Federal appeals court upholds California net neutrality law

A federal appeals court voted unanimously on Friday to uphold Californias SB-822 net neutrality law, reports The Verge. One year after the Federal Communications Commission repealed net neutrality rules that applied nationwide, the state passed its own set of laws. Those rules barred internet service providers from blocking, as well as throttling select websites and services. However, California could not begin enforcing those laws due to two separate legal challenges.

The first came from the Department of Justice. Under former President Donald Trump, the agency sued the state, arguing its laws were pre-empted by the FCCs repeal of the Obama-era Open Internet Order. In February 2021, the Justice Department dropped its complaint. Later that same month, a federal judge ruled in favor of the state in a separate lawsuit involving multiple telecom trade groups. This weeks ruling upholds that decision.

In its ruling, the Ninth Circuit Court of Appeals said the lower court correctly denied the preliminary injunction brought against California by the telecom industry. It said the FCC no longer has the authority to regulate internet services in the way that it did when it previously classified them as telecommunications services. The agency, therefore, cannot preempt state action, like SB-822, that protects net neutrality, the court said.

The four trade groups behind the original lawsuit the American Cable Association, CTIA, the National Cable and Telecommunications Association and USTelecom said they were disappointed by the decision and that they plan to review their options. Once again, a piecemeal approach to this issue is untenable and Congress should codify national rules for an open Internet once and for all, the groups told CNBC.

After months of stalemate at the FCC, federal action on net neutrality could come soon. Next week, the Senate Commerce Committee will decide whether to advance Gigi Sohns nomination to a full vote of the Senate. President Biden picked Sohn to fill the final empty commissioner seat on the FCC. Her confirmation would give Democrats a three to two edge on the FCC, allowing it to advance the presidents telecom-related policies.