Court Backs Rules Treating Internet as Utility, Not Luxury 125

By CECILIA KANG

JUNE 14, 2016

WASHINGTON — High-speed internet service can be defined as a utility, a federal court has ruled in a sweeping decision clearing the way for more rigorous policing of broadband providers and greater protections for web users.

The decision affirmed the government’s view that broadband is as essential as the phone and power and should be available to all Americans, rather than a luxury that does not need close government supervision.

The 2-to-1 decision from a three-judge panel at the United States Court of Appeals for the District of Columbia Circuit on Tuesday came in a case about rules applying to a doctrine known as net neutrality, which prohibit broadband companies from blocking or slowing the delivery of internet content to consumers.

Those rules, created by the Federal Communications Commission in early 2015, started a huge legal battle as cable, telecom and wireless internet providers sued to overturn regulations that they said went far beyond the F.C.C.’s authority and would hurt their businesses. On the other side, millions of consumers and giant tech firms rallied in favor of the regulations. President Obama also called for the strictest possible mandates on broadband providers.

The court’s decision upheld the F.C.C. on the declaration of broadband as a utility, which was the most significant aspect of the rules. That has broad-reaching implications for web and telecommunications companies that have battled for nearly a decade over the need for regulation to ensure web users get full and equal access to all content online.

“After a decade of debate and legal battles, today’s ruling affirms the commission’s ability to enforce the strongest possible internet protections — both on fixed and mobile networks — that will ensure the internet remains open, now and in the future,” Tom Wheeler, chairman of the F.C.C., said in a statement.

The two judges who ruled in favor of the F.C.C. emphasized the importance of the internet as an essential communications and information platform for consumers.

“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,” wrote David Tatel and Sri Srinivasan, the judges who wrote the opinion.

But the legal battle over the regulations is most likely far from over. The cable and telecom industries have signaled their intent to challenge any unfavorable decision, possibly taking the case to the Supreme Court.

AT&T immediately said it would continue to fight.

“We have always expected this issue to be decided by the Supreme Court and we look forward to participating in that appeal,” said David McAtee II, the senior executive vice president and general counsel for AT&T.

For now, the decision limits the ability of broadband providers like Comcast and Verizon to shape the experience of internet users. Without net neutrality rules, the broadband providers could be inclined to deliver certain content on the web at slower speeds, for example, making the streams on Netflix or YouTube buffer or shut down. Such business decisions by broadband providers would have created fast and slow lanes on the internet, subjecting businesses and consumers to extra charges and limited access to content online, the F.C.C. has argued.

“This is an enormous win for consumers,” said Gene Kimmelman, president of the public interest group Public Knowledge. “It ensures the right to an open internet with no gatekeepers.”