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The service lets users access certain sites for free - but not the entire internet.
This sparked an intense row in India over net neutrality, the principle that all network data must be treated equally. Critics of the scheme argue that Free Basics creates a ghettoized internet, with the main internet for the (relatively) wealthy and a limited version for poor people.
On Monday, the Telecom Regulatory Authority of India (TRAI) announced it had issued the "Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016," which "disallow[s] service providers to offer or charge discriminatory tariffs for data services on the basis of content being access by a consumer."
The announcement does not mention Facebook, or Free Basics, by name - but by taking a pro-net neutrality stance and blocking services from offering only certain types of content, it means Free Basics will not be able to function.
TRAI
As debate has raged over Free Basics, Facebook has strongly defended the service, spending a reported $45 million promoting it. But it has also been
But it has also been accused by the Indian government of misrepresenting levels of support for the service in the county. Authorities sent a letter to the head of Facebook India alleging that it created a "crudely majoritarian and orchestrated opinion poll" that didn't properly reflect levels of support for Free Basics.
Business Insider has reached out to Facebook for comment.
Activists and rights groups are celebrating the decision.
World's biggest democracy bans zero rating. Bravo India! #savetheinternet #freebasics pic.twitter.com/ifS0hqUgR0
- Renata Avila (@avilarenata) February 8, 2016
Congrats to Indian #netneutrality supporters for amazing campaign & epic win https://t.co/Tkw5CDdSD9 cc @BERECeuropaeu #savetheinternet
- EDRi (@edri) February 8, 2016
This story is developing ...