California’s New Internet Law is Unworkable for Small Businesses and the Modern, Digital Economy
Washington, D.C. – The Small Business & Entrepreneurship Council (SBE Council) voiced strong support for the Department of Justice’s (DOJ’s) action against the state of California’s new “net neutrality” law (Senate Bill 822), which goes far beyond net neutrality and would harm innovation, investment, add costs and complexity for all businesses, and disrupt interstate commerce.
SBE Council president & CEO Karen Kerrigan said: “California’s action is extreme and a clear overreach. The law places a heavy hand on top of the entrepreneurial spirit of the internet.”
SBE Council supports action by Congress to embed core net neutrality protections – no blocking, throttling or unfair discrimination – into federal law. California’s far-reaching action goes way beyond that, requiring, for example, government permission to bring new services to market and prohibiting free data plans. As noted by the DOJ’s brief in its motion for preliminary injunction, California is attempting “to nullify the Federal Government’s regulatory scheme for interstate broadband communications. The Constitution resolves this dispute. Pursuant to the Supremacy Clause and federal statutes, the Federal Communications Commission (“FCC” or “Commission”) sets uniform, national policies governing interstate communications, and contrary state laws—like the one challenged here—are preempted.”