A U.S. appeals court ruled on Thursday that the Federal Communications Commission (FCC) does not have the legal authority to reinstate the net neutrality rules that were initially established in 2015.
This ruling is a setback for the outgoing Biden administration, which had prioritized the restoration of these open internet protections. President Joe Biden had signed an executive order in 2021 urging the FCC to reinstate the rules, which had been repealed in 2017 under the Trump administration.
The 6th U.S. Circuit Court of Appeals in Cincinnati, consisting of a three-judge panel, concluded that the FCC lacked the power to reinstate the net neutrality regulations. These rules, which were first implemented during the Obama administration, prohibited internet service providers (ISPs) from restricting access, slowing down speeds, or blocking content. They also banned practices that favored certain users by offering them faster speeds or better access to certain content.
The court’s decision referenced the Supreme Court’s ruling in the June 2023 case known as Loper Bright, which overturned a long-standing precedent that had granted government agencies more authority in interpreting the laws they oversee. The court stated that the Loper Bright ruling allowed it to prevent the FCC from reversing course repeatedly on this issue.
The decision upholds state-level net neutrality laws, such as those passed in California, but it limits the scope of federal regulation over the internet. This ruling could mark the end of more than two decades of attempts to establish robust federal oversight of the internet.
Brendan Carr, the incoming FCC Chair who voted against reinstating the net neutrality rules, praised the court’s decision, calling it a victory against what he described as Biden’s “internet power grab.” He promised to work on undoing other regulations imposed on the industry.
In response to the ruling, current FCC Chair Jessica Rosenworcel urged Congress to act. “Consumers across the country have told us repeatedly that they want an internet that is fast, open, and fair. With this decision, it is clear that Congress must take action to protect net neutrality and enshrine open internet principles into law,” Rosenworcel said in a statement.
In April, the FCC had voted along party lines to regain regulatory oversight of broadband internet and reinstate the open internet rules, but industry groups filed lawsuits against the move, ultimately leading to the court’s decision to block the rules temporarily.
USTelecom, an industry group representing major telecom companies such as AT&T and Verizon, hailed the court’s decision, claiming that it would benefit consumers by fostering more investment, innovation, and competition in the digital marketplace.
Former FCC Chair Ajit Pai, a critic of the net neutrality rules, argued that the ruling should bring an end to efforts to reinstate the regulations. He emphasized the need to focus on improving internet access and promoting online innovation instead.
While the Trump administration is unlikely to appeal the decision, net neutrality advocates may attempt to seek a review by the Supreme Court.
Had the net neutrality rules been reinstated, the FCC would have gained additional powers to address concerns like regulating Chinese telecom companies and monitoring internet service outages. Major companies such as Amazon, Apple, Alphabet, and Meta Platforms had supported the restoration of the FCC’s net neutrality regulations.
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