BUFFALO, N.Y. — On April 16, 2021, then Governor Andrew Cuomo visited Buffalo to sign the Affordable Broadband Act into law.
Surrounded by former Google CEO Eric Schmidt, and area lawmakers, Cuomo called law profound.
"The law requires all internet service providers in the state, if you do business in this state, all internet providers must offer high speed internet at an affordable cost," Cuomo said. "$15 a month period, all equipment, all fees, etc."
The state was sued by various lobbying and trade groups, citing that the state can't regulate internet providers because the FCC is the only authority that could do so.
In June 2021, the state lost to the ISP's in district court and the mandate was never implemented.
But New York State appealed that decision in the U.S. Court of Appeals for the Second Circuit in January 2023.
On April 26, 2024, the Second Circuit issued its ruling and reversed the district court, allowing the law to take effect.
According to the courts decision:
"The ABA is not conflict-preempted by the Federal Communications Commission’s 2018 order classifying broadband as an information service. That order stripped the agency of its authority to regulate the rates charged for broadband internet, and a federal agency cannot exclude states from regulating in an area where the agency itself lacks regulatory authority."
The circuit court also concluded that the internet providers were essentially trying manipulate the 2018 FCC order that nullified net neutrality by arguing in the district court that they should still be protected from regulations.
The Circuit Court cited longstanding Supreme Court precedent that when a federal agency lacks power to regulate, it also lacks power to preempt.
"The Plaintiffs now ask us to save them from the foreseeable legal consequences of their own strategic decisions. We cannot," the ruling said.
2 On Your Side reached out to the New York State Telecommunications Association, one of the plaintiffs in the case, but did not get a response.
Governor Hochul said "access to reliable, high-speed internet isn't a luxury -- it's a necessity.
Since this was a Cuomo-era broadband initiative, 2 On Your Side also reached out to former Governor Cuomo.
A spokesperson said " access to high-speed internet is a necessity - not a luxury anymore, but access is meaningless if you can't afford it. This ruling was the right one and is both a victory for hardworking New Yorkers and a blow to big telecom."
If the associations appeal the Second Circuit ruling, it would be heard in the D.C. circuit court.