U.S. Chamber sues to block Biden administration digital discrimination rule

WASHINGTON (Reuters) - The U.S. Chamber of Commerce and two Texas business groups sued the Federal Communications Commission on Tuesday seeking to overturn the Biden administration's new digital discrimination rule.

The FCC in November adopted final rules to prevent digital discrimination in access to broadband services under a directive from Congress. Under the new rules, the FCC can investigate broadband access discrimination complaints and can issue penalties to companies violating the rules.

The U.S. Chamber, which filed the challenge in the 5th U.S. Circuit Court of Appeals, said the regulation is overly broad and covers "nearly every business practice related to providing access to broadband -- including pricing."

(Reporting by David Shepardson)