Regulators Clamp Down on Politics, Data Caps and AI Booking

Michigan Ballot Limits Utility Political Spending

Voters in Michigan approved a constitutional amendment that bars utilities from spending money on state elections. The measure passed with a clear majority in the November 2024 ballot.

The amendment, known as Proposal 1, prohibits electric and gas utilities from contributing to political campaigns or ballot initiatives. Utility companies immediately filed a lawsuit, arguing the restriction violates their First‑Amendment rights to free speech. The case is now pending in state court (WIRED). The outcome could reshape how regulated industries influence policy across the Midwest.

If the courts uphold the amendment, utilities will lose a long‑standing lobbying channel. Critics say the loss will reduce transparency about corporate influence. Proponents argue the change will curb corporate money in politics and restore voter confidence.

New York Cracks Down on T‑Mobile Data Caps

New York’s public service commission ordered T‑Mobile to stop throttling speeds on low‑income broadband plans. The regulator cited violations of the Affordable Broadband Act, which guarantees a minimum 25 Mbps connection for qualifying households.

T‑Mobile had imposed a 50 GB data cap on its low‑income plan and reduced speeds to 600 Kbps once users exceeded the limit. The cap conflicted with the statutory speed floor, prompting the commission’s intervention (Engadget). The company must now offer the full 25 Mbps speed for the duration of the plan, regardless of data consumption.

The decision follows a separate complaint that the cap was illegal under state law (Ars Technica). T‑Mobile’s defense rests on network management concerns, but regulators view the practice as a breach of consumer protections for vulnerable households.

FCC Politics and Democratic Pushback

Democrats in the Senate are resisting a Republican‑led effort to stack the Federal Communications Commission with partisan appointees. The opposition centers on the nomination of a new FCC chair who has avoided answering questions about her current boss, FCC Chairman Jessica Rosenworcel (Ars Technica).

Committee members allege the nominee’s silence signals a willingness to sidestep oversight. The Democrats argue that the move threatens the agency’s independence at a time when broadband policy and net neutrality are under intense debate. The dispute highlights the broader partisan battle over who controls the nation’s communications infrastructure.

If the Senate confirms the nominee without additional hearings, the FCC could see a shift in its approach to emerging technologies, including 5G deployment and spectrum allocation. Critics warn that a more partisan commission may prioritize industry interests over consumer safeguards.

United Bans AI Agents from Flight Booking

United Airlines announced a blanket ban on autonomous AI agents that attempt to reserve tickets through its website. The airline says the restriction stems from security concerns and potential violations of Department of Transportation and Federal Aviation Administration regulations (Engadget).

The policy applies to any software that can autonomously fill out booking forms, select flights, and complete payment without human oversight. United’s legal team cited incidents where AI tools accessed restricted data fields, raising the risk of fraud or data leakage. The airline is also monitoring third‑party travel apps for similar behavior.

The move marks one of the first explicit prohibitions on AI‑driven commerce in the airline sector. Industry analysts note that the decision could prompt other carriers to adopt comparable rules, especially as large language models become more capable of interacting with web interfaces.

What to Watch

The Michigan amendment will soon appear before a state appellate court; a ruling could set precedent for similar ballot measures in other states. In New York, T‑Mobile must file a compliance plan within 30 days, and regulators will audit the company’s network to ensure the 25 Mbps floor is met. The Senate’s vote on the FCC nominee is slated for early 2025, and the outcome will influence broadband policy ahead of the next midterm elections. United’s AI ban will be tested as developers attempt workarounds; the airline’s compliance reports to the DOT will reveal whether the policy curtails security incidents. Tracking these decisions will show how regulators balance innovation, consumer protection, and political influence across the tech ecosystem.