Broadband Network Neutrality, Regulatory Measures on Pricing Eliminated Following Judicial Decision
A recent ruling by a United States appeals court has abolished the Biden Administration's net neutrality regulations, potentially signifying the final blow to long-standing attempts to regulate how broadband internet providers distribute equal access online and, consequently, the prices they charge for this service.
The Federal Communications Commission's capability to reintroduce net neutrality rules was challenged by the U.S. 6th District Court of Appeals, which leaned on a landmark Supreme Court decision in June that significantly narrowed the discretion and interpretative power of regulatory bodies attempting to enforce federal laws.
This decision likely marks the conclusion of a two-decade struggle that has aimed to redefine and thus govern the companies responsible for providing the high-speed internet 'pipes' used by consumers and businesses to connect online. The ruling also brings to a close an intense policy debate that originated in the early days of the publicly accessible internet and continued as it transitioned into a commercialized 'network of networks.'
A sequence of regulations were introduced and then repealed under various presidential administrations of both parties. The Biden Administration attempted to reestablish the rules that would have categorized broadband providers as 'telecommunications services' under Title II of federal laws, subjecting them to stricter regulation compared to their current classification as 'information services.'
However, the Biden Administration's efforts to reintroduce these regulations were thwarted by the appellate court's interpretation of the Loper Bright decision, which nullified the 'Chevron deference' approach used by courts to assess the legality of administrative regulations in accordance with Congressional intent.
According to the court, implementing the Loper Bright principle brings an end to the FCC's inconsistency in regulating net neutrality. The court further stated that the demise of the 'Chevron deference' provisions removes any deference to the FCC's interpretation of the law. Instead, courts must determine 'the best reading of the statute' themselves.
This case is likely just one of many federal regulations at the FCC and other agencies that will be challenged under Loper Bright, covering a range of subjects. Critics of the ruling have claimed that its abolition was expected.
Craig Moffett, co-founder of research firms MoffettNathanson, commented that the court's assertive language was not unexpected, as 'Chevron Deference' had been on its way out for some time. According to Moffett, this ruling concludes a lengthy and complex chapter for cable investors that began with the proposal to reclassify broadband providers in 2010.
The decision may have significant implications for not only broadband providers such as Verizon, AT&T, Charter, and Comcast, but also heavy internet traffic generators, like streaming services. Ultimately, consumers could be affected if broadband providers, no longer bound by the threat of regulations, decide to penalize or block certain companies using their networks.
Incoming FCC Chair Brendan Carr, a critic of net neutrality, expressed satisfaction with the decision, with an ex-aide stating that the opinion put an end to an issue that had dominated the tech and telecom industries for two decades.
Democrats and tech companies seeking to circumvent the court's decision and re-introduce net neutrality regulations could potentially turn to Congress, although the prospects for renewed legislative initiatives are uncertain in the near term.
The ruling by the U.S. 6th District Court of Appeals could lead to significant changes in the business strategies of heavy internet traffic generators, such as streaming services, as broadband providers may no longer be bound by net neutrality regulations. This decision might also spark discussions in Congress about reintroducing net neutrality regulations, providing an opportunity for Democrats and tech companies to influence the business landscape of the media sector.