The Eighth Circuit U.S. Court of Appeals struck down the Federal Communications Commission's 2023 rule targeting digital discrimination. This regulation, mandated by the Infrastructure Investment and Jobs Act, prohibited broadband access discrimination based on income, race, and ethnicity.
The court ruled the FCC exceeded its statutory authority by adopting a disparate impact standard. This standard allowed the agency to penalize practices with discriminatory effects, even if they were unintentional.
Telecom and cable industry groups filed the lawsuit, arguing the agency overstepped its legal mandate. The decision vacates the rule entirely. The FCC must now restart the rulemaking process to fulfill its obligations under the infrastructure law.