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Net neutrality suffers a blow in the courts,
but is this the end for free and open internet?
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Hi, this is Annie filling in for DNews.
On Tuesday, a US Court of Appeals
ruled against the Federal Communications Commission
in a decision that voided much of the FCC's existing
net neutrality rules.
The ruling was the result of a suit filed
by Verizon who charged that the FCC's neutrality rules violated
their First and Fifth Amendment rights.
Those rules, which the FCC put in place in 2010,
dictate a few things.
Basically ISPs can't discriminate
against certain types of traffic,
can't block any lawful content, and should
be open and transparent with customers
with how they manage their traffic.
But in this decision, the court rejected those rules
on the grounds that, quote, "The commission
failed to establish that the anti-discrimination and anti
blocking rules do not impose, per se,
common carrier obligations."
Common carriage is a legal concept
that informs the regulation of traditional telecom companies.
In 2002, though, the FCC classified
ISPs as information services rather than
telecoms, which weakened the relevance of common carrier
principles as a framework in this case.
What does this all mean though?
Basically, this decision would allow broadband providers
much more freedom in creating new pricing
models for internet, and to strike deals
with internet companies or content providers
deliver their content more readily to consumers.
We don't know yet how a ruling like this
would shake out in deals among the ISPs, internet companies,
and content providers, and then trickle down to us consumers,
but one possible scenario is tiered internet service
where ISPs could charge more to companies
like Netflix or Google to deliver their traffic faster.
Together, just those two companies make up over half
of all internet traffic, according
to one study by the firm Sandvine in 2013.
But advocates for net neutrality say that pricing environment
will hamper innovation, in effect killing
the current open atmosphere, where anyone with an idea
can build it online at relatively low cost.
And more broadly, some are worried that the decision could
give broadband companies too much power in deciding
what content is freely available.
I don't think too many of us are in love
with the idea of Verizon choosing what we can see,
but does this mean that net neutrality is dead?
Not exactly.
FCC chairman Tom Wheeler pointed out in a blog post
that the court's decision did concede that the FCC has
the authority and the responsibility
to regulate the activities of broadband networks.
In other words, the court rejected
the framework offered by the FCC,
but not the idea that they can regulate internet providers.
Someone just has to come up with a better framework
for regulating the uncharted territory that is the internet.
And the FCC says they might appeal
the ruling, in which case it could end up
in the Supreme Court.
But either way, the battle isn't over, so let us know your take.
Will this decision be bad for consumers?
As always, you can weigh in with us
on Twitter or Facebook, @DNews, and you
can ping me as well, @AnnieGaus.
Thanks for watching.