Court upholds net neutrality rules for Internet access

U.S. decision requires providers to treat all web traffic equally

WASHINGTON— In a big win for the Obama administration, a U.S. federal appeals court has upheld the U.S. government’s “net neutrality” rules that require Internet providers to treat all traffic equally.

The 2-1 ruling Tuesday from the U.S. Court of Appeals for the District of Columbia Circuit is a victory for consumer groups and content companies such as Netflix that want to prevent online content from being blocked or channelled into fast and slow lanes.

The rules treat broadband service like a public utility and prevent Internet service providers from offering preferential treatment to sites that pay for faster service.

Consumers are not likely to see an immediate impact, since the rules have been in effect since last June.

But it could make some services more expensive or limit some content, such as T-Mobile’s Binge On service that allows customers to watch unlimited video free. The Federal Communications Commission argued that the rules are crucial for allowing customers to go anywhere on the Internet without a provider favouring its own service over that of other competitors.

The FCC’s move to reclassify broadband came after U.S. President Barack Obama publicly urged the commission to protect consumers by regulating Internet service as it does other public utilities.

The agency has tried for years to enforce net neutrality, but the same appeals court had twice previously struck down similar rules.

Cable and telecom opponents claim the rules prevent them from recovering costs for connecting to broadband hogs such as Netflix that generate a huge amount of Internet traffic. Providers such as Comcast, Verizon and AT&T say the rules threaten innovation and undermine investment in broadband infrastructure.

But judges David Tatel and Sri Srinivasan denied all challenges to the new rules, including claims that the FCC could not reclassify mobile broadband as a common carrier. That extends the reach of the new rules as more people view content on mobile devices.

The telecom industry had argued that broadband was an information service, and the FCC didn’t have the authority to change in which camp it fell. But the court ruled that the FCC was justified in reclassifying broadband as a telecom utility because consumers see broadband as a pipe for Internet service and a way to get online to use websites and apps.

“Given the tremendous impact thirdparty Internet content has had on our society, it would be hard to deny its dominance in the broadband experience,” the judges said.

“Over the past two decades, this content has transformed nearly every aspect of our lives, from profound actions like choosing a leader, building a career and falling in love to more quotidian ones like hailing a cab and watching a movie.

“The same assuredly cannot be said for broadband providers’ own add-on applications.”

Judge Stephen Williams dissented in part and said he would have struck down the rules.