Supporters of net neutrality suffered a setback in the US after a court of appeals in Washington DC ruled that the FCC does not have the authority to regulate ISPs' traffic management. Cable operator Comcast filed the suit against the Federal Communication Commission, challenging a regultory order from August 2008 limiting the ability of the ISP to manage traffic on its network. The FCC had censured Comcast for blocking subscribers using peer-to-peer software. Comcast said it was "gratified" by the court's decision to vacate the FCC order and said it will continue to support the FCC's existing open internet rules. The FCC is currently working on strengthening the open internet rules, to ensure non-discriminatroy access to internet content and disclosure of any traffic shaping activities. The court ruling suggests it may have to look at new ways for extending its regulatory powers to internet traffic management. The Open Internet Coalition, which includes net neutrality supporters such as Amazon and Google, said the court ruling makes it impossible for the FCC to develop new open internet rules under the existing Title I regulation of ISPs. The lobby group called for the FCC to move to regulate under the stricter Title II regulations applied to phone companies. However large telecom operators such as AT&T and Verizon have warned the FCC against extending its regulatory powers, saying this could put at risk investment in networks and the government's plans to expand broadband access. The FCC said in a statement in response to the court ruling that it would look to build the open internet rules on a "solid legal foundation". While the court invalidated its previous approach, the court "in no way disagreed with the importance of preserving a free and open internet; nor did it close the door to other methods for achieving this important end", the regualtor said.
