Six months ago, a federal appeals court struck down net neutrality rules that prohibited Internet service providers from blocking Web content or discriminating against Web services. The court said the FCC messed up by imposing "per se common carrier obligations" onto ISPs without first reclassifying them as common carriers.
The FCC responded by coming up with a weaker set of rules that would effectively outlaw blocking by requiring a minimum level of service, while allowing ISPs to sell "fast lanes" in which Web services can pay for priority access to consumers.
The common wisdom is that the FCC can't issue stronger rules unless it re-classifies broadband as a telecommunications service, which would open ISPs up to utility-style, common carrier regulations under Title II of the Communications Act.
AT&T has vehemently argued against Internet service being treated like a utility. And now, despite that court ruling, AT&T claims that the FCC can ban fast lanes or "paid prioritization" without reclassifying broadband. However, AT&T's argument includes a big loophole that would actually allow extensive paid prioritization.
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