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The U.S. Court of Appeals for the D.C. Circuit gave the Obama administration a victory today in the battle over the FCC’s “net neutrality” rules. Last year, the FCC promulgated rules designed to prevent the major Internet service providers (the major telecom carriers such as Comcast, Verizon and AT&T) from applying “paid prioritization” plans,  schemes by which the ISPs charge content providers (Netflix, Amazon, Google, et al) higher rates for faster service. In addition, the FCC prohibited the carriers from slowing the service of content providers who could not or would not pay the higher rates. Most significantly, the rules treated wireless data (cellphones) the same as wired (land-line) access such as telephone (DSL) and broadband (cable).  The FCC was able to enact the rules after classifying internet service as a “telecommunication service” pursuant to the Communications Act of 1934, essentially making internet service a public utility in the same way as the public telephone network has been. Previously, the Bush administration’s FCC under Chairman Michael Powell (now a cable industry lobbyist) had classified internet service as a “data service”, not subject to the same level of regulation as telecommunication carriers.

The carriers immediately let loose a legal barrage, sueing to get the rules overturned on the grounds that the FCC has exceeded its mandated authority. They argued- publicly, at least- that they were committed to an “open internet” and that the rules would stifle innovation and investment on their part. What they did not state was that, since they are content providers themselves, they could no longer give their own content preferential service in competing with their non-ISP customers.

Today’s court decision means the rules stand. In a meaningful way, it represents “a victory for consumers and innovators who deserve unfettered access to the entire web, and it ensures the internet remains a platform for unparalleled innovation, free expression and economic growth,” FCC Chairman Tom Wheeler said in a statement. For the time being, the oligopoly of mega ISPs  has been thwarted.

The carriers could still take their appeal to the Supreme Court. However, with Merritt Garland’s nomination to fill the late Antonin Scalia’s seat having been placed in suspended animation by recalcitrant Republican Senators, the likely 4-4 split before the land’s highest court means the 2nd Circuit’s decision would stand. The telecomm godzillas will doubtless resort to the tried-and-true approach of throwing money at Congress with a large-caliber lobbying effort.

In the meantime, you and I get to enjoy Netflix’s offerings for an affordable price, or maybe start a business that makes use of the Internet to provide a unique service.

(This post cites information from an article in today's Huffington Post.)