US appeals court rejects Verizon’s and MetroPCS’ complaints against FCC

Complaints filed by some wireless companies against FCC rules were declined by a US federal appeals court as premature. The U.S. Court of Appeals for the District of Columbia Circuit granted on Monday the Federal Communications Commission's motions to dismiss as premature lawsuits filed by Verizon Communications Inc and MetroPCS Communications Inc.

Both companies filed complaints against FCC accusing the regulator of overstepping its authority in creating new rules aimed at regulating Internet traffic.

The new FCC rules, which are criticized by many as another attempt by a government to regulate the Internet, would prevent network operators from blocking lawful content but still let them ration access to their networks.

Verizon and MetroPCS claim that the rules would modify wireless licenses they hold in an attempt to anchor their challenges in a venue favorable to them.

The same appeals court ruled last year that the FCC lacked the authority to stop Comcast Corp from blocking bandwidth-hogging applications on its broadband network.

However, the court ruled to uphold the traditional process for overturning rulemakings.

"The challenged order is a rulemaking document subject to publication in the Federal Register, and is not a licensing decision," the D.C. Circuit said on Monday.

The rules, which provided additional flexibility for wireless providers, have still not been published in the Federal Register.

"The prematurity is incurable," the court said.

Verizon spokesman Ed McFadden said the FCC's rules governing the timing of an appeal were unclear, so their early filing was simply to protect their right to appeal.

He viewed the court's decision as just part of the procedural process.