The FCC has decided to halt new data security regulations the agency adopted last year, which is a huge sigh of relief for broadband companies. The new regulations were supposed to take effect starting on March 2nd.
Since last year, numerous entities have signed a petition protesting the changes. Here are some of the petitioners:
– AT&T Inc.
– Comcast Corporation
– T-Mobile US Inc.
– Verizon Communications Inc.
If the new rules had become effective, it would have been dire news for high-speed ISPs such as AT&T and Verizon. These ISPs use collected user data to serve targeted ads. Under the new rules, they would have been obligated to ask their users for permission first, which means that without proper consent, they would not be allowed to collect data such as app use, browser history, financial information, and location of their users.
The 2016 data security requirement set a new standard for broadband companies. The new regulations required them to take appropriate measures to protect sensitive customer information from unauthorised use, access, and disclosure.
The petitioners pointed out that complying with the new rules would mean having to bear the financial burden of doing so, and that the monetary sum might be quite substantial.
If the rule had taken effect, the broadband companies would have had to drastically alter their business model. The halting of the order gives much-needed breathing room for the providers, who will now have equal opportunities in the world of online advertising.