Another day, another judicial rebuke to the Obama Administration's abusive rule-making habits. On Tuesday, a three-judge panel of the D.C. Circuit tossed out as illegal the Federal Communications Commission's bald attempt to regulate the Internet.

For those keeping score at home, that means the FCC is now zero for two in its attempts to impose "net neutrality" rules on the Internet. Net neutrality travels under the guise of ordering Internet service providers like Verizon and Comcast not to discriminate against content providers. In reality it's a government attempt to dictate how these providers must manage their Internet pipes and how much they can charge companies for using those pipes.

Silicon Valley kingpins like net neutrality because it means Verizon can't charge Google 's YouTube or Netflix more for using more capacity or faster speeds. This makes no more economic sense than forcing a cable company to charge one price no matter how many channels a consumer subscribes to, or saying a retailer can't charge more for two dresses than for one. It also means less innovation and slower broadband rollout because Internet companies are less sure of their return on investment.

President Obama nonetheless made net neutrality one of his 2008 campaign pledges, but he tried and failed to get even a Democratic Congress to pass legislation. No matter, because former FCC Chairman Julius Genachowski took up the dirty work and jammed the rule through the commission on a partisan 3-2 vote in December 2010.

Now the three judges, two of them Democratic appointees, have concluded that this power grab exceeded the FCC's legal authority as some of us argued at the time. Their ruling throws out the entire regulation except for its disclosure requirements.