobs and hurting the economy."

This case springs from a 2008 order by the FCC, which was passed by a 3-2 margin among the commissioners, against Comcast's actions to manage BitTorrent's file transfers. The two companies later came to an agreement.

Kerrigan continued: "Net neutrality is all about government regulating how broadband providers manage their businesses and networks. If government is interfering with pricing and management practices, what incentives exist to make the large investments needed to push innovation ahead and expand broadband to everyone? As the court found, however, this vast and dangerous regulatory power was never given to the FCC by Congress."

SBE Council chief economist Raymond J. Keating added: "Not only is this good news on the telecommunications front, but it also sends a message that at least some courts are unwilling to stand idly by as federal regulators and agencies overstep their statutory bounds. It is a blow against the kinds of regulatory overreach that are so much in fashion these days, and that work to the detriment of entrepreneurs, businesses, job creation, investors and our economy."

SBE Council can be contacted at 703-242-5840. The SBE Council is a nonpartisan, nonprofit small business advocacy group that works to protect small business and promote entrepreneurship.

Contact: Karen Kerrigan or Raymond J. Keating 703-242-5840 or email Mabel Vaught at [email protected]

SOURCE Small Business & Entrepreneurship Council