This just got a lot uglier, but expected: Comcast (NSDQ: CMCSA) is now appealing the Federal Communications Commission to block the regulatory agency’s decision to cite and sanction the company for blocking certain Internet traffic. Comcast challenged the FCC decision Thursday in the U.S. District Court of Appeals in Washington DC.

In August the FCC handed down a 3-2 decision against Comcast where the regulator lambasted the company for blocking and slowing down P2P traffic on its service. The FCC didn’t fine Comcast but ordered it to end all its discriminatory ways by the end of the year, and asked it to disclose all its practices within 30 days. Comcast EVP David Cohen said in a statement that the commission’s action was “legally inappropriate and its findings were not justified by the record.” But, Cohen told AP that the company will comply with the FCC’s order for now. From the company statement: “Although we are seeking review and reversal of the Commission’s network management order in federal court, we intend to comply fully with the requirements established in that order, which essentially codify the voluntary commitments that we have already announced, and to continue to act in accord with the Commission’s Internet Policy Statement.”

This lawsuit is sure to trigger a legal battle over how much FCC and the government could regulate Internet access providers, and will be influenced by whoever comes in as a result of the upcoming Presidential elections in U.S.

• Comcast To Roll out Monthly Usage Cap
• Comcast To Delay Speeds For Heaviest Users During Peak Time
• FCC Lambasts Comcast For Blocking P2P Traffic, But Doesn’t Issue Fine
• FCC Chair: Comcast Violated Open Access Rules
• AT&T Ratchets Up Network Neutrality Debate In Letter To FCC