The following appeared in a New York Times editorial:
In a discouraging ruling, a federal appeals court struck down regulations that prohibited phone and cable companies from charging different rates for delivering different types of content to consumers or even blocking certain content.
The U.S. Court of Appeals for the District of Columbia ruled the Federal Communications Commission exceeded its authority by imposing rules that barred Internet service providers from giving preferential treatment to some content.
The ruling could undermine the Internet's open nature. The court's decision turned on how the FCC classified broadband service, which has become a major telecommunications utility used by most Americans. The FCC called Internet an "information" service, which Congress has said can only be lightly regulated. Phone service is considered a "telecommunications" service and is closely regulated.
If this ruling stands, broadband providers would be free to strike deals with companies to pay to have their content streamed faster than or ahead of other content. Such deals would hurt small firms or startups.
Broadband was not always considered an information service. The FCC classified it as such during the Bush administration. The court has said the agency is free to change the classification if it explains why. The FCC said it will consider its options, including an appeal. Later it said it may intervene if broadband firms restrict content.
Broadband providers have said they have no intention of blocking traffic, but that could change. Ideally, Congress would pass a law prohibiting broadband companies from blocking content, but that is unlikely to happen given industry opposition. That's why it's important for the FCC to reclassify broadband as a telecommunications service.