Its not unambiguous. Google is based in CA, I am based in CA. Packets may go across state lines, but the commercial transaction (a search query) has occurred between two CA entities and should fall under state law.
It doesn't work like that. Once Congress enacts something then it can be preempted by federal law. Just because the activity took place in a single state doesn't mean that the Federal courts don't have jurisdiction. Erisa is a good example.
I wasn't arguing that, I was saying that it's not an unambiguous case of interstate commerce. Congress shouldn't be pre-empting the laws of California insofar as they apply to intrastate commerce. You can set a federal minimum and let each state enhance laws as they see fit.
Agreed, but as we've seen with many other federal laws once you have preemption then it is usually interpreted to the broadest extent and not the minimum.