# What Is Net Neutrality? Policies and Controversy

![Fiber optic broadband](https://www.investopedia.com/thmb/TVkTcinRwVc5u5RVbA5dcXZKZlo=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/fibre-optic-broadband-165186248-593afec63df78c537b5ad788.jpg)

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## What Is Net Neutrality?

Net neutrality is a policy that requires [internet service providers (ISPs)](https://www.investopedia.com/terms/i/isp.asp) to provide equal access to the internet, with no changes in speed, regardless of content, user, platform, application, or device. In the U.S., after years of back-and-forth between administrations, the policy was struck down by an appeals court in 2025.

### Key Takeaways

*   Net neutrality was designed to ensure that all data on the internet is treated equally by ISPs and governments, regardless of content, user, platform, application, or device.
*   Supporters argue that net neutrality is essential for an open internet, whereas critics say the policy stifles innovation.
*   In the U.S., net neutrality was first enacted by the Obama administration. It was then repealed by the Trump administration, and later reinstated by the Biden administration. [It was struck down by a federal appeals court in January 2025](https://www.investopedia.com/the-evisceration-of-net-neutrality-8770956).  
    

## Understanding Net Neutrality

Net neutrality is a policy that makes the [internet](https://www.investopedia.com/terms/i/internet-things.asp) more equally accessible. It requires ISPs to provide the same level of data access and speed to all traffic. In addition, ISPs cannot block content or engage in throttling to limit user upload and download rates.

Supporters say net neutrality is essential for an open internet, as it prevents ISPs from blocking or filtering online content, or giving preferential internet speeds based on business agreements. They argue that cable companies should be classified as "common carriers," like public utility companies or public transportation providers, which are forbidden by law from discriminating among their users.

Critics such as conservative think tanks, hardware companies, and major telecommunication providers argue that the policy stifles market competition and innovation.  

> **Fast Fact**
>
> Columbia University law professor Tim Wu coined the term "net neutrality."

## History

The Obama administration advanced net neutrality legislation in 2015 and enacted rules that barred ISPs such as AT&T and Comcast from deliberately speeding up or slowing down traffic to or from specific websites based on demand or business preferences.

However, in 2017, the [Federal Communications Commission (FCC)](https://www.investopedia.com/terms/f/fcc.asp), under President Trump, eliminated all net neutrality protections and renounced its authority over broadband. It also allowed states to implement their own open internet rules.

In July 2022, Senators Edward J. Markey (D-Mass.), Ron Wyden (D-Ore.), and Representative Doris Matsui (CA-06) introduced the Net Neutrality and Broadband Justice Act. This legislation would classify broadband internet access as a telecommunications service under Title II of the Communications Act, giving the FCC the appropriate authority to reinstate net neutrality protections.

In April 2024, the Federal Communications Commission (FCC) restored net neutrality. In August 2024, a federal appeals court put the policy on pause at the request of a trade group that represented ISPs. In January 2025, a federal appeals court struck delivered the final blow against net neutrality in the U.S.

## Arguments for Net Neutrality

*   Supporters say that net neutrality ensures an open internet and prevents broadband providers from practicing data discrimination as a competitive tactic.
*   Supporters say that smaller companies will be more likely to [enter the market](https://www.investopedia.com/terms/b/barrierstoentry.asp) and create new services.  
    

## Criticism of Net Neutrality

*   Critics say that forcing ISPs to treat all traffic equally will ultimately [discourage the investment in new infrastructure](https://www.investopedia.com/insights/does-net-neutrality-stifle-investment-and-innovation/) and will also create a disincentive for ISPs to innovate.  
    
*   Critics say that tiered prices allow ISPs to remain competitive and generate the funds needed for further innovation and expansion of broadband networks, as well as to recoup the costs already invested in broadband.

## Examples of Net Neutrality Violations

Following the 2017 repeal of net neutrality in the U.S., several violations were studied, including:

*   YouTube and [Netflix](https://www.investopedia.com/insights/how-netflix-makes-money/) were slowed by wireless carriers, using a fraction of the available speed.
*   Verizon’s throttling of services affected the Santa Clara County Fire Department’s ability to provide emergency services during the California wildfires.
*   Comcast introduced new speed limits where videos will be throttled to 480p on all its mobile plans unless customers pay extra.
*   AT&T introduced a "Turbo" add-on feature for its mobile data plans, which allows users to pay an extra amount for faster speeds. While technically allowed (as it is a service tier), it raised questions as a potential net neutrality violation.  
    

## What Is Net Neutrality and Why Is It Important?

Net neutrality is the policy that states that internet service providers should treat all data on the internet equally. Proponents argue it promotes a free and open Internet, where users can access content without restriction, provided the content does not violate any laws. Critics argue it stifles innovation and market competition.

## Does the EU Have Net Neutrality?

The European Union (EU) formed regulations to promote and protect an open internet, preventing internet service providers from restricting and blocking users' access to lawful content. Certain exceptions, such as the ability to slow traffic at the request of a court order, apply.

## Is There Net Neutrality in India?

In 2017, India developed one of the strictest net neutrality laws in the world. Policymakers and Indian activists, with a desire to promote an open internet and widespread internet access across the nation, advocated together for the net neutrality law. Service providers who violate these regulations may lose their license to operate.

## The Bottom Line

Net neutrality has had a few twists and turns in the U.S. First enacted by the Obama administration as a policy regulated by the FCC, it was gutted by the Trump administration, and then reinstated by the Biden administration. In January 2025, it was struck down by a federal appeals court. But the policy lives on elsewhere around the world, including the EU and India.

> **Article Sources**
>
> 1.  Federal Communications Commission. "[Net Neutrality](https://www.fcc.gov/net-neutrality)."
>     
> 2.  Columbia Law School. "[Faculty: Timothy Wu](https://www.law.columbia.edu/faculty/timothy-wu)."
>     
> 3.  U.S. Government Publishing Office. "[Why Net Neutrality Matters: Protecting Consumers and Competition Through Meaningful Open Internet Rules](https://www.govinfo.gov/content/pkg/CHRG-113shrg21221/html/CHRG-113shrg21221.htm)."
>     
> 4.  Internet Society. "[Policy Brief: Network Neutrality](https://www.internetsociety.org/policybriefs/networkneutrality/?gclid=EAIaIQobChMI-I2K7cbR-QIVwcDICh2KPgdpEAAYASAAEgIL__D_BwE)."
>     
> 5.  Federal Communications Commission. "[Chairman Pai Statement on Victory in D.C. Circuit](https://docs.fcc.gov/public/attachments/DOC-359970A1.pdf)."
>     
> 6.  Senator Ed Markey. "[Senators Markey, Wyden, and Rep. Matsui Introduce Legislation to Reinstate Net Neutrality, Reverse Damaging Trump-Era Deregulation](https://www.markey.senate.gov/news/press-releases/senators-markey-wyden-and-rep-matsui-introduce-legislation-to-reinstate-net-neutrality-reverse-damaging-trump-era-deregulation)."
>     
> 7.  United States Court of Appeals for the Sixth Circuit. ["Upon Multi-Circuit Petitions for Review of the Federal Communications Commission’s Safeguarding and Securing the Open Internet Order, FCC 24-52."](https://www.opn.ca6.uscourts.gov/opinions.pdf/25a0002p-06.pdf)
>     
> 8.  Reuters. "[U.S. Court Blocks Biden Administration Net Neutrality Rules.](https://www.reuters.com/legal/us-court-blocks-biden-administration-net-neutrality-rules-2024-08-01/)"
>     
> 9.  Federal Communications Commission. "[FCC Announces Effective Date of Net Neutrality Order](https://www.fcc.gov/consumer-governmental-affairs/fcc-announces-effective-date-net-neutrality-order)."
>     
> 10.  Consumer Reports. "[Understanding the Fight Over Net Neutrality](https://www.consumerreports.org/net-neutrality/understanding-fight-over-net-neutrality/)."
>      
> 11.  Bloomberg. "[YouTube, Netflix Found to Be Slowed by Wireless Carriers](https://www.bloomberg.com/news/articles/2018-09-04/youtube-and-netflix-throttled-by-carriers-research-finds)."
>      
> 12.  Ars Technica. "[Verizon Throttled Fire Department’s “Unlimited” Data During Calif. Wildfire](https://arstechnica.com/tech-policy/2018/08/verizon-throttled-fire-departments-unlimited-data-during-calif-wildfire/)."
>      
> 13.  Ars Technica. "[Comcast Starts Throttling Mobile Video, Will Charge Extra for HD Streams](https://arstechnica.com/information-technology/2018/07/comcast-starts-throttling-mobile-video-will-charge-extra-for-hd-streams/)."
>      
> 14.  Telecoms. "[AT&T's New 'Turbo' Charge Raises Net Neutrality Concerns](https://www.telecomstechnews.com/news/att-turbo-charge-raises-net-neutrality-concerns/)."
>      
> 15.  European Commission. "[Open Internet](https://digital-strategy.ec.europa.eu/en/policies/open-internet)."
>      
> 16.  Government of India, Department of Telecommunications. "[Net Neutrality](https://dot.gov.in/net-neutrality)."
>      
> 17.  CNN Money. "[India Now Has the 'World's Strongest' Net Neutrality Rules](https://money.cnn.com/2018/07/12/technology/india-net-neutrality-rules-telecom/index.html)."