A U.S. appeals court has ruled that the Federal Communications Commission lacks the authority to reinstate net neutrality rules. The decision references the Supreme Court’s recent ruling in the Loper Bright case, which limited federal agency power. Initially implemented in 2015, net neutrality rules require internet service providers to treat all data equally, preventing them from slowing or blocking content. The court’s ruling, which leaves state-level neutrality rules intact, marks a significant shift in regulatory oversight of the Internet. The FCC Chair, Jessica Rosenworcel, has called on Congress to act on net neutrality, emphasizing consumer demand for a fair and open internet. Industry groups, including USTelecom, have welcomed the ruling, claiming it will increase investment and competition in the digital marketplace.
Several new laws regulating artificial intelligence and deepfakes took effect in California at the beginning of 2025. These laws expand existing regulations to include artificial intelligence-generated depictions of minors and criminalize pornographic deepfakes. Additionally, social media platforms are now required to remove such content. Legal challenges are emerging, including a lawsuit from Elon Musk’s X against a law mandating labels for misleading political deepfakes. With Congress yet to act on artificial intelligence regulation, states like Texas and Illinois are moving forward with their legislation, indicating a growing patchwork of laws governing this technology.
Why do we care?
The ruling indicates a shift in regulatory sentiment regarding internet governance. The lack of net neutrality could increase service providers’ costs if ISPs decide to charge more for priority access to their networks. Additionally, IT service providers need to consider how this change might affect end-user expectations and business models.
As we consider AI regulation existing services may need to be re-evaluated. For instance, services related to social media management and content creation may need to integrate compliance checks to ensure that any AI-generated content adheres to the new legal standards.
There exists the possibility of redundancy in services that rely heavily on AI-generated content without adequate safeguards. I think it’s early days for that risk, but I did want to highlight it.