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Opponents warn heavy-handed regulation will stifle investment, innovation.
A U.S. appeals court on Tuesday upheld the Federal Communications Commission’s (FCC’s) net neutrality rules, dealing a blow to telcos that argue the regulator has overstepped the bounds of its authority.
"Today’s ruling is a victory for consumers and innovators who deserve unfettered access to the entire Web, and it ensures the Internet remains a platform for unparalleled innovation, free expression and economic growth," said FCC chairman Tom Wheeler, in a statement.
Unsurprisingly, those on the losing side feel differently.
The court has "unfortunately failed to recognise the significant legal failings of the Federal Communications Commission’s decision to regulate the Internet as a public utility, leaving in place regulation we believe will replace a consumer-driver Internet with a government-run Internet, threatening investment and innovation in years to come," said Walter McCormick, president of telco lobby group USTelecom, which led the opposition to the new rules.
Adopted in February, the Open Internet Order reclassified broadband as a telecommunication service rather than an information service, subjecting it to regulation under Title II of the Communications Act. It prevents broadband providers from blocking access to legal content, applications, and services. ‘Non-harmful’ devices must also not be prevented from connecting to networks.
Broadband providers are also banned from degrading the performance of Internet services on the basis of content, application or service. Paid prioritisation is also not allowed; however, the rules do permit service providers to carry out reasonable traffic management to ensure their networks run smoothly.
Opponents of the rules took the FCC to court, arguing that while they support the principles of the open Internet, the watchdog’s decision to regulate the Internet under Title II was arbitrary, capricious and an abuse of discretion.
However, a three-judge panel at the United States Court of Appeals for the D.C. Circuit on Tuesday sided with the FCC.
"After a decade of debate and legal battles, today’s ruling affirms the Commission’s ability to enforce the strongest possible Internet protections – both on fixed and mobile networks – that will ensure the Internet remains open, now and in the future," Wheeler said.
"Our industry strongly supports open Internet principles and the FCC’s order is wholly unnecessary to keeping the Internet open. We will continue to work toward policies that facilitate America’s broadband leadership, are reviewing the court’s decision, and will be evaluating all of our legal options," McCormick said.
