In a move hailed by much - but not all - of Silicon Valley, a US appeals court on Tuesday upheld federal "net neutrality" rules that prevent internet providers from slowing down service for some users while speeding it up for others willing to pay extra.

As internet companies emphasise video, which requires beefed-up networks, the Federal Communications Commission's regulatory powers are viewed as crucial to making sure that streams of images and sound arrive smoothly on users' smartphones, computers and televisions.

Net-based Video provider like Netflix have long supported moves against ISPs providing preferential services to those that pay more. Credit:iStock

The ruling allows the federal government to regulate Internet service as a utility similar to telephone networks, a step that will have profound implications for the way internet providers operate.

Assuming the decision stands, companies such as Verizon, Comcast and AT&T will also face tougher rules for protecting and sharing their customers' data.