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Net neutrality's definitive demise deals a significant setback for Democrats

On Thursday, a U.S. appellate court determined that the Federal Communications Commission lacked the legal power to revive pivotal net neutrality regulations.

The head of the U.S. Federal Communications Commission, namely Jessica Rosenworcel, holds that...
The head of the U.S. Federal Communications Commission, namely Jessica Rosenworcel, holds that position.

Net neutrality's definitive demise deals a significant setback for Democrats

The verdict is a setback for the departing Biden administration, which had made reviving internet regulations a key focus. President Joe Biden signed a 2021 order encouraging the FCC to reinstate these regulations.

A three-judge panel from the Cincinnati-based 6th U.S. Circuit Court of Appeals ruled that the FCC didn't have the power to restore the rules originally established in 2015 under Democratic President Barack Obama. These rules were then abolished in 2017 by the commission under Republican President Donald Trump.

Net-neutrality regulations require internet service providers to handle internet data and users equally, without limiting access, slowing speeds, or blocking content for specific users. These rules also prohibit special arrangements that provide improved network speeds or access to preferred users.

The court referred to the Supreme Court's June ruling in the Loper Bright case to overturn a 1984 precedent that had given agencies leeway in interpreting the laws they govern. This is the latest decision to curb the power of federal agencies.

The decision kept state neutrality regulations in place, like those adopted by California and others, but could end over two decades of attempts to provide federal agencies with broad internet regulatory control.

FCC Commissioner Brendan Carr, who voted against the reinstatement last year, praised the decision to nullify what he called Biden's "internet power grab." He vowed to annul additional regulations.

FCC Chair Jessica Rosenworcel urged Congress to intervene after the decision. "Consumers nationwide have repeatedly expressed their desire for a fast, fair, and open internet. With this decision, it's clear that Congress now needs to act, address the call for net neutrality, and enshrine open internet principles in federal law," Rosenworcel said.

The FCC voted in April, along party lines, to resume control of broadband internet regulation and reinstate net-neutrality rules. Industry groups challenged this and had the court temporarily halt the rules while they considered the case.

USTelecom, an industry group representing companies like AT&T and Verizon, celebrated the ruling as a "victory for American consumers" that would stimulate investment, innovation, and competition in the digital marketplace.

Former FCC Chair Ajit Pai suggested the court ruling might mean an end to attempts to restore the rules, and a shift in focus to "issues that truly matter to American consumers - like enhancing internet access and fostering online innovation."

The Trump administration is unlikely to appeal the decision, but net-neutrality supporters could petition the Supreme Court for review.

The rules could have given the FCC increased power to address Chinese telecom companies and monitor internet service outages.

A group backed by companies such as Amazon.com, Apple, Alphabet, and Meta Platforms had supported the FCC's net-neutrality rules.

The court's June ruling in the Loper Bright case served as a basis for rejecting the FCC's efforts to revive net-neutrality regulations, marking a significant blow to the tech-focused business agenda of the Biden administration.

Despite the court's decision, the state-level net-neutrality regulations, including those in California, remain intact, maintaining a level playing field for tech businesses operating within these jurisdictions.

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