Reinstatement of net neutrality rules blocked by US courts

The US Federal Communications Commission (FCC) on Thursday lost its appeal to reinstate net neutrality rules that would protect consumers from unequal data speeds and access from broadband providers.

A US appeals court blocked the FCC’s bid to reinstate the landmark net neutrality rules, saying broadband providers are likely to succeed in a legal challenge.

FCC Chair Jessica Rosenworcel said: “The American public wants an internet that is fast, open, and fair. Today’s decision by the Sixth Circuit is a setback but we will not give up the fight for net neutrality.”

Rosenworcel led a vote in April along party lines to restore the agency’s regulatory oversight and reinstate the open internet rules, which prevent broadband providers from blocking or slowing down internet traffic to certain websites and applications.

The rules also require internet service providers (ISP) to treat internet data and users equally, for example engaging in paid prioritization or specialized deals that would give better network speeds or access to favored users.

The Sixth Circuit US Court of Appeals said on Thursday it would temporarily block net neutrality rules and scheduled oral arguments for late October or early November on the issue.

"The final rule implicates a major question, and the commission has failed to satisfy the high bar for imposing such regulations," the court wrote in its decision.

"Net neutrality is likely a major question requiring clear congressional authorization," it said.

The decision is seen as a serious blow to President Joe Biden, who had championed bringing back the rules since coming into office.

In 2021, only months into his first year as President, Biden signed an executive order encouraging the FCC to establish the FCC oversight.

The net neutrality rules were adopted in 2015 by then-President Barack Obama, and subsequently rescinded during the Trump administration.

On July 12th, the appeals court had temporarily placed the rules on hold until August 5th to consider industry legal challenges.

Reinstating the rules will also give the FCC new tools to crack down on Chinese telecom companies as well as the ability to monitor internet service outages.

Under Trump, the FCC had argued that net neutrality rules were unnecessary, blocked innovation, and resulted in a decline in network investment by internet service providers, a contention disputed by Democrats.