Small Businesses Support One National Framework for the Internet and Broadband Service: DOJ Action vs. California’s Internet Law Warranted

By at 2 October, 2018, 9:04 am



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.”

“A potential patchwork of state laws such as California’s would be massively harmful to the Internet, digital commerce and innovation. SBE Council applauds the DOJ’s just action and we are confident they will prevail,” added Kerrigan.

Read the Complaint for Declaratory and Injunctive Relief here.

Read SBE Council’s latest SMALL BUSINESS INSIDER brief: Justice Department Correctly Challenges California Overreach on Broadband Regulation

CONTACT:  Karen Kerrigan,

Raymond Keating, Chief Economist:

SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For nearly 25 years SBE Council has worked to successfully implement a range of policy and private sector initiatives to strengthen the ecosystem for startups and small business growth. To learn more, visit SBE Council’s website: Follow on Twitter: @SBECouncil 

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