A US appeals court ruled on Thursday that the Federal Communications Commission (FCC) does not have the legal authority to restore net neutrality rules. This decision is a setback for the Biden administration, which had made reinstating the open internet rules a priority.

President Joe Biden signed an executive order in 2021 urging the FCC to reinstate the rules.

The rules require internet service providers (ISPs) to treat internet data and users equally, prohibiting the blocking, throttling, or prioritizing of certain content.

They also prevent ISPs from offering faster speeds or improved access to favored users.

The court’s ruling follows the Supreme Court’s decision in the Loper Bright case in June, which overturned a 1984 precedent that allowed federal agencies to interpret laws they oversee. A three-judge panel of the Cincinnati-based 6th U.S.

Circuit Court of Appeals concluded that the FCC did not have the authority to reinstate the rules initially implemented in 2015 under former President Barack Obama, and repealed in 2017 under former President Donald Trump.

The decision leaves in place state-level neutrality rules adopted by states like California, but it may limit federal oversight over the internet.

FCC Chair Jessica Rosenworcel has called for Congress to act, urging lawmakers to take up net neutrality and enact it into law. Industry groups, including USTelecom, which represents companies like AT&T and Verizon, praised the ruling, arguing it would benefit consumers by promoting investment, innovation, and competition in the digital marketplace.

However, advocates for net neutrality have expressed concern, with some suggesting they may seek a review by the Supreme Court.

The decision ends the Biden administration’s efforts to reinstate the net neutrality rules but may also focus attention on improving internet access and fostering online innovation.