Update: Appeals of the FCC Net Neutrality Rule
The appeals of the FCC’s Net Neutrality rule continued to run their courses this week. [For background, see Which Court Gets to Hear the Net Neutrality Appeal? (Jan. 21) & More on the Verizon Appeal of the Net Neutrality Regulation (Jan. 24).]
On Jan. 10, even before the rule was published (which still has not happened) the Free Press sent a letter to the FCC protesting that MetroPCS Communications is offering data plans that discriminate among content providers and violate Net Neutrality principles.
Verizon appealed on Jan. 20, near the end of the 30 days allowable under its theory of the case. On Jan. 24 or 25, MetroPCS, possibly alarmed by the Free Press letter, appealed, also in the DC Circuit, and making the same claim as Verizon – that the rule affects licenses, that exclusive jurisdiction on appeal lies in the DC Circuit under 47 USC §402(b). [NB: The MetroPCS appeal is sort of stealth mode; the company’s website contains no reference to it, and its terms must be deduced from the FCC response.]
The FCC filed its responses to both appeals on Jan. 28, asking that they be dismissed for prematurity. However, the agency’s view of which statute applies — §401(a) (appeal to any circuit) or §401(b)(appeal to DC exclusively) is left open. The argument in the brief is that FCC rules governing time of “public notice” control, and that this time is defined as the date of publication in the Federal Register. But this leaves available to Verizon and to MetroPCS the argument that once the Fed Reg publication takes place, two clocks start to run – a 30-day clock under §401(b), with exclusive jurisdiction in DC, for parties with affected licenses, and a 60-day clock under §402(a), with jurisdiction in any circuit, for anyone else.
Verizon and MetroPCS would be perfectly happy with dismissal on the terms requested by the FCC, since they could still argue for exclusive jurisdiction in the DC Circuit. MetroPCS might be particularly happy. By my calendar, the rule became publicly available on Dec. 24, so the 30-day calendar ran out on Jan. 24, and the news reports read as if MetroPCS did not file until the next morning. (Not necessarily, though, since the reporters could have been reacting to a statement made early the day after the filing.) The FCC did not argue this, but then it wouldn’t, given its position that Dec. 24 is irrelevant. But it still could, since jurisdictional requirements are absolute.
The DC Circuit has not acted on the basic appeal, but on Feb. 2 it rejected Verizon’s motion that the case be heard by the same panel that overruled the FCC in Comcast and denied the agency’s power to use “ancillary authority” to impose net neutrality requirements via litigation. This denial was pretty much expected.
So what happens now? Courts encourage agencies to define precisely when the clock on time-for-appeal starts, so the uncertainties that triggered the timing of the Verizon and MetroPCS filings are undesirable anomalies. The proper course is for the DC Circuit to agree with the FCC and dismiss the appeals as premature, but this will settle none of the fundamental issues.
The next step is for the FCC to publish the rule in the Fed Reg. As noted above, this will then start two clocks running, under §401(b) and §401(a). It will also start a third clock for the judicial lottery. As described in Which Court Gets to Hear the Net Neutrality Appeal? (Jan. 21), when appeals from a rule are filed in more than one circuit, those that are filed within 10 days go in the equivalent of a judicial hat and the case is assigned randomly.
So the situation will be that Verizon/MetroPCS will immediately file in the DC Circuit under §401(b). Others will file in circuits of their choice. Verizon and MetroPCS will probably also file under §401(a), just to be sure that the DC Circuit is in the hat, should that be relevant. All of these appeals will be filed within 10 days, so the difference between the 30- and 60-day clocks will become irrelevant, except, that anyone who files within these time limits will be allowed to participate in the appeal; the delay simply means that their favored circuit does not get to be in the hat.
At that point, the question will be whether the DC Circuit decides the §401(b) issue first or the lottery is held under §401(a), with the winning court then deciding the §401(b) issue. Or is it an issue for the Judicial Panel on Multidistrict Litigation, despite the fact that the terms of the statute governing multiple appeals do not quite fit? And even if §401(b) applies, should the appeals from other parties under §402(a) be transferred to DC, or is it possible to have multiple appeals going on, with the 401(b) litigation circumscribed to licensing issues?
The FCC has some control over the issue in that it can pick a court in which to file the record, and force other parties to react to this, but it is not entirely clear just how broad this power is.
There may also be some case law on all this somewhere, and a lot of lawyers are being paid a lot of money to look for it, but for the rest of us all of this procedural litigation is an annoyance because it prolongs uncertainty. On the other hand, I sympathize with Verizon’s determination to have it heard in DC, not because of the Comcast case, but because telecom/FCC law is hideously complicated, and the DC judges hear so much of that they have a running start. In other circuits, it could be like putting a rookie quarterback into the Superbowl.
I am so happy I could clear all this up for you. It is not absolutely necessary to be sort of an idiot savant to be an administrative lawyer, but it helps.
Image: DC Circuit from ExecutiveGov.com.

The MetroPCS appeal was stamped by the clerk of the court as having arrived on January 24th, so it was timely. I have a PDF if you’d like one.
I agree that the same judges who heard the Comcast appeal should hear this one. The judges are already up to speed on the issue, and consistency is important.
Brett – re the panel: as a matter of pure judicial economy, I would agree with you; it seems wasteful to have a new panel start over. But as a matter of politics and legitimacy, I would rather see a different panel or an en banc decision. If the decision goes against the rule, as indeed I think it will, then the netnuts will attack it vehemently, and it will be more persuasive it is by a different set of judges than rendered the Comcast opinion.
Of course, a new panel might say that it is bound by the Comcast precedent in any case. It may that the matter will be heard en banc, if it is heard in DC at all. One advantage of this would be that it would render Supreme Court review unlikely, however it comes out. An en banc DC Circuit opinion an administrative law matter would not be attractive SCOTUS fodder.
Re the timing – I am not surprised. The reporters had no reason to grasp the importance of the dates, and several of them referred to “this morning,” but it seemed unlikely that MetroPCS would have made this mistake.
[...] This post was mentioned on Twitter by Nick R. Brown, Trapit. Trapit said: Update: Appeals of the FCC Net Neutrality Rule http://chtr.it/58ezEP #Internet #NetNeutrality [...]
Dear Jim,
Thanks for linking to my CNET piece from this morning in your post today on the NN cases. After exhausting myself with research, I then read your original two posts and could have saved myself a lot of reading. I would have liked to quote you in today’s piece, but I only started work on it at midnight and filed it at 3 AM. Somehow I didn’t imagine you to be available then!
LD
[...] Appeal? (Jan. 21); More on the Verizon Appeal of the Net Neutrality Regulation (Jan. 24); Update: Appeals of the FCC Net Neutrality Rule (Feb. [...]
Leave your response!
Twitter Feed
About Us
Digital Society is a digital think tank that believes culture and commerce are inseparable, that the digital economy flourishes when people are free and rights are secure, and that free markets free people.
Digital Society is an independent 501(c)3 non-profit organization, funded by donations from Jon Henke and from Arts+Labs. We advocate for a pro-culture, pro-commerce digital society through research, analysis and debate on emerging technology issues.
Reply Comments
Transparency and interactivity are trademarks of the Internet era, and we aim to foster them here at Digital Society. It is inevitable that some people will disagree with the technology policy positions we take. We want to have that constructive debate.
The Reply Comments feature gives our critics a chance to respond to our viewpoints and the Digital Society audience convenient access to competing arguments. Any time we directly challenge the views of an individual or a group on this site, the party in question may substantively respond in a guest post.
Please contact executive director Jon Henke by e-mail.
Subscribe
Daily Digest Email
Recent Posts
Recent Posts
Most Commented
Most Viewed