U.S. Court Rejects Net Neutrality Revival, Shifts Regulatory Authority to Congress

The Sixth Circuit Court of Appeals has denied the Biden administration’s attempt to restore net neutrality rules, concluding that the federal government lacks the authority to regulate internet providers like utilities. This ruling, which may signal an end to ongoing legal disputes, places the future of net neutrality in the hands of Congress, while prompting reactions from both consumer advocacy groups and industry representatives.

In a landmark decision, a U.S. court has ruled against the Biden administration's effort to reinstate net neutrality regulations, asserting that the federal government does not possess the legal authority to govern internet providers as public utilities. This ruling marks a considerable setback for advocates of an open internet who have campaigned for safeguards mandating equal treatment of all legal content by internet service providers (ISPs) such as AT&T.

The original net neutrality rules were put into place by the Federal Communications Commission (FCC) during Barack Obama's presidency and were subsequently dismantled during Donald Trump’s administration. With Trump gearing up for another term, this ruling probably concludes the longstanding legal battles surrounding the issue.

The judges' decision reflected on the historical ebb and flow of policy between administrations, stating, "the court no longer has to give 'deference' to the FCC’s interpretation of the law." This ruling aligns with a recent Supreme Court decision, believed by critics to potentially diminish regulatory oversight in the years to come. The FCC's power to interpret laws may face limitations as indicated by the Sixth Circuit Court of Appeals, culminating in a sentiment of relief from Brendan Carr, Trump’s recent FCC appointment and vocal opponent of Biden's proposal.

Jessica Rosenworcel, the outgoing Democratic commissioner of the FCC, emphasized the necessity for Congress to respond to consumer demand for a fair and open internet: "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."

The discourse on net neutrality had once gained intense momentum in the United States, notoriously energizing audiences and flooding comment sections when public figures, like comedian John Oliver, rallied support. Since the repeal in 2018, however, the issue has notably receded from national attention.

Despite the ruling not affecting state-level net neutrality legislation, advocates argue national regulations are crucial to safeguarding against ISPs potentially throttling content or imposing fees for faster service delivery. Public Knowledge, an organization advocating for consumer rights on internet policy, criticized the ruling for diminishing the FCC’s regulation capacity, labeling it as a threat to consumers and amplifying the influence of broadband providers.

Conversely, USTelecom, representing major industry players like AT&T and Verizon, heralded the decision as a triumph for American consumers, with expectations for increased investments, innovation, and competition within the evolving digital landscape.