A federal appeals court has upheld the Federal Communications Commission's decision to repeal Obama-era "net neutrality" rules while allowing states to set their own rules—a mixed verdict for associations on both sides of the issue.

Net neutrality is a set of principles that would prevent internet service providers like cable companies from restricting access to certain forms of data, such as websites or streaming video services. Associations representing web-based businesses and software developers generally support net neutrality while groups representing providers say it is unneeded and overly restrictive.

The Republican-led FCC repealed the Obama-era net neutrality rules in 2017, prompting a lawsuit challenging the decision from a group of tech companies, consumer advocates and numerous state officials. The D.C. Circuit Court of Appeals on Tuesday upheld the FCC repeal with the exception of a ban on states from setting their own net neutrality rules, handing a victory to internet service providers but leaving the door open for proponents to enact their policies at a state level, according to the technology news site CNET. https://cnet.co/2okwWsK

CTIA, a vocal opponent of the Obama-era rules, issued a brief statement following the ruling, with CEO Meredith Attwell Baker saying the wireless industry is "pleased that the court upheld the FCC's authority to classify mobile broadband."

"The time is now right for Congress to enshrine permanent neutrality protections into law, thereby safeguarding consumers' interests without discouraging network investments which are vital to promoting innovation and creating jobs," she said.

NCTA—The Internet & Television Association, another opponent of the Obama rules, said the decision will have little impact on consumers' internet experiences.

"It does nothing to change our industry's enduring commitment to providing consumers with the same open internet experience that has been delivered for decades." NCTA CEO Michael Powell said.

Other associations were less thrilled with the ruling. In a joint statement, the Internet Association and Entertainment Software Association both vowed to keep fighting for net neutrality.

"This ruling fails to ensure a fair and open internet for video game players and all internet users," ESA CEO Stanley Pierre-Louis said. "While ESA is disappointed by the court's decision, today's ruling stops short of endorsing the Commission's order and opens the door to state action to protect net neutrality."