Net Neutrality Game Changer? California’s New Internet Access Law

Erin Kelly
Small Business, Big World
3 min readOct 2, 2018

California has made net neutrality history.

In the latest development concerning fair and equal internet access, California Gov. Jerry Brown has recently signed a bill that restores the state’s net neutrality regulations. And then some.

The new law, which was signed on September 30, is the strictest net neutrality measure in the US to date.

Net neutrality, the principle that internet providers treat all data equally, has been a topic of much debate in the past year. State legislators, small businesses, and consumers have dealt with the rollback of previous rules that gave everyone the same level of internet access.

While some other states have already approved net neutrality legislation, California’s new law is considered the most comprehensive effort to restore fair internet access rules since the Federal Communications Commission (FCC) last year repealed the net neutrality measures that were established under former President Barack Obama.

About the California Law

California’s new law is based on net neutrality protections set in 2015 by the Obama administration. Those rules ensured internet service providers couldn’t charge more for faster service and stopped them from changing website delivery speeds and charging users additional fees for access.

In fact, not long before the new legislation was signed, the matter of net neutrality received attention when it came to light that Verizon had limited the data speed of California firefighters as they battled the Mendocino Complex fire.

But the California law goes even further than the 2015 rules by outlawing “zero-rating,” which is when internet providers don’t count certain content against a user’s monthly data cap.

And this also isn’t the only internet-focused legislation that the state has made headlines for this year. In June, California passed a new law giving consumers more control over and insight into the use of their personal information online.

What it Means for Small Businesses

A survey found that a quarter of small businesses say net neutrality is very important to their operations and about half consider it important.

And when you look at the implications, it’s no surprise why.

Without net neutrality rules, small businesses and startups are at a disadvantage against bigger companies that can afford to pay for greater exposure to users. Not to mention that the free reign internet providers have without net neutrality means they can set up paywalls as they please.

For small businesses, this could jeopardize their ability to grow and reach new audiences, since many rely on the internet to sell and market their products and services.

With its legislation, California will protect startups and small businesses that would not be able to compete with larger websites that form deals with service providers to increase their exposure, while also limiting consumers’ access to competitor content by slowing down traffic to and from certain sites and apps.

What’s Next?

A hint: expect more states to follow.

As mentioned earlier, California is not the only state to pass net neutrality rules (Washington, Oregon, and Vermont have passed their own laws), but it has potentially set a standard that others will adopt. And many other states are already considering implementing regulations.

The New York Times reports that similar to “California’s auto emissions laws that forced automakers to adopt the standards for all production, the state’s new net neutrality rules could push broadband providers to apply the same rules to other states.”

But, while net neutrality advocates are hoping California’s law will pave the way for national rules, some government bodies have rejected the state’s legislation and are working to have it overturned. And that’s not the only legal challenge underway. In August, the attorneys general of 22 states and the District of Columbia filed a brief with a US Appeals Court to reverse the FCC’s net neutrality rollback.

One thing’s for certain, the debate surrounding net neutrality won’t be slowing down anytime soon. California may be the first to demand such measures, but won’t be the last.

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