The battle for net neutrality was once a hot-button issue in the US, pitting internet service providers against big tech companies like Google and Netflix.
Comedian John Oliver famously urged his audience to voice their support for the rules, leading to a flood of comments that crashed the government’s website.
But that problem has disappeared since the rules were lifted in 2018.
Thursday’s ruling does not affect state net neutrality laws, which in some places offer similar protections.
But advocates such as Mr Oliver said national rules were important to ensure ISPs did not have the power to throttle certain content or charge more for the speedy delivery of their services.
Public Knowledge, a progressive Internet policy group, said the ruling weakened the FCC’s authority to define privacy protections, enforce public safety measures and take other actions.
He said he believed the court erred in ruling that the ISPs were merely offering “information services” and not acting as telecommunications companies.
“The court has created a dangerous regulatory loophole that leaves consumers vulnerable and gives broadband providers unchecked power over Americans’ Internet access,” it said.
But USTelecom, an industry group that includes AT&T and Verizon as members, said the decision was “a win for American consumers that will lead to increased investment, innovation and competition in a dynamic digital marketplace.”