Court Blocks Federal Communications Commission from Restoring Net Neutrality Rules

On Thursday, a US appeals court temporarily blocked the Federal Communications Commission (FCC) from reinstating the Obama-era net neutrality rules that aimed to reclassify broadband internet. The court believed that several broadband companies’ legal challenge to the reinstatement of FCC rules may likely succeed, as these rules would classify broadband internet providers as common carriers and subject them to increased regulatory requirements.

The US Court of Appeals for the Sixth Circuit ruled that the FCC’s rules raised “significant issues” but “failed to satisfy the high standard required for implementing such regulations.” The court stated in its ruling that “net neutrality is likely a significant issue that would need explicit authorization from Congress.”

The court emphasized that broadband services are crucial to modern life, facilitating employment, education, healthcare, commerce, community development, communication, and free expression, not to mention the importance of broadband to national security and public safety.

The court concluded that since broadband providers have shown potential for winning the case, and the stock market also supported them, they approved the stay of the FCC rules’ enforcement. Oral arguments on the matter have been scheduled for October 28 and November 1.

In April of this year, the FCC reclassified internet access service under Title II of the 1934 Communications Act through a partisan vote, a move that effectively reinstated the net neutrality rules implemented during the Obama administration in 2015, repealed during the presidency of Donald Trump.

Under the reclassification, broadband providers are treated as essential services and are subject to stricter scrutiny. This reclassification prohibits broadband providers from limiting user access to the internet, throttling speeds, blocking content for certain users, or providing preferential treatment to favored customers.

The FCC’s rules also authorize the commission to revoke the authorization of foreign entities deemed a “threat to national security” from operating broadband networks in the US.

According to the Federal Trade Commission (FTC), these rules enable the commission to exercise its authority over broadband in a narrow manner to promote continued innovation and investment without engaging in rate regulation, imposing tariffs, or breaking up entities.

When announcing the reclassification in April, the FCC stated that it would ensure the internet is “fast, open, and fair” and allow the agency to “protect consumers, safeguard national security, and promote public safety.”

The rules were initially set to take effect on July 22. However, the US Court of Appeals for the Sixth Circuit postponed the net neutrality rules until August 5 last month and also considered motions from several broadband companies seeking to temporarily halt the rules’ implementation.

In their petition to the court, the broadband companies argued that the FCC “once again claims unchecked authority over how Americans access the internet” and criticized the agency for passing “more aggressive rules than in 2015.”

These companies further argued that the FCC rules would grant the commission the power to “set prices, dictate terms and conditions, require or prohibit investments or divestments, and more.”

These companies stated that “this seismic assertion of (the commission’s) power reaches major issues principles, which should be indisputable.”

Restoring net neutrality has been a key priority during President Joe Biden’s administration. In July 2021, the Democratic president signed an executive order encouraging the FCC to reinstate the rules passed by the Obama administration in 2015.

“Dajiyuan Times” has reached out to the Federal Communications Commission for comment.