Net Neutrality Issue (Again): Pros and Cons

Net neutrality came to an end in the U.S. in January 2025. This was the Federal Communications Commission (FCC) policy that required internet service providers (ISPs) to deliver content at the same speed regardless of its source. This meant, among other things, that the Walt Disney Company couldn’t pay extra for a better download speed, and your nephew’s blog wouldn’t get lousy delivery because he couldn’t pay a premium. And, your ISP couldn’t slow down your service unless you paid to upgrade to the best delivery speed.

Now that a federal appeals court has shut down net neutrality in the U.S., it’s important to understand what it was, how we got here, and what could be next.

Key Takeaways

• Net neutrality is a rule that prohibits ISPs from charging businesses or consumers differently for better (or worse) internet delivery speeds.
• The issue of net neutrality was settled in the U.S. in January 2025. A federal appeals court determined that the FCC can’t regulate ISPs in this way.
• Net neutrality is in practice around the world, including the EU and India.

Obama Administration

The Obama administration advocated for a continuation of net neutrality, the FCC rules in place since 2010 that required companies like Verizon (VZ) and Comcast (CMCSA) to handle all content on their networks in an equal fashion, regardless of whether it was a video on a personal blog, a streaming service like Spotify, or a government website.

What the Rules Prevented

More specifically, net neutrality rules prevented:

• Throttling or slowing down the delivery of some websites or online services
• Preferential treatment, better service, or faster service for companies or consumers who paid higher premiums to service providers

In January 2014, under then-chair Tom Wheeler, the FCC proposed new rules for internet traffic that would allow broadband providers to charge companies like Netflix (NFLX) and Google (GOOG) a higher rate to deliver content via the speediest lanes. 

Enter John Oliver

Wheeler was a former lobbyist for the cable television industry, which some argued could benefit greatly if new rules were created to allow internet service providers to treat data differently for different clients or customers. Before the initial policy decision on February 26, 2015, HBO’s John Oliver became an unofficial pro-net neutrality spokesman and mocked Wheeler over the issue on more than one occasion. 

The Arguments for Net Neutrality

The end of net neutrality would spawn the beginning of net inequality, Oliver and others said. Broadband providers, many of which also offer cable TV services, would be able to charge premiums for an indispensable service for businesses: fast internet service. The providers would be able to selectively pick which companies get access to high-speed internet and how much they should pay, which could be devastating for the streaming industry.

The Legal Fight

Oliver focused the public’s attention on a difficult-to-understand legal fight. During the first round of debates in 2015, the public filed more than 120,000 comments on the issue of “Protecting and Promoting the Open Internet.” That staggering number is almost ten times the next most-commented issue at the time. The FCC site actually crashed after the John Oliver episode aired.

The Blowback

Many of the comments expressed outrage that the FCC would permit a new era of tiered internet service. Consumers and businesses feared that the internet would become a segregated landscape in which some content would be delivered at full speed while others would work more slowly because their owners couldn’t pay the premiums for the biggest bandwidth.

Many social media users noted that in countries without net neutrality, people have to pay packages for different types of internet. The practical effect is that a consumer who wants to stream video has to pay for a more expensive package than a consumer who just visits websites.

The Fight Continues

It seemed that the issue was put to rest in 2015 when the regulations that restricted broadband providers from blocking content, slowing down specific services or applications, and receiving payments for favorable treatment stayed in place. The net neutrality advocates won.

Then in November 2016, Donald Trump was elected president. He installed Agit Pai as the new head of the FCC. 

Rolling Back Regulation

Pai warned against net neutrality in 2015, arguing in a speech, “It’s basic economics. The more heavily you regulate something, the less of it you’re likely to get.”

Note

Pai said that the purpose of the roll-back of policy was to “restore internet freedom,” according to a press release.

After becoming the new FCC head in January 2017, Pai continued to argue that high-speed internet service should not be treated as a public utility and that the industry should police itself instead of being regulated by the government. With that, the same conflict that was put to rest in 2015 began once again.

Alerting Consumers

More than 80,000 websites and organizations, including Google, Facebook, and, perhaps surprisingly, AT&T, joined a protest called the “Day of Action” on July 12, 2017. On that day, websites published alerts encouraging users to send letters to the FCC urging it to keep net neutrality. On December 12, 2017, many web-based companies such as Reddit, Etsy, and Kickstarter posted protests to the FCC’s imminent vote on their websites. Still, the FCC voted to repeal net neutrality on December 14, 2017. The measure took effect on June 11, 2018.

Biden Administration

In 2018, the Senate voted to overturn the repeal of net neutrality but the resolution stalled in the House. The House then put it to a vote again in 2019 under the “Save the Internet Act”. But it was effectively dead in the water.

Joe Biden was inaugurated as President on January 20, 2021. His FCC chair, Jessica Rosenworcel, championed net neutrality. In 2024 the commission reinstated the policy.

However, the Ohio Telecom Association, a trade group representing ISPs, brought a case accusing the FCC of regulatory overreach. In January 2025, a federal appeals court based in Cincinnati agreed, calling net neutrality a “heavy-handed regulatory regime.”

Any substantial change, even at the state level, could be tough to implement. The FCC said that local and state governments cannot pass laws inconsistent with federal net neutrality rules.

What Is Net Neutrality?

As an Federal Communications Commission (FCC) policy that targeted internet service providers (ISP), net neutrality attempted to ensure equal access to the internet, making the internet open and free for everyone. Introduced by the Obama administration, it was gutted by the Trump administration and reinstated by the Biden administration before ultimately being eliminated by a federal appeals court in January 2025, which stated that the FCC couldn’t regulate ISPs in this way.

How Did Net Neutrality Start in the U.S.?

The Federal Communications Commission (FCC) under the Obama administration was the first to vote in favor of net neutrality.

What Did the Trump Administration Do to Net Neutrality?

Agit Pai, the chair of the Federal Communications Commission (FCC) under the Trump administration, called for the elimination of net neutrality rules. The commission voted to do just that.

The Bottom Line

Net neutrality was passed back and forth between administrations for 15 years, from 2010 to 2025. A federal appeals court finally closed the issue in January 2025, ruling in favor of a trade group that represented ISPs. Though net neutrality is dead in the U.S., it is alive and well elsewhere in the world, including India and the European Union (EU).