US court strikes down net neutrality rules

A US federal appeals court has struck down the Biden Administration’s attempt to reinstate net neutrality rules, claiming the communications regulator did not have legal authority to bring back the open internet rules.

A three-judge panel in the Cincinnati-based sixth US circuit court of appeals said the Federal Communications Commission lacked authority to reinstate the rules initially implemented in 2015 by the Obama administration.

The net neutrality rules, which require internet service providers to treat internet data and users equally, were repealed by Donald Trump in 2017, before outgoing President Biden signed a 2021 executive order encouraging the FCC to reinstate the rules.

The court cited a June decision from the Supreme Court in Loper Bright to overturn a 1984 precedent that would give deference to government agencies in how they interpret laws they administer. The ruling leaves in place state net neutrality laws but is a blow to Democrat efforts to give federal regulators oversight of the internet.

Net-neutrality rules prevent ISPs from restricting access, slowing speeds or blocking content for certain users. The rules also forbid special arrangements in which ISPs give improved network speeds or access to favoured users, but the rules were opposed by Brendan Carr, who is set to become FCC chair when Trump comes to power later this month.

Following the ruling, sitting FCC chair Jessica Rosenworcel challenged Congress to act to “put open internet principles in federal law”.

She said: “Consumers across the country have told us again and again that they want an internet that is fast, open and fair. With this decision it is clear that Congress now needs to heed their call.”

USTelecom, an industry group whose members include AT&T and Verizon, said in a joint statement with other groups that sued that the ruling is “a victory for American consumers that will lead to more investment, innovation and competition in the dynamic digital marketplace”.

However, the FCC’s net neutrality rules received backing the likes of Amazon, Apple, Alphabet and Meta.