New U.S. rules aimed at strengthening oversight of undersea internet infrastructure could make it easier for trusted tech companies such as Meta Platforms, Inc. (NASDAQ:META) and Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google to expand global cable networks while tightening restrictions on Chinese-linked equipment.
FCC Targets Security Risks In Undersea Internet Cables
On Wednesday, the Federal Communications Commission unveiled plans to increase oversight of submarine communications cables, which carry roughly 99% of international internet traffic.
Among the proposed changes, the FCC said operators of submarine line terminal equipment — systems that connect undersea cable networks to U.S.-based terrestrial infrastructure — would be required to obtain licenses for the first time.
The agency also proposed expanding restrictions on equipment viewed as potential national security risks, potentially broadening existing limits beyond specific companies to cover technology originating from China and other foreign adversaries, Reuters reported.
Meta, Google Could Benefit From Faster Undersea Cable Approvals
The proposals could create advantages for large U.S. technology companies, including Meta and Google, both major investors in global cable networks that support cloud computing, artificial intelligence services and rising internet traffic demands.
The FCC said 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 participating in the fast-track process would also need to avoid equipment considered a security risk.
Meta and Google did not immediately respond to Benzinga's request for comments.
Growing Concerns Over China And Critical Infrastructure
The proposed changes come amid increasing concern in Washington over vulnerabilities in the network of more than 400 subsea cables that power global communications.
U.S. lawmakers and security officials have repeatedly warned about espionage risks, infrastructure sabotage and growing geopolitical competition involving China and Russia, prompting calls for stronger protections around critical communications networks.
Price Action: Shares of Meta closed Wednesday up 4.24% at $622.98 and declined 0.60% to $619.25 in after-hours trading. Alphabet's Class A shares closed down 0.79% at $358.99, while Class C shares fell 0.76% to $355.68. Both share classes are slipping further in after-hours trading, according to Benzinga Pro.
Benzinga Edge Stock Rankings place GOOG in the 94th percentile for Quality, reflecting strong performance across short, medium and long-term metrics.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Koshiro K On Shutterstock.com
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