Jacob Brown
A federal appeals court in Manhattan has ruled in favor of New York’s law requiring internet service providers to offer heavily discounted rates to low-income residents. The decision overturns a prior ruling that blocked the policy from taking effect.
Background of the Law:
The law, approved by New York state lawmakers in 2021 as part of the budget, mandates internet companies to provide broadband service to low-income New Yorkers for as low as $15 a month. Failure to comply could result in fines imposed by the state.
Legal Challenge and Reversal:
Telecoms trade groups challenged the law in court, arguing that it would impose significant financial burdens on them and conflict with federal internet service regulations. However, the 2nd U.S. Circuit Court of Appeals reversed a lower court’s ruling that had initially blocked the policy from being implemented.
Following the court’s decision, industry groups expressed disappointment and said they were considering their next legal steps. They raised worries about the potential impact of rate regulation on infrastructure investment and broadband operations.
Supporters’ Perspective:
Supporters of the law argue that it provides essential access to the internet for low-income individuals, recognizing it as a crucial utility in today’s digital age.
