WASHINGTON (Reuters) — A US appeals court ruled on Thursday that the Federal Communications Commission lacked legal authority to reinstate landmark net neutrality rules.
The decision is a setback for the outgoing Biden administration, which had made restoring the open internet rules a priority. President Joe Biden issued a 2021 executive order urging the FCC to reinstate the rules.
A three-judge panel of the Cincinnati-based 6th U.S. Circuit Court of Appeals ruled that the FCC lacked authority to reinstate rules that were first implemented in 2015 by the agency under Democratic former President Barack Obama and then repealed by the commission in 2017 under Republican former President Donald Trump.
Net neutrality rules require internet service providers to treat internet data and users equally, rather than restricting access, slowing speeds, or blocking content for specific users. The rules also prohibit special arrangements in which ISPs provide faster network speeds or access to preferred users.
In the most recent decision to limit federal agencies’ authority, the court cited the Supreme Court’s June decision in Loper Bright, which overturned a 1984 precedent that had given deference to government agencies in interpreting laws they administer. “Applying Loper Bright means we can put an end to the FCC’s vacillations,” the court ruled.
The decision maintains state neutrality rules adopted by California and others, but it could end more than 20 years of efforts to give federal regulators broad control over the internet.
FCC Chair Jessica Rosenworcel urged Congress to act following the decision. “Consumers across the country have repeatedly expressed their desire for a fast, open, and fair internet. With this decision, it is clear that Congress must now heed their call, take up the fight for net neutrality, and enact open internet principles into federal law,” Rosenworcel said in a statement.
In April, the FCC voted along party lines to resume regulatory oversight of broadband internet and reinstate open internet rules. Industry groups sued, and the court agreed to temporarily block the rules while the case was being heard.
Brendan Carr, the incoming FCC Chair, voted against reinstatement last year. He did not immediately respond on Thursday.
Former FCC Chair Ajit Pai stated that the court ruling should signal the end of efforts to reinstate the rules and a shift to “what actually 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 may seek Supreme Court review.
The rules would have provided the FCC with new tools to crack down on Chinese telecom companies, as well as the ability to monitor internet service outages.
