A three-judge panel of the U.S. Court of Appeals in Washington, DC, has ruled the Federal Communications Commission lacks the authority to impose Net neutrality regulations on Internet providers and operators of broadband networks.
The unanimous finding overturned the FCC's cease and desist order against Comcast, which had imposed measures to slow traffic to what it considered heavy users. The Court said the FCC, in issuing the order, failed to cite any specific law passed by Congress. In effect, the judges found that the federal agency could not impose restraints on Internet providers without the backing of Congress.
The decision, at first glance, would appear to be a severe setback to FCC Chairman Julius Genachowski's goal of enacting a sweeping Net neutrality policy covering the entire Internet. However, if Congress passes legislation upholding the Net neutrality principle, presumably the policy would pass legal muster.
Net neutrality refers to the principle that Internet content providers should have equal access to the Internet should suffer no restrictions on content, sites or platforms that may be attached. Network operators, such as AT&T, have objected to that principle, saying they have borne the cost of building and maintaining the network and should be allowed to control the amount of traffic traveling through it.
Outlook uncertain
The outlook for Congressional action is somewhat uncertain. In 2006 Congress rejected a number of bills that would have granted the FCC more power to enforce Net neutrality policies. But at the time, Republicans controlled Congress.
Will it be any different now that the Democrats are in charge? Democrats have been in control for three years and so far, Net neutrality legislation remains stalled.
President Obama has consistently supported Net neutrality and his choice of Genachowski to head the FCC was seen as an additional statement of support, since Genachowski was known to be a strong proponent of the concept.
Before becoming Chairman of the FCC, Genachowski was a co-founder of LaunchBox Digital and Rock Creek Ventures. He worked as an executive at IAC/InterActiveCorp, with owns several major Web sites.