Equality on the Internet is dead.
On Tuesday, a federal appeals court opened the door for broadband service providers like Verizon and AT&T to charge certain content providers — like YouTube and Netflix — more to reach consumers.
In a unanimous ruling by the three-judge panel, the US Court of Appeals for the District of Columbia said that the Federal Communications Commission overstepped its bounds when it implemented a series of rules in 2010 forbidding broadband providers from blocking content or giving preferential treatment to one content provider over another.
The court’s ruling stems from a case brought by Verizon challenging the FCC’s authority to impose the rules. It upends the FCC’s years-long fight to impose so-called “net neutrality” on the Internet.
Consumer advocates warn that the ruling will lead to a Wild West online and open the door for broadband providers to pick and choose which content providers get faster and cleaner service.
But experts like Brett Sappington of research firm Parks Associates reject fears that broadband providers will begin to retaliate or block content for competitive reasons — lest they risk the ire of the FCC.
“That’s a concern, but I really doubt the FCC will allow that to happen,” Sappington said.
Stock-market reaction was muted for both the providers and the high-bandwidth users, as investors could not determine winners or losers yet.
Indeed, the appeals court ruling upheld the FCC’s right to regulate broadband providers’ treatment of Internet traffic — just not statutorily. To do that, the FCC would have to first change how broadband providers are classified, the court said.
The FCC is considering “all available options,” including appeal, “to ensure that these networks … provide a free and open platform for innovation and expression,” said FCC Chairman Thomas Wheeler.