| > Given that the courts have already decided the FCC has no authority to regulate in this space (outside of Title II), and Ajit himself has said it numerous times, arguing pre-emption seems like a loser. I think Fed gov, is arguing that California cannot regulate interstate commerce. So they cannot, for example create an 'import tax'. I suspect, that eventually the argument will be around Originating and Terminating IP addresses. If both are in CA, then they can regulate it. If at least one outside -- than they cannot. In telecom US taxation is there a well known, rule called 2-out-3 Rule. One has to look at originating number location, terminating number location, and the location of the billing address.
Then the tax will be levied according the rules of the jurisdiction, that is identified by 2 same out of the 3. (I do not remember, what would be the case when all 3 are different... ). So in the case of internet, I suspect, FCC will argue that CA can enforce the rule only for the location that satisfy something similar to 2-out-3 rule. So for CA resident to be within the scope of the enforcement, they would have to use, say a VPN that's is also in CA... Otherwise, CA cannot regulate a genuine interstate service. |
This isn't about traffic, it's about the terms of sale of access service to consumers in the state.