That is right, the corporations who had a violent uprising over a tea tax want to prevent a federal regulation, which means they have to offer a service to those who cannot otherwise afford what most civilised countries see as a utility.
Six trade groups representing the cable, telecom, mobile, and satellite industries filed a Supreme Court petition challenging the state law. Although ISPs were recently able to block the FCC's net neutrality rules, this week's petition shows the firms are worried about states stepping into the regulatory vacuum with various kinds of laws targeting broadband prices and practices.
A broadband industry victory over federal regulation could bolster New York's and other states' authority to regulate broadband. To prevent that, ISPs said the Supreme Court should strike down both the New York law and the FCC's broadband regulation, although the rulings would have to be made in two different cases.
A situation in which the New York law is upheld while federal rules are struck down "will likely lead to more rate regulation absent the Court's intervention," ISPs told the Supreme Court.
"Other States are likely to copy New York once the Attorney General begins enforcing the ABA [Affordable Broadband Act] and New York consumers can buy broadband at below-market rates.
New York's price cap will require them to sell broadband at a loss which they claim will deter them from investing in expanding their broadband networks. Of course, it probably won’t as the numbers of people who would be illegible for such an account will be small. However, it is likely that these companies will see their profits take a hit, and any bonuses.
As rate regulation proliferates, those harms will also stifle critical investment in bringing broadband to unserved and underserved areas."
The US Court of Appeals for the 2nd Circuit upheld the New York law in April, which reversed a 2021 District Court ruling. Last week, New York Attorney General Letitia James agreed not to enforce the $15 broadband law while the Supreme Court considers whether to take up the case.