[dsp1234]

What makes this decision arbitrary or capricious?

Note that 'Arbitrary or capricious' is a legal standard of review for a government agency's decisions[0].

"In administrative law, a government agency's resolution of a question of fact, when decided pursuant to an informal rulemaking under the Administrative Procedure Act (APA), is reviewed on the arbitrary and capricious standard. Arbitrary and capricious is a legal ruling where in an appellate court determines that a previous ruling is invalid because it was made on unreasonable grounds or without any proper consideration of circumstances. This is an extremely deferential standard."

It's a pretty low bar, but it exists.

[0] - https://en.wikipedia.org/wiki/Standard_of_review#Arbitrary_a...

[paulmd]

Sounds a lot like rational-basis but for administrative rulemaking (vs laws). i.e. the lowest possible bar the courts can impose. All you need is a reason this would accomplish some valid goal - doesn't have to be a good reason, doesn't have to have any basis in fact, it certainly doesn't have to be one you agree with. Just, "can you give me a reason for this law".

So, the reason here is "promoting competition". No need to demonstrate that this rule actually does it (in fact it does not, but that doesn't matter).

Courts ain't gonna do shit on this, sorry.