NEW YORK — New York can move forward with a law that would require Internet service providers to offer deeply discounted rates to low-income residents, a federal appeals court ruled Friday.
The ruling by the 2nd U.S. Circuit Court of Appeals in Manhattan reverses a 2021 lower court ruling that blocked the policy just days before it was to take effect.
The law would force Internet companies to provide broadband service to some low-income New Yorkers for as little as $15 a month, or face fines from the state.
Telecommunications trade groups sued the law, arguing that it would cost them too much money and that it would improperly replace a federal law governing Internet services.
On Friday, industry groups said they were evaluating the next legal step.
“We are disappointed with the court’s decision and New York State’s move to regulate rates in competitive industries. This not only discourages needed investment in our country’s infrastructure, but also potentially puts the sustainability of broadband operations in many areas at risk,” a statement read.
New York state lawmakers passed the law in 2021 as part of the budget, with its supporters arguing that the policy would give low-income residents a way to access the internet, which has become a vital service.
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