Net Neutrality Rules Struck Down by Appeals Court

A federal appeals court overturned the Federal Communications Commission’s (FCC) landmark net neutrality regulations on Thursday, ending a nearly 20-year effort to regulate broadband internet providers as public utilities.https://wordpress.com/

The U.S. Court of Appeals for the Sixth Circuit, based in Cincinnati, ruled that the FCC lacked the authority to reinstate rules that would prevent broadband providers from throttling or blocking access to internet content. The court’s opinion referenced a June Supreme Court ruling, Loper Bright, which overturned a 1984 precedent that had given government agencies more leeway in creating regulations.

“By applying the Loper Bright decision, we can bring an end to the FCC’s inconsistent approach,” the court concluded.

This ruling effectively terminates the Biden administration’s flagship tech policy, which had gained strong support from consumer advocacy groups and tech giants such as Google, but faced staunch opposition from telecom giants like Comcast and AT&T.

The FCC had voted in April to reinstate net neutrality rules, which would expand government oversight of broadband providers and safeguard consumer access to the internet. These regulations were originally put in place under the Obama administration nearly a decade ago, aiming to prevent internet service providers like Verizon and Comcast from blocking or degrading services from competitors such as Netflix and YouTube. The rules were repealed during Donald Trump’s first term, but the issue remained a contentious partisan battle.

Thursday’s decision brings a final resolution to the ongoing debate. Brendan Carr, appointed by Trump as the incoming FCC chair, has been a vocal critic of net neutrality. The court’s reliance on the Loper case could signal more lawsuits that may challenge federal regulations at the FCC and other agencies.

“The court’s opinion ends an issue that has unnecessarily dominated discussions in tech and telecom for the past 20 years,” said Evan Swarztrauber, a former policy adviser to Carr.

Carr expressed satisfaction with the decision, stating that the work to dismantle what he called the Biden administration’s regulatory overreach would continue.

However, the court’s ruling does not impact state-level net neutrality laws in California, Washington, and Colorado. FCC Democrats called on Congress to pass laws that would enforce net neutrality at the federal level, suggesting the issue may persist.

“Consumers have consistently told us they want an internet that is fast, open, and fair,” said FCC Chairwoman Jessica Rosenworcel, a Democrat who had advocated for the return of the rules. “It’s clear Congress must now take action, prioritize net neutrality, and enshrine open internet principles into federal law.”

Judge Richard Allen Griffin, who authored Thursday’s opinion, acknowledged the complexity of the internet and the FCC’s expertise in regulating this area. However, he argued that the FCC’s interpretation of its authority to classify broadband internet as a utility was beyond the scope defined in the Telecommunications Act.

“The FCC lacks the legal authority to enforce its desired net neutrality policies,” Griffin stated.

Net neutrality was first introduced in 2003 by Columbia University law professor Tim Wu, who warned that broadband internet providers could become gatekeepers, restricting access to or charging for content. This concept gained support from tech giants such as Google, Facebook, and Netflix, who lobbied the FCC to adopt rules that would prevent ISPs from favoring certain types of content.

In 2010, under Democratic Chairman Julius Genachowski, the FCC introduced its first net neutrality proposals, generating significant public interest and widespread protests. The rules were seen by progressives as a necessary counterbalance to corporate power, ensuring a fair and open internet.

However, cable and telecom companies opposed these regulations, arguing they represented overreach. They feared that treating broadband providers as “common carriers” like phone companies would open the door to utility-style regulation, including price controls.

Broadband providers praised the court’s ruling. “This is a major victory in our fight against the government’s unwarranted internet takeover,” said Grant Spellmeyer, CEO of ACA Connects, a small cable trade group.

In recent years, public focus has shifted away from net neutrality as the spotlight turned to social media platforms, with concerns over misinformation and their impact on young users. However, the regulatory battle continued, with each administration taking steps to either implement or undo the rules along partisan lines.

“The market has lost interest in this issue for some time,” said Blair Levin, former FCC chief of staff and current adviser to NewStreet Research.