On January 14, 2014, the DC Circuit Court of Appeals issued a decision rejecting key aspects of the FCC’s Net Neutrality rules issued in Docket 09-191 on December 21, 2010.  Specifically, the Court rejected the following provisions of the Order: 

No Blocking – A person engaged in the provision of fixed broadband Internet access service, insofar as such person is so engaged, shall not block lawful content, applications, services, or non-harmful devices, subject to reasonable network management

No Unreasonable Discrimination – A person engaged in the provision of fixed broadband Internet access service, insofar as such person is so engaged, shall not reasonably discriminate in transmitting lawful network management over a consumer’s broadband Internet access service. Reasonable network management shall not constitute unreasonable discrimination.   

As was expected, the Court found that the Commission went too far and did not have the authority under Title II of the 1934 Telecommunications Act to regulate broadband Internet service providers, which the Commission had previously classified as Information Service Providers as if they were common carriers.

However, the Commission did let the following provision stand, determining that it was not a common carrier requirement:

Transparency – Providers must disclose their network management practices, performance, and commercial terms of their broadband Internet access services sufficient for consumers to make informed choices regarding use of such services and for content, application, service, and device providers to develop, market and maintain Internet offerings.

Moreover, although the Court rejected the bulk of the Net Neutrality Rules, and remanding them back to the FCC for further review, the Court did provide the Commission some hope.  It indicated that section 706 the Advanced Services provision of the 1996 Act, does provide some justification for the Commission to regulate the Internet.  The Commission must do so however without relying on imposing common carrier requirements on Internet providers.  How and if the Commission will do so is yet to be determined.

Learn more about the FCC's Net Neutrality Decision in this on-demand webinar replay: