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National Cable & Telecommunications Association v. Brand X Internet Services | 545 U.S. 967 (2005)
Under the Chevron doctrine, courts generally defer to an administrative agency’s interpretation of ambiguities in a statute it administers. But what if an agency’s interpretation conflicts with preexisting judicial precedent? In National Cable and Telecommunications Association versus Brand X Internet Services, we explore the intersection of Chevron deference and stare decisis, the principle that courts should generally adhere to judicial precedent.
The Federal Communications Commission was charged with administering the Communications Act of nineteen thirty-four, as amended. Under the act, telecommunications service providers were subject to common-carrier regulations. Telecommunications service was defined as offering the transmission of information unchanged in form or content to the public for a fee.
When cable companies started selling broadband based on cable-modem service, the commission determined that cable-modem service didn’t constitute telecommunications service, and the cable companies therefore weren’t subject to common-carrier regulations. The commission found the companies were offering the ability to manipulate, process, and store information, rather than to transmit information unchanged.
Various parties petitioned for review of the commission’s determination. When deciding the case, the Ninth Circuit didn’t apply Chevron deference, but instead turned to stare decisis, relying on an earlier court of appeals opinion holding that telecommunications service was best interpreted to include cable-modem services.
The Ninth Circuit vacated the commission’s determination, holding that the on-point precedent prevented the commission from adopting a contrary interpretation. The United States Supreme Court granted cert.
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