Nate Anderson | Washington | April 6

Ars Technica - The FCC's decision to sanction Comcast for its 2007 P2P blocking was overruled today by the US Court of Appeals for the DC Circuit. The question before the court was whether the FCC had the legal authority to "regulate an Internet service provider's network management practice." According to a three-judge panel, "the Commission has failed to make that showing" and the FCC's order against Comcast is tossed.

When the complaints against Comcast first surfaced, they noted that the company was violating the FCC's "Internet Policy Statement" drafted in 2005. That statement provided "four freedoms" to Internet users, including freedom from traffic discrimination apart from reasonable network management. The FCC decided that Comcast's actions had not been "reasonable network management," but Comcast took to the agency to court, arguing that the FCC had no right to regulate its network management practices at all.

The Internet Policy Statement was not a rule; instead, it was a set of guidelines, and even the statement admitted that the principles weren't legally enforceable. To sanction Comcast, the FCC relied on its "ancillary" jurisdiction to implement the authority that Congress gave it—but was this kind of network management ruling really within the FCC's remit?

The court held that it wasn't, that Congress had never given the agency the authority necessary to do this, and that the entire proceeding was illegitimate. The FCC's "Order" against Comcast is therefore vacated; Comcast wins.

New York Times, By Edward Wyatt, April 6

WASHINGTON — A federal appeals court on Tuesday dealt a sharp blow to the efforts of the Federal Communications Commission to set the rules of the road for the Internet, ruling that the agency lacks the authority to require broadband providers to give equal treatment to all Internet traffic flowing over their networks.

The decision [PDF], by the United States Court of Appeals for the District of Columbia Circuit, specifically concerned the efforts of Comcast, the nation’s largest cable provider, to slow down customers’ access to a service called BitTorrent, which is used to exchange large video files, most often pirated copies of movies.

After Comcast’s blocking was exposed, the F.C.C. told Comcast to stop discriminating against BitTorrent traffic and in 2008 issued broader rules for the industry regarding “net neutrality,” the principle that all Internet content should be treated equally by network providers. Comcast challenged the F.C.C.’s authority to issue such rules and argued that its throttling of BitTorrent was necessary to ensure that a few customers didn’t unfairly hog the capacity of the network, slowing down Internet access for all of its customers.

But Tuesday’s court ruling has far larger implications than just the Comcast case.