Netflix slams FCC's 'misguided' decision to repeal net neutrality and signals legal battle

Netflix has criticised the Federal Communications Commission’s (FCC) decision to repeal net neutrality rules, saying it is “the beginning of a longer legal battle”.

“We’re disappointed in the decision to gut #NetNeutrality protections that ushered in an unprecedented era of innovation, creativity and civic engagement,” the company said in a tweet shortly after the agency voted on the measure. “This is the beginning of a longer legal battle. Netflix stands w/ innovators, large and small, to oppose this misguided FCC order.”

The FCC voted 3-2 along party lines to scrap Obama-era protections – a move that gives an enormous amount of power to internet service providers (ISPs), which will no longer need to treat all internet traffic equally.

The net neutrality rules had banned ISPs from blocking, slowing down or speeding up access to certain content.

Last January, Netflix wrote to company shareholders that it would be fine if the protections were rolled back.

“Weakening of US net neutrality laws, should that occur, is unlikely to materially affect our domestic margins or service quality because we are now popular enough with consumers to keep our relationships with ISPs stable,” the company said.

This indicates that Netflix could use its weight in the market to get good deals with ISPs, potentially giving it an edge over smaller or future streaming competitors that could get bogged down by fees.

Public interest groups have already vowed to challenge the Democrats in court, and Democrats plan to push for a legislative fix.

New York Attorney General Eric Schneiderman also said he is suing the FCC to block the repeal from going into effect.

FCC chairman Ajit Pai and others in favour of the decision argued that the deregulation of the internet would spur innovation. The FCC would have the authority to sue providers who abuse competition on the web, they said.