The 9th Circuit Court of Appeals, in a 3-0 ruling, rejected
a challenge from telecom and broad industry groups to block California's net
neutrality law, which aims to protect the open internet.
The panel's decision said since the FCC under former
President Donald Trump reclassified internet services as more lightly regulated
information services, the commission "no longer has the authority to
regulate in the same manner that it had when these services were classified as
telecommunications services."
A lower court judge refused to block California's net
neutrality law from taking effect after the Justice Department withdrew its
separate legal challenge to California's state law in February 2021.
California's 2018 law barred internet service providers from
blocking or throttling traffic, or offering paid fast lanes, but it only took
effect last year.
The appeals court said, "The stakes in this case are
high for the industry and consumers," and noted that without net
neutrality rules, internet providers could "open the door for
anticompetitive, discriminatory behavior that could disadvantage important
segments of society."
The industry groups that sued California included USTelecom,
wireless trade association CTIA, and the NCTA - The Internet & Television
Association, as well as internet providers including AT&T, Verizon and
Comcast.
They said in a joint statement Friday they were
"disappointed and will review our options. Once again, a piecemeal
approach to this issue is untenable and Congress should codify national rules
for an open Internet once and for all."
California Attorney General Rob Bonta said the decision
"will protect Californians from blocking, throttling, zero-rating, and
other anti-competitive practices."
The FCC under former President Barack Obama, a Democrat, had
adopted net neutrality rules in 2015. They were overturned in 2017 by the FCC
under Trump, a Republican. California's legislature responded by adopting a
state law requiring net neutrality in August 2018.
Supporters of net neutrality rules argue that the
protections ensure a free and open internet. Broadband and telecoms trade
groups contend their legal basis from the pre-internet era was outdated and
that they would discourage investment.
FCC Chair Jessica Rosenworcel said Friday that the decision
was "good news" and added the FCC needs "once again to make it
the law of the land."
Tom Johnson, who served as general counsel of the FCC during
the Trump administration, said the decision "creates confusion on whether
states can adopt policies that undermine the FCC's decision to repeal net
neutrality rules."
"Ultimately, he said, "the Supreme Court will have
to address the role of the states in this area."
The FCC remains divided 2-2. Democrats have been unable to
launch proceedings to reinstate net neutrality. A Senate committee is set to
vote next week on FCC commissioner nominee Gigi Sohn, a Democrat.
John Bergmayer, legal director at Public Knowledge, called
the decision "a major victory for internet users in California and
nationwide." © Reuters