In the wake of a stinging defeat in court, the Federal Communications Commission finds its ability to regulate the Internet in question, its signature “net neutrality” initiative hanging by a thread. Now, the agency faces several unpalatable options.

In Comcast Corp. v. FCC (pdf), the U.S. Court of Appeals for the D.C. Circuit unanimously ruled on Tuesday that the FCC lacks the authority to regulate the network-management policies of Internet service providers.

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