Comcast was handed a victory Tuesday when an appeals court ruled that the Federal Communications Commission did not have the authority to hand down a 2008 network management enforcement action against Comcast; a move that set off today’s current debate over net neutrality.
“Because the commission has failed to tie its assertion of ancillary authority over Comcast’s Internet service to any ‘statutorily mandated responsibility,’ … we grant the petition for review and vacate the order,” the court wrote in a Tuesday ruling.
The U.S. Court of Appeals for D.C. essentially said that there is no law on the books that gives the FCC the right to hand down penalties regarding an ISP’s network management practices. The FCC had argued that its Internet Policy Principles–a set of four principles the commission developed itself in 2005 that serve as a framework for broadband Internet access–were enough to give it the authority to address the issue, but the appeals court disagreed.
The issue dates back to 2007, when Comcast was accused of blocking access to peer-to-peer sites like BitTorrent. Comcast admitted to delaying traffic during peak times, but denied ever blocking traffic. Interest groups like Free Press and Public Knowledge, however, filed a complaint with the FCC, as did some peer-to-peer companies. In August 2008, the FCC–under former chairman Kevin Martin–handed down an enforcement action against Comcast, which required the company to be more transparent about its network management policies.
Comcast complied with that requirement, but filed an appeal because, it argued, the FCC did not have the authority to hand down an action on this topic because its Internet Policy Principles were developed internally at the FCC and did not go through any formal rulemaking procedure that would make them formal FCC rules.
As a result, Comcast argued, these principles hold no weight. On Tuesday, the appeals court agreed with Comcast’s argument.
‘Policy statements are just that – statements of policy. They are not delegations of regulatory authority,” the three-judge panel wrote in their decision.