The 6th U.S. Circuit Court of Appeals has struck down the Federal Communications Commission's (FCC) net neutrality rules in a major decision that impacts how internet service providers can manage web traffic.
The court ruled that the FCC lacks the legal authority to classify broadband providers as "telecommunications services" under federal law, which was the basis for implementing net neutrality regulations. These rules required internet service providers to treat all web traffic equally and prohibited them from creating "fast lanes" or "slow lanes" based on payment.
The three-judge panel cited last year's Supreme Court decision in Loper Bright Enterprises v. Raimondo, which eliminated the longstanding practice of giving federal agencies broad discretion in interpreting laws they enforce. The court determined that broadband must be classified as an "information service" rather than a telecommunications service, limiting the FCC's regulatory power.
FCC Chairwoman Jessica Rosenworcel responded that the decision makes clear that Congress needs to take action. "Consumers across the country have told us again and again that they want an internet that is fast, open and fair," she said, calling for lawmakers to "put open internet principles in federal law."
The ruling marks another chapter in the back-and-forth battle over net neutrality regulations, which were first implemented under President Obama, reversed during the Trump administration, and reinstated under President Biden. Industry groups that challenged the rules praised the decision, saying it will promote investment and innovation in digital markets.
Net neutrality advocates argue the rules are necessary to prevent service providers from unfairly manipulating internet speeds. However, opponents contend that the broadband market functions well without such regulations and that government intervention is unnecessary.
The decision effectively blocks the FCC's latest attempt to impose net neutrality requirements unless Congress passes new legislation explicitly granting the agency such authority.