FCC proposes new undersea cable rules that could benefit Meta and Google while restricting Chinese-linked equipment

The Federal Communications Commission unveiled plans to increase oversight of submarine communications cables, which carry roughly 99% of international internet traffic. Operators of submarine line terminal equipment would be required to obtain licenses for the first time, and the FCC proposed expanding restrictions on equipment viewed as potential national security risks, potentially broadening existing limits to cover technology originating from China and other foreign adversaries.

Companies seeking accelerated approvals for additional cable systems would need to meet stricter security requirements, including safeguards against espionage, stronger data protection measures, and enhanced compliance monitoring. Operators in the fast-track process would also need to avoid equipment considered a security risk.

Meta and Google, both major investors in global cable networks that support cloud computing, artificial intelligence services, and rising internet traffic demands, could benefit from faster undersea cable approvals under these new rules.