(credit: FCC)
The Federal Communications Commission has lost in an attempt to preempt state laws that restrict the growth of municipal broadband networks.
The FCC in February 2015 voted to block laws in North Carolina and Tennessee that prevent municipal broadband providers from expanding outside their territories. The FCC, led by Chairman Tom Wheeler, claimed it could preempt the laws because Congress gave the commission authority to promote telecom competition by removing barriers to investment.
But this was a risky legal argument, as the FCC has no specific authority to overturn state laws. Officials in both states appealed the FCC decision, and today a three-judge panel of the US Court of Appeals for the Sixth Circuit ruled in favor of the states (full text).
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Source: Ars Technica – In blow to muni broadband, FCC loses bid to overturn state laws