Supreme Court Decision in Loper Bright Enterprises v. Raimondo: Impact on Federal Agencies and Telecommunications Policy

The Supreme Court’s recent 6-3 decision to overturn the landmark ruling in Chevron v. Natural Resources Defense Council has sent shockwaves through federal administrative agencies, including the FCC. This decision, known as the Loper Bright Enterprises v. Raimondo case, will have far-reaching implications for a wide range of federal agencies, impacting core policy areas such as banking, healthcare, energy, the environment, and notably, telecommunications.

The overturning of the Chevron doctrine, which provided deference to agency interpretations of statutes, will significantly impact ongoing telecommunications and broadband policy debates. This includes issues such as the regulatory classification of broadband Internet services and the scope of the FCC’s Title II authority. The decision may also reopen previous regulatory debates on spectrum allocation, pole attachment, and rights-of-way management decisions.

The Chevron doctrine, established forty years ago, allowed agencies like the FCC to address evolving technologies and policies based on their expertise. However, the Loper decision, driven by conservative efforts, concluded that Chevron deference is inconsistent with the Administrative Procedures Act and violates the U.S. Constitution. The Court emphasized that courts should exercise independent judgment in interpreting statutes, rather than deferring to agency interpretations.

The impact of the Loper decision on telecommunications and broadband policy is expected to be significant. It could lead to challenges of FCC and NTIA rulings that lack clear statutory support. For example, the FCC’s Open Internet Order, which has faced challenges in court, may be further contested following the removal of Chevron deference.

Other key telecom and broadband policy areas likely to face challenges include the FCC’s Digital Discrimination Order and the administration of the federal Universal Service program. The decision could also enable litigants to reopen past FCC decisions that were not previously challenged, leading to increased uncertainty in the telecommunications regulatory landscape.

Overall, the Supreme Court’s decision to overturn the Chevron doctrine is expected to prompt calls for major new legislation in the telecommunications and broadband sector. The future of telecommunications policy will be clouded by uncertainty as agencies navigate the new standard of review set forth by the Loper decision.