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opinion concurring in part and dissenting in part agreed with
the court’s conclusion as to the existence of rulemaking
authority under section 706 and made no suggestion that the
conclusion was mere dicta. See Verizon, 740 F.3d at 659–68
(Silberman, J., concurring in part and dissenting in part).
Alamo does not contend that the anti-paid-prioritization
rule falls outside the scope of the Commission’s rulemaking
authority under section 706 or is otherwise an improper
exercise of that authority (if, as we held in Verizon and
reiterate here, that authority exists in the first place). Alamo
argues only that Verizon was wrong on the antecedent
question of the Commission’s authority to promulgate rules
under section 706 at all. Unfortunately for Alamo, Verizon
established precedent on the existence of the Commission’s
rulemaking authority under section 706 and thus controls our
decision here. Consequently, we reject Alamo’s challenges to
the Commission’s section 706 authority and to the anti-paidprioritization rule.
Our colleague picks up where Alamo leaves off, arguing
that, even if Verizon’s conclusions about the existence of the
Commission’s section 706 authority were not mere dicta,
Verizon’s conclusions about the scope of that authority
(including the permissibility of the Commission’s reliance on
the “virtuous cycle” of innovation) were dicta. Concurring &
Dissenting Op. at 52. Both sets of conclusions, however,
were necessary to our upholding the transparency rule. See
Verizon, 740 F.3d at 639–40, 644–49. Consequently, as we
held in Verizon and reaffirm today, the Commission’s section
706 authority extends to rules “governing broadband
providers’ treatment of internet traffic”—including the antipaid-prioritization rule—in reliance on the virtuous cycle
theory. Verizon, 740 F.3d at 628; see 2015 Open Internet
Order, 30 FCC Rcd. at 5625–34 ¶¶ 76–85; id. at 5623–24
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