US Appeals Court Blocks Biden Administration Effort to Restore Net-Neutrality Rules

A U.S. appeals court ruled on Thursday that the Federal Communications Commission (FCC) did not have the legal authority to reinstate net neutrality rules. This decision is a setback for the Biden administration, which had made restoring the open internet rules a priority. In 2021, President Joe Biden signed an executive order urging the FCC to reinstate the rules, which were originally implemented in 2015 under President Barack Obama, then repealed by President Donald Trump’s FCC in 2017.

The ruling by a three-judge panel from the 6th U.S. Circuit Court of Appeals, based in Cincinnati, stated that the FCC lacked the authority to reinstate the net neutrality rules. These rules require internet service providers (ISPs) to treat internet data and users equally, prohibiting them from slowing speeds, restricting access, or blocking content. The rules also prevent ISPs from offering improved speeds or access to favored users.

The court’s decision cited the Supreme Court’s June ruling in the Loper Bright case, which overturned a 1984 precedent that had previously granted deference to government agencies in interpreting laws. This decision curtails the power of federal agencies, including the FCC. The ruling keeps state-level neutrality rules, such as those in California, in place but may effectively end over 20 years of efforts to provide federal oversight over the internet.

FCC Chair Jessica Rosenworcel called for Congress to act, emphasizing that consumers have expressed the desire for a fast, open, and fair internet. “With this decision, it is clear that Congress needs to take up the charge for net neutrality and put open internet principles into federal law,” Rosenworcel said.

Incoming FCC Chair Brendan Carr, who had voted against reinstating the rules, celebrated the court’s decision, criticizing the Biden administration’s attempts to expand regulatory control over the internet. Industry groups, including USTelecom, which represents major ISPs like AT&T and Verizon, applauded the ruling, claiming it would benefit consumers by fostering more investment, innovation, and competition in the digital marketplace.