Cover Image for The Next Day: The FCC's Attempt to Restore Net Neutrality Was Unsuccessful.
Sat Jan 04 2025

The Next Day: The FCC's Attempt to Restore Net Neutrality Was Unsuccessful.

The main news this morning: Tesla reports its first annual decline in deliveries, and a new 27-inch 4K OLED monitor aimed at gaming is introduced.

A recent ruling by the U.S. Court of Appeals for the Sixth Circuit determined that the FCC lacks the "statutory authority" to implement net neutrality rules. Since these rules were established in 2015, the FCC argued that by classifying internet service providers (ISPs) as "telecommunications services," it has broad power to regulate them. However, a redefinition of ISPs as "information services" during Trump’s first administration led to the repeal of net neutrality in 2017.

The current FCC team voted in April of last year to restore net neutrality. The key difference between 2015 and today is the recent and drastic reinterpretation of an important legal doctrine by the Supreme Court. Previously, the Chevron doctrine stipulated that if Congress had not made a ruling on an issue, courts must defer to the interpretation of government agencies. Now, the interpretation rests with individual judges, and the Sixth Circuit does not support the FCC's position.

This marks an obstacle for the FCC's efforts to gain some power over internet providers and ensure equitable speeds and access, regardless of service. Although net neutrality rules will remain in effect in California and other states, any action at the federal level will require a law from Congress or, in this case, a successful appeal to the Supreme Court.

In a related development, Tesla experienced a decline in annual deliveries for the first time, with a total of approximately 1.78 million vehicles delivered in 2024, compared to 1.81 million in 2023. This caused its stock to drop by up to 7%, although it later managed to regain some points.

Additionally, Apple has agreed to pay $95 million to settle a class-action lawsuit related to Siri's privacy. Class members could receive up to $20 per Siri-enabled device as a result of a 2019 report revealing that Apple's quality control contractors could listen to sensitive information accidentally recorded by the "Hey Siri" feature.

In a historical note, 42 years ago, Time magazine awarded its "Man of the Year" title to the computer, highlighting the importance of this device in modern life, long before the publication began recognizing groups of people or diversity in its awards.