ITFA Limits FCC Control over Internet

(May 15, 1998)  The consensus version of the Internet Tax Freedom Act introduced Tuesday and passed by the House Commerce Committee overwhelmingly on Thursday morning not only protects the Internet from a myriad of potential taxes from thousands of state and local taxing authorities -- it restricts the Federal Communications Commission's ability to fix prices and assess regulatory fees in connection with the Internet.

The Federal Communications Commission (FCC) does not have authority to tax or regulate the Internet or information services, but recently it has been acting as though it does.  This has concerned Internet proponents in the House, such as Rep. Chris Cox (R-CA) and Rep. Rick White (R-WA).

Rep. Cox has accused the FCC of becoming the "Federal Computer Commission."   Rep. White is the lead sponsor of the Internet Protection Act (HR 2372).

Section 2 of HR 3849 would insert a new Section 231 into the Telecommunications Act of 1996 which prevents the FCC, as well as the states, from regulating prices paid for Internet access or services.  Section 3 would amend Section 159 of the Telecommunications Act of 1996 to prevent the FCC from assessing regulatory fees on providers of Internet access or online services.

To monitor whether any direct or indirect regulatory fees are imposed on providers of Internet access or online services, the bill would require that a report be written, not by the FCC, but by the National Telecommunications and Information Administration.  The NTIA is a part of the Internet friendly Department of Commerce.

The bill would also require a report on foreign electronic commerce and telecommunications, also from the Department of Commerce.  Finally, the bill would create an Advisory Commission on Electronic Commerce to recommend further legislation: the 29 member panel would not include representation from the the FCC.