The US Chamber of Commerce and two business groups from Texas have filed a lawsuit against the Federal Communications Commission (FCC) over its newly implemented rule banning digital discrimination.

The Chamber of Commerce argues that the rule is too broad and will hinder the deployment of broadband service by increasing compliance costs and stifling private sector investment. The lawsuit claims the rule is arbitrary, capricious, and abused discretion beyond the Commission's statutory authority. Various industry groups had expressed concerns about the FCC's decision to ban 'digital discrimination of access,' suggesting that a narrow interpretation focusing on intentional discrimination would be appropriate.

In addition to the lawsuit, House Republicans also introduced a joint resolution of disapproval seeking to overturn the FCC's rule. The resolution has the support of industry groups and argues that the rule exceeds the FCC's legal authority and will discourage investment and innovation.

However, consumer advocacy groups, such as the National Digital Inclusion Alliance (NDIA), support the rule as necessary to address and prevent discriminatory practices in internet access.

Why does it matter?

The FCC's rule is set to take effect in March, pending any successful efforts to stop it. The Los Angeles City Council has already passed its own resolution to ban digital redlining, complementing the FCC's rule.