Company: CRCT
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001828962-25-000039
Chunk: 65

Company: Cricut, Inc.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 1A
Chunk 65
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 our systems, could cause current or potential users to believe that our systems or services are unreliable, leading them to switch to our competitors or avoid using our products and platform, and could permanently harm our reputation and brands.

In addition, users who access our platform through mobile devices, such as smartphones and tablets, should utilize a high-speed connection, such as Wi-Fi, 4G, 5G or LTE, to ensure the best experience with our services and design apps. Currently, this access is provided by companies that have significant and increasing market power in the broadband and Internet access marketplace, including incumbent phone companies, cable companies and wireless companies. These providers could take measures that degrade, disrupt or increase the cost of user access to high-speed Internet connections, any of which would make our platform less attractive to users, and reduce our revenue. Failures of Internet infrastructure or interference with broadband access may also impact our international expansion in countries that lack widespread high-speed Internet.

Further, broadband Internet service providers operate in a rapidly evolving legal environment, and existing or future legislation or regulations, or absence thereof, including Internet neutrality regulations, could adversely affect our users’ ability to access broadband Internet service or certain content, or create different user experiences in certain jurisdictions. In January 2025, the U.S. Court of Appeals for the Sixth Circuit struck down the Federal Communications Commission’s, or FCC’s, 2024 net neutrality order that reinstated the FCC’s 2015 rules prohibiting broadband providers from blocking, impairing, or degrading access to lawful content, applications, services, or non-harmful devices, or engaging in paid prioritization (e.g., favoring certain lawful internet traffic over other traffic in exchange for higher payments). Several states have enacted or are considering state-level legislation or executive action that would implement certain net neutrality protections, including some that go beyond those established in the FCC’s 2015 net neutrality order (e.g., restrictions on zero-rating—i.e., the practice whereby an ISP exempts certain Internet traffic from a customer's data cap). State broadband regulations have been upheld by courts in certain jurisdictions, creating the potential for a patchwork of disparate regulatory regimes whereby broadband Internet access providers may be able to block or throttle content, or charge web-based services such as ours for priority access to customers in some jurisdictions but not others, which could result in increased costs to us and a loss of existing users, impair our ability to attract new users and materially and adversely affect our business and opportunities for growth.

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The future of broadband regulation