US court upholds 'net neutrality'

A US federal court ruled Tuesday that the Internet is effectively a public utility, upholding a hotly contested regulation requiring broadband firms to treat all online traffic equally.

The so-called "net neutrality" principle was upheld in a 2-1 decision by the US Appeals Court panel in Washington, a major ruling in a decade-long legal battle and the first court approval after two past efforts failed.

The ruling deals a setback to major broadband firms like Verizon and AT&T, which claimed the rules unfairly restrict providers and discourage investment.

Backers of the rule say it is needed to ensure that Internet service providers avoid deals that could favor one service with faster access while throttling or blocking a rival.

Companies such as Netflix, Yelp and Twitter, for example, were backing the FCC rules.

"Now consumers will be assured the right to full access to the Internet without interference from gatekeepers," said Gene Kimmelman of the consumer group Public Knowledge.

Ed Black of the Computer & Communications Industry Association, which represents various Internet and tech firms, also welcomed the ruling.

"This is a huge, historic victory for all Internet users," Black said. "It means no company can act as a gatekeeper for Internet content.”

President Barack Obama, who has been a backer of net neutrality, welcomed the ruling.

"Today's ruling is a victory for the open, fair, and free Internet as we know it today -- one that remains open to innovation and economic growth, without service providers serving as paid gatekeepers," a White House statement said.