An appeals court has struck down federal rules that prohibit discrimination in access to broadband services. The decision was welcomed by Federal Communications Commission Chairman Brendan Carr, who voted against the Biden-era rules when they were approved in 2023.

The court ruling stated that the FCC exceeded its legal authority by imposing liability for actions that result in “disparate impact,” instead of merely policing “disparate treatment.” The FCC’s application of the rules to entities not directly offering Internet service was also deemed overreaching. Three judges appointed by Republican presidents issued the unanimous decision.

Carr claimed the new rules would have required broadband providers and other businesses to discriminate against people based on their race, gender, or other protected characteristics. However, he did not provide concrete examples of how this could happen under the rules. Carr also pointed out that such rules are similar to diversity, equity, and inclusion policies, which he has previously criticized as discriminatory.

John Bergmayer from Public Knowledge criticized the court’s decision, stating that it eliminates a rule addressing a well-documented problem: lower-income neighborhoods and communities of color often receive slower service, older equipment, and higher prices for Internet services compared to wealthier areas. After today's ruling, the FCC can only act in cases where there is evidence of conscious bias – which rarely exists.

The rules had enabled consumers to file complaints about alleged discrimination, with the FCC defining the elements it would examine during investigations. The Biden-era order stated that all penalties and remedies would be available when determining rule violations.