• A US appeals court ruled that the Federal Communications Commission (FCC) lacked the authority to reinstate net neutrality rules.
• The ruling is a significant setback for President Biden, who aimed to restore regulations initially implemented under President Obama.
• Net neutrality would ensure that internet service providers treat all data equally, without prioritizing paid services or blocking access.
• The court's decision referenced the Supreme Court's ruling in Loper Bright, limiting federal agency power in rule-making.
• FCC Chair Jessica Rosenworcel has called for Congress to legislate net neutrality principles directly into federal law.

A recent ruling by a US appeals court has blocked the Biden administration's efforts to restore net neutrality rules, a move that significantly impacts the regulation of internet services across the United States. The three-judge panel from the Cincinnati-based 6th Circuit Court of Appeals determined that the Federal Communications Commission (FCC) did not have the legal authority to reinstate these landmark rules, initially established under President Barack Obama in 2015 and repealed by the Trump administration in 2017. The decision is seen as a setback for President Biden, who had prioritized net neutrality by signing an executive order in 2021 encouraging the FCC to act. The rationale behind net neutrality is to mandate that internet service providers (ISPs) treat all web traffic the same, prohibiting slower speeds or blocked access based on a user's payment status. Critics of the ruling, including FCC Chair Jessica Rosenworcel, expressed disappointment, urging Congress to take immediate action to cement net neutrality principles into federal law, stating, "Consumers across the country have told us again and again that they want an internet that is fast, open, and fair." The court's opinion leaned heavily on the recent Supreme Court ruling in the Loper Bright case, which limited the ability of federal agencies to create regulations beyond the scope of direct legislative authority. Brendan Carr, a Republican FCC chair, welcomed the ruling, suggesting it halted what he referred to as the Biden administration's "internet power grab." In contrast, advocates for net neutrality claim that the absence of these regulations will lead to a tiered internet, favoring wealthier users who can afford to pay for faster access. While the federal effort to restore such rules encounters significant obstacles, some states, including California and Colorado, still maintain their net neutrality regulations. Given the current political climate, with a Republican majority expected in Congress, the likelihood of new federal net neutrality legislation passing anytime soon appears slim. The implications of this ruling will continue to unfold as consumers and industry groups alike react to the changing landscape of internet access and regulations.

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