In the first major telecom ruling of the new year, the Sixth Circuit Court of Appeals on Thursday effectively struck down the Federal Communications Commission’s (FCC) ability to regulate broadband Internet service providers (ISP) under so-called network neutrality rules.
The rules effectively forced land-based and wireless broadband providers like Charter, Comcast, AT&T, Verizon and T-Mobile to treat all incoming and outgoing Internet traffic the same, and to not implement premium “fast lanes” that discriminated among websites and online services.
The net neutrality rules were first implemented during the Obama administration, only to be reversed by the FCC under the first Trump administration. Last April, the FCC reimplemented net neutrality rules in a 3-2 vote among commissioners that was along party lines, with the agency’s two Republican commissioners dissenting.
The reinstatement invited a challenge from telecoms and their public interest groups, who complained that the FCC lacked authority to regulate broadband and wireless ISPs as telecommunications services following the Supreme Court’s decision that effectively overturned the Chevron doctrine.
On Thursday, the Sixth Circuit appeals court agreed with the telecoms, finding that the FCC improperly regulated broadband and wireless ISPs as telecommunications services, when they really should have been relegated as information services.
Jessica Rosenworcel, the current chair of the FCC who is resigning later this month, issued a statement following the order that urged Congress to act on the matter.
“Consumers across the country have told us again and again that they want an internet that is fast, open and fair,” Rosenworcel said. “With this decision, it is clear that Congress now needs to heed their call, take up the charge for net neutrality and put open internet principles in federal law.”
On the other side, telecom advocacy groups are applauding the Sixth Circuit decision.
“Our fight to stop the government’s unwarranted internet takeover has resulted in a major victory for ACA Connects Members,” said Grant Spellmeyer, the President of ACA Connects, which represents small, medium-sized and rural area broadband ISPs and other telecommunications firms. “They can now strengthen their focus on offering people faster speeds, more affordable prices, and quality service without the threat of utility-style Federal regulations hampering their investments.”
