[stcredzero]

Traffic isn't being regulated, packages of services offered to customers in pure intrastate commerce, however, are.

Being the home to so many internet based companies, California is in a position to make such a law which will have a significant effect -- perhaps. How is intra-state defined? On paper, Apple Inc. is incorporated where? Is it really Cupertino? If so, then couldn't they redirect certain traffic to a subsidiary one state over? How would California fight against companies trying to get around their law using routing tables?

[dragonwriter]

The law effects the service an ISP sells to a consumer. Routing tables and where Apple is located (physically or legally) have nothing to do with it.