The Third Circuit today upheld a Federal Communications Commission order that allows incumbent local exchange carriers — nowadays primarily AT&T and Verizon — to discriminate against competiting providers of Internet service. The court concluded that the FCC didn’t exceed its authority in treating ILECs as purveyors of "information services" when they furnish access to the Internet. The classification, which cable providers already enjoy, frees the ILECs from lots of the regulations that apply (to them and others) when they supply "telecommunications services". Time Warner Telecom, Inc. v. FCC, Nos. 05-4769, 05-5153, 06-1466 & 06-1467 (3d Cir. Oct. 16, 2007).