Federal Communications Commission Chairman Tom Wheeler went ahead with his proposal on Thursday to give his agency the power to decide whether the terms and prices of broadband Internet services are "reasonable." That's bad enough as political discretion, but according to dissenting Commissioner Ajit Pai, regulators from every state will also be able to get into the act.

Mr. Wheeler's goal is to satisfy the "net neutrality" supporters demanding that every broadband customer receive the same deal, no matter...