The Washington-based U.S. Court of Appeals on Tuesday upheld net-neutrality regulations designed to ensure an open internet, handing a victory to the Obama administration and a defeat to telephone and cable providers. The debate was over web access that pitted Silicon Valley against companies that provide internet access to homes and businesses. The court likened internet service providers to utilities, saying they "act as neutral, indiscriminate platforms for transmission of speech."

The Federal Communications Commission’s Democratic majority passed the rules last year. It is a win for Google, online video provider Netflix and others who championed the notion of an open internet where internet service providers are prevented from offering speedier lanes to those willing to pay extra for them.

Challengers including AT&T Inc., Verizon Communications Inc. and Comcast Corp. said the rule would discourage innovation and investment. AT&T said it would appeal to the U.S. Supreme Court.

"Today’s ruling is a victory for consumers and innovators who deserve unfettered access to the entire web," FCC Chairman Tom Wheeler said. "It ensures the internet remains a platform for unparalleled innovation, free expression and economic growth."

The National Cable & Telecommunications Association, with members including top U.S. cable provider Comcast and Charter Communications Inc., said in a statement it was reviewing the decision.