Federal officials considering ending FTC’s legal prohibition on regulating internet providers

Federal officials are considering ending the Federal Trade Commission's legal prohibition on regulating internet providers and telecom companies which could see Washington gain wider authority to police perceived abuses and anti-consumer actions in an increasingly important part of the economy, The Washington Post reported.

In the event of the idea gaining ground, it could end up empowering both the FTC and the Federal Communications Commission to go after errant carriers. It could also usher in greater cooperation between the two agencies as telecommunications, business and entertainment continue to converge on broadband networks.

The issue had gained increasing importance with the FCC last month deciding to start regulating internet providers more closely under net neutrality, after turning them into what the agency called "common carriers."

However, the FTC's congressional charter carried an exemption for common carriers - a provision that effectively prevented the FTC from taking enforcement actions against such firms and reserves that right for the FCC.

Senior FTC officials have complained that the FCC's new rules would put Internet providers out of their reach - and rob the FTC of the ability to protect consumers.