Biden FCC Net-Neutrality Rules Effort Blocked by US Appeals Court

A federal appeals court has blocked the Federal Communications Commission from reinstating net-neutrality rules. Net neutrality means forcing tech companies to provide the same internet speed for everyone and not impose premium class-style services that offer higher speeds for those willing to pay more. Why It Matters Internet providers have long opposed net neutrality, saying that it prevents them from investing in much faster internet systems that will eventually benefit everyone. However, consumer groups say that, without these rules, internet companies will create a multi-tier system, with the wealthiest in society having the best service. Nancy Pelosi, then speaker of the House, during an event to announce net-neutrality legislation at the Capitol in March 2019. A federal appeal court has struck down a Biden administration attempt to introduce net neutrality… Nancy Pelosi, then speaker of the House, during an event to announce net-neutrality legislation at the Capitol in March 2019. A federal appeal court has struck down a Biden administration attempt to introduce net neutrality by executive order. Mandel Ngan/Getty Images What To Know The FCC introduced net-neutrality rules under President Barack Obama’s administration but those rules were scrapped by President Donald Trump in 2017. President Joe Biden then signed a 2021 executive order that told the FCC to reinstate the rules. Newsweek sought email comment on Friday from the FCC and the Trump transition team. What Are The Net-Neutrality Rules? The Obama/Biden rules covered three main areas: Blocking: Internet companies could not earn extra revenue by blocking websites or apps at the request of competitors. Throttling: Internet companies could not slow the internet speed of legal websites as this could be used for unfair competition. Paid Prioritization: Internet companies could not provide premium services with faster internet speed for those willing to pay more. A three-judge federal appeal court in Cincinnati ruled on Thursday that the FCC has no legal right to reinstate the net neutrality rules. Why Has The Court Blocked The Move? The court relied heavily on the Supreme Court’s 2024 decision in Loper Bright, which determined that federal agencies have no right to set rules not contained in legislation. The Loper Bright decision effectively ended the so-called Chevron Defense, in which federal agencies had greater legal standing to interpret legislation. The ruling is a victory for Donald Trump as he prepares for his inauguration on January 20. He has long opposed net neutrality as an impediment to free trade. Do Any Countries Have Net Neutrality? According to the World Population Review website, the European Union has some net-neutrality protection. Other countries do not enforce their legislation, such as Australia, Argentina, Chile and Singapore. Russia has partial rules on net neutrality. What People Are Saying The Cincinnati court criticized the FCC for its lack of clear guidance on the issue and offered a hint of sarcasm in its ruling. “Applying Loper Bright means we can end the FCC’s vacillations,” it ruled. Brendan Carr, Trump’s pick for FCC chair, warmly welcomed the Cincinnati court’s decision and said the court had stopped the Biden administration’s “internet power grab.” Read more “While the work to unwind the Biden Admin’s regulatory overreach will continue, this is a good win,” Carr wrote on X, formerly Twitter, on Thursday. The current FCC chair, Jessica Rosenworcel, said in a statement that the ruling was bad news for average Americans. She called on Congress to pass definite legislation on net neutrality that cannot be overruled by the courts. “Consumers across the country have told us again and again that they want an internet that is fast, open and fair. 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,” Rosenworcel said. Nancy Pelosi, House speaker at the time, and Senate Democrat leader Chuck Schumer attempted to introduce net-neutrality legislation in 2019. What Happens Next There are still net-neutrality rules in some states, such as California, Colorado and Washington, which are not affected by the federal court’s decision. However, with a Republican majority in both the House and Senate, and Donald Trump in the White House, it is highly unlikely that federal net-neutrality laws will be passed in the near future.