Sixth Circuit shoots down FCC's net neutrality rulesSixth Circuit shoots down FCC's net neutrality rules

The US Court of Appeals for the Sixth Circuit kicked off the new year by officially striking down the FCC's network neutrality rules, finding that broadband, including broadband delivered via mobile networks, is classified as an "information" service rather than a more heavily regulated "telecommunications" service. That important distinction means the FCC lacks the authority to impose the current set of rules, the court's three-judge panel found.

The ruling arrives about six months after the Sixth Circuit stayed the FCC's network neutrality rules, under current Chairwoman Jessica Rosenworcel, which aimed to resurrect broadband under a more heavily regulated Title II/telecommunications service classification. The FCC, under Rosenworcel, passed the current set of net neutrality rules in April 2024.

"Using 'the traditional tools of statutory construction' … we hold that Broadband Internet Service Providers offer only an 'information service' … and therefore, the FCC lacks the statutory authority to impose its desired net-neutrality policies through the 'telecommunications service' provision of the Communications Act," the Sixth Circuit said in its ruling.

The Sixth Circuit added that the Communications Act, likewise, prevents the FCC from imposing similar net-neutrality restrictions on mobile broadband services.

"[W]e conclude that Broadband Internet Service Providers at the very least offer consumers the 'capability' of 'retrieving' 'information via telecommunications'," the Sixth Circuit explained. "Accordingly, the FCC's contrary conclusion is unlawful."

The decision is another blow to an FCC that had fought for the rules to be reinstated under Rosenworcel and the outgoing Biden administration. The decision is a win for broadband service providers along with several organizations, including ACA Connects, CTIA, NCTA and USTelecom, that had argued against the rules, holding that the market has been thriving under a "light-touch regulatory framework."

Deregulatory shift

The Sixth Circuit ruling arrives ahead of the coming January 20 departure of current Chairwoman Rosenworcel, who was appointed by the Biden administration. Brendan Carr, a Republican Commissioner, was nominated to become the FCC's new chairman under the incoming Trump administration.

In a statement about the Sixth Circuit Court's decision, Rosenworcel said the onus is now on Congress to "take up the charge for net neutrality, and put open internet principles in federal law."

However, the ruling is likely just the start of a larger wave of deregulatory shifts that's expected to occur in 2025 and beyond with the new Trump administration.

"I think there is a big reset coming," Grant Spellmeyer, CEO of ACA Connects, told Light Reading late last year. Spellmeyer said he was confident that broadband operators would win the case at the Sixth Circuit. If they came up short, he expected that a future, fully seated FCC under Carr would move quickly to roll back the current net neutrality rules.

"Our fight to stop the government's unwarranted internet takeover has resulted in a major victory for ACA Connects Members," Spellmeyer said in a statement issued today.

Reactions pour in

Other reactions to Thursday's ruling were swift.

"We hope that today’s decision will allow for a refocused conversation about effective ways to achieve national goals with respect to broadband access," Mike Romano, EVP of NTCA – The Rural Broadband Association, said in a statement.

MoffettNathanson analyst Craig Moffett noted in an emailed statement to investors that the broadband market has been concerned that if the FCC had the authority to impose Title II reclassification, it could open the door for the Commission to impose broadband price regulation. "That risk is now put to bed," he noted.

Moffett noted that the decision was of little surprise after the FCC's ability to start enforcing the rules was delayed after the court put them on hold amid a review of the precedent set by the US Supreme Court's decision last June to strike down the decades-old Chevon deference (a.k.a. the Loper Bright) decision. That decision stands to limit the power and authority of federal agencies, such as the FCC, in interpreting certain laws that are considered ambiguous. Notably, Chevron has played a significant role over the years in establishing the FCC's authority to set and enforce network neutrality regulations.

"Indeed, the reason we and others stopped worrying about Title II was because it was clear that the judicial principle of Chevron Deference wasn't going to survive much longer," Moffett wrote.

Free Press, a long-time network neutrality advocate, argued that the court wrongly rejected the FCC's jurisdiction on the matter.

"Beyond being a disappointing outcome, today's 6th Circuit opinion is just plainly wrong at every level of analysis," Matt Wood, VP of policy and general counsel at Free Press, said in a statement. "Today's decision will let the incoming Trump FCC abdicate its responsibility to protect internet users against unscrupulous business practices ... It's rich to think of Donald Trump and Elon Musk's hand-picked FCC chairman characterizing light-touch broadband rules as heavy-handed regulation, while scheming to force carriage of viewpoints favorable to Trump on the nation's broadcast airwaves and social media sites."

Meanwhile, Carr cheered news of the ruling, calling it a "good win for the country."

"The court order invalidates one of the key pillars of President Biden's broader Internet power grab," Carr said in a statement.

Editor's note: This story has been updated with additional commentary and reaction to today's Sixth Circuit ruling.