US appeals court backs Obama on net neutrality

A federal court upheld net-neutrality regulations designed to ensure an open internet, handing a victory to the Obama administration and a defeat to telephone and cable providers.

The Washington-based US Court of Appeals Tuesday acted after a decade of debate over web access that pitted Silicon Valley against companies that provide internet access to homes and businesses.

The court likened internet service providers to utilities, saying they “act as neutral, indiscriminate platforms for transmission of speech”.

The ruling is a triumph for the Federal Communications Commission’s Democratic majority that passed the rules last year. It is a win for Alphabet’s Google, online video provider Netflix and others who championed the notion of an open internet where internet service providers are prevented from offering speedier lanes to those willing to pay extra for them.

“The open internet rules are here to stay,” Pantelis Michalopoulos, an attorney who represented Netflix and Dish Network in the case, said. “There is no doubt who is the winner: the open internet. The gatekeepers may not block or throttle our information. They may not ask information to pay tolls.”

Challengers including AT&T, Verizon Communications and Comcast said the rule would discourage innovation and investment. AT&T said it would appeal to the US Supreme Court.

The three-judge appellate panel heard arguments last December. US circuit judges David Tatel and Sri Srinivasan voted to uphold the FCC. Judge Stephen Williams dissented, saying the FCC ignored market conditions.

“Today’s ruling is a victory for consumers and innovators who deserve unfettered access to the entire web,” FCC chairman Tom Wheeler, who led the agency to a 3-2 Democratic-led vote to pass the rules, said in an e-mailed statement. “It ensures the internet remains a platform for unparalleled innovation, free expression and economic growth.”

President Barack Obama backed the rules.

Democratic Presidential candidate Bernie Sanders in a Tweet said that, “Today’s decision will help ensure we don’t turn over our democracy to the highest bidder.”

“We have always expected this issue to be decided by the Supreme Court, and we look forward to participating in that appeal,” David McAtee, AT&T’s general counsel, said.

The wireless industry “will pursue judicial and congressional options to ensure a regulatory framework that provides certainty for consumers, investors and innovators”, Meredith Attwell Baker, president of CTIA, a trade group with members including AT&T and Verizon, said.

The National Cable and Telecommunications Association, with members including top US cable provider Comcast and Charter Communications, said it was reviewing the decision.

The decision comes as AT&T, Comcast and T-Mobile US face regulatory scrutiny for offering customers free data for viewing certain web videos, raising concerns as to whether they’re indeed treating all content equally.

The notion behind the FCC measure, that broadband service providers must treat all content the same, had the support of the Obama administration as well as Twitter, the American Civil Liberties Union and other interest groups. – Bloomberg