On Thursday, the U.S. Court of Appeals for the 6th Circuit struck down the Federal Communications Commission's net neutrality rules.

What Happened: This decision represents a major policy win for Republicans and poses a challenge to the Joe Biden administration's internet regulation agenda.

Democrats have been advocating for stricter controls akin to those on traditional telephone networks, while Republicans favor a more relaxed approach.

The 6th Circuit judges referenced a Supreme Court ruling from June that struck down the Chevron deference principle, enabling them to question the FCC's authority. Chevron deference refers to the flexibility federal judges grant agencies in interpreting the statutes they oversee when disputes occur.

The court argued that internet service providers are not simply "dumb pipes" and should not be regulated like utilities.

FCC chairwoman Jessica Rosenworcel has called on Congress to legislate open internet principles.

Brendan Carr, President-elect Donald Trump-appointed FCC chairman, praised the court's decision and promised further deregulatory actions.

"The work to unwind the Biden Administration's regulatory overreach will continue," he said, reported The Washington Post.

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Why It Matters: Net neutrality is based on the principle that internet service providers like Comcast Corporation (NASDAQ:CMCSA), AT&T Inc. (NYSE:T), and Verizon Communications (NYSE:VZ) are required to treat all internet traffic equally, ensuring uniform speed and access, no matter which company is behind the content.

Supporters of net neutrality argue that these rules are crucial to prevent internet service providers from abusing their power, such as throttling access to certain websites.

Critics, however, say there's little evidence of such discrimination and warn that increased regulation could hinder innovation.

Previously, the Computer & Communications Industry Association, which counts Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), and Meta Platforms, Inc. (NASDAQ:META) among its members, supported the reinstatement of the rules, stating that they are necessary to maintain open internet access.

Price Action: According to data from Benzinga Pro, Comcast's stock dropped 0.29% on Thursday, while AT&T rose by 0.26% and Verizon increased by 0.55%.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.