A U.S. federal court upheld the FCC's 2017 decision to eliminate net neutrality rules while simultaneously blocking the commission's attempt to prevent states from implementing their own net neutrality regulations.

The D.C. Circuit Court of Appeals found arguments from net neutrality supporters "unconvincing" and largely affirmed the actions of FCC Chairman Ajit Pai. However, the court ruled that the FCC must revise certain aspects of its neutrality repeal.

Significantly, the court overturned the FCC's Preemption Directive, which attempted to block states from adopting their own net neutrality rules. The ruling stated that the FCC "ignored binding precedent" and lacked legal authority to prevent state-level statutes.

This decision means the FCC must now challenge each state's net neutrality laws individually, rather than implementing a blanket ban. States like California, which implemented its own net neutrality rules in 2018, can now potentially maintain their regulations, though they may face individual legal challenges.

Digital advocacy group Fight for the Future views this as an opportunity to restore net neutrality state by state, citing California's bipartisan-supported protections as a model for other states.

While FCC Chairman Pai welcomed the ruling as a victory against "1930s utility-style regulation of the Internet," opponents maintain their stance. Democratic FCC Commissioner Jessica Rosenworcel criticized the original repeal, stating that the FCC was on the "wrong side of the law" and pledging to continue the fight for net neutrality at local, state, and federal levels.

The decision sets the stage for ongoing battles over internet regulation, with states now having a clearer path to implement their own net neutrality protections while the FCC maintains its deregulatory stance at the federal level.

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