The net neutrality rules gave the FCC power to go after companies for business practices that weren't explicitly banned as well.
The draft is expected to be released publicly tomorrow with a vote on whether to launch the proceeding set for December 14. However, the new rules are highly expected to pass since Pai's party is controlling three of the Commission's five seats.
"Instead, the FCC would simply require Internet service providers to be transparent about their practices so that consumers can buy the service plan that's best for them and entrepreneurs and other small businesses can have the technical information they need to innovate", he said. "Under my proposal, the federal government will stop micromanaging the Internet". The dismantling of net neutrality rules is seen as a major shift from Obama-era policies created to treat all websites and content equally.
Lifting the rules will allow Internet providers to experiment with new ways of making money. The beneficiaries of the revocation include broadband and telecommunication companies such as AT&T as well as Comcast. A few months from the time President Trump appointed him, Mr. Pai revealed his intention of scrapping off the rules on claims that they were put in place because of some hypothetic and theoretic harm that was anticipated.
Internet providers welcomed Tuesday's FCC announcement.
Some analysts said that the FCC proposal was appropriate and that there is no economic evidence for regulatory intervention.
"This proposal undoes almost two decades of bipartisan agreement on baseline net neutrality principles that protect Americans' ability to access the entire internet", Michael Beckerman, president and CEO of the Internet Association, said in a statement. "Thanks in part to net neutrality, the open internet has grown to become an unrivaled source of choice, competition, innovation, free expression, and opportunity".
Pai began circulating his proposal among the FCC commissioners on Tuesday.
Terrell McSweeny tweeted "So many things wrong here, like even if @FCC does this @FTC still won't have jurisdiction".
Matt Wood, policy director for the advocacy group Free Press, likened the proposed system to the way that many companies design their privacy policies. He said earlier this year "people tell me that they want fast, affordable and reliable internet access". "We believe", Verizon said in a statement to ABC, "that users should be able to access the internet when, where, and how they choose, and our customers will continue to do so".
The FCC's proposal puts additional pressure on Capitol Hill, where some lawmakers have called for federal legislation that would supersede any FCC rules.
Net neutrality is the principle that internet providers treat all web traffic equally, and it's essentially how the internet has worked since its inception.
Congressional Democrats have resisted working with Republicans on a net neutrality bill, saying that Pai's proposal is unlikely to survive an expected court challenge from supporters of the 2015 rules. That's good for shareholders, he said, but not good for consumers, who might see higher costs passed through to them.
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