In the 1985 case Louisiana Public Service Commission v. Federal Communications Commission, the Supreme Court ruled that state utility commissions could not regulate rates for interstate telephone services. The dispute arose when AT&T sought to increase its interstate rates and was opposed by several states, including Louisiana. The FCC approved the rate increase but some states objected on grounds of it being excessive and discriminatory against their residents. They argued that they had authority under federal law to review such increases for reasonableness before they went into effect in their respective jurisdictions. The Supreme Court disagreed with this argument, ruling in favor of FCC's exclusive jurisdiction over interstate communication service rates based on interpretation of Communications Act of 1934 which established a system of dual state-federal regulation over phone services - intrastate calls regulated by states while interstate ones were subject to federal control through FCC. This decision underscored supremacy clause where federal laws take precedence over conflicting state laws or regulations; hence reinforcing principle that only one sovereign (in this case, FCC) should have final say in setting these types of nationwide policies.

In the dissenting opinion for Louisiana Public Service Commission v. Federal Communications Commission, Justice White argued that the majority's decision to allow FCC jurisdiction over intrastate communication services was a misinterpretation of the Communications Act of 1934. He contended that Congress intended to preserve state authority over intrastate communications and only granted FCC control over interstate services. The majority’s interpretation, he believed, would result in an unnecessary duplication of regulatory efforts between federal and state agencies and could potentially lead to conflicting regulations. Furthermore, he disagreed with the notion that technological advancements justified expanding FCC's power beyond what was originally intended by Congress.