US appeals court blocks Biden administration’s efforts to roll back net neutrality rules By Reuters
David Shepardson
WASHINGTON (Reuters) – A U.S. appeals court ruled on Thursday that the Federal Communications Commission lacks legal authority to reinstate landmark net neutrality rules.
The decision is a blow to the outgoing Biden administration, which has made restoring open internet rules a priority. President Joe Biden signed an executive order in 2021 encouraging it FCC (BME:) to re-establish the rules.
A three-judge panel of the 6th U.S. Circuit Court of Appeals, based in Cincinnati, said the FCC lacked the authority to reinstate rules the agency initially implemented in 2015 under Democratic former President Barack Obama, but the commission then rescinded in 2017 under former Republican President Donald Trump.
Net neutrality rules require internet service providers to treat internet data and users equally rather than restrict access, slow speeds or block content for certain users. The rules also prohibit special arrangements in which ISPs give enhanced network speeds or access to favored users.
The court cited the Supreme Court’s June decision in a case known as Loper Bright to overturn a 1984 precedent that gave deference to government agencies in interpreting the laws they enforce, in the latest decision to limit the powers of federal agencies. “Applying Loper Bright means we can end the FCC’s vacillation,” the court ruled.
The decision leaves in place state neutrality rules adopted by California and others, but could end more than 20 years of efforts to allow federal regulators extensive oversight of the Internet.
FCC Chair Jessica Rosenworcel urged Congress to act after the decision. “Consumers across the country have told us time and time again that they want an internet that’s fast, open and fair. With this decision, it’s clear that Congress must now heed their call and take responsibility for net neutrality and open internet principles in federal law,” Rosenworcel said in the declare.
In April, the FCC voted along party lines to restore regulatory oversight of broadband and reinstate open internet rules. Industry groups sued and successfully convinced the court to temporarily block the rules while they considered the case.
New FCC Chairman Brendan Carr voted against reappointment last year. He did not immediately comment Thursday.
Former FCC Chairman Ajit Pai said the court’s ruling should mean an end to efforts to re-establish the rules and a shift in focus to “what really matters to American consumers — like improving Internet access and promoting online innovation.”
The Trump administration is unlikely to appeal the decision, but net neutrality advocates could seek a Supreme Court review.
The rules would give the FCC new tools to crack down on Chinese telecommunications companies and the ability to monitor disruptions to Internet service.
A group representing companies including Amazon.com (NASDAQ: ), Apple (NASDAQ: ), Alphabet (NASDAQ: ) and Meta Platforms (NASDAQ: ) supported the FCC’s net neutrality rules, while USTelecom, an industry group whose members include AT&T ( NYSE:) and Verizon (NYSE:), last year called the reestablishment of net neutrality “a completely counterproductive, unnecessary and anti-consumer regulatory distraction.” (This story has been corrected to correct the day from Tuesday to Thursday in paragraph 1)
