In two letters sent to AT&T and Verizon yesterday, the FCC writes that sponsored data plans from the telecom giants are a threat to net neutrality.
FCC writes that the programs harm competition
Both companies have recently instituted similar plans. Under the programs, customers can use select services without having them contribute to a data cap — a practice known as zero rating. In AT&T’s case, the FCC writes that, despite protests from the company, its sponsored data program “strongly favors AT&T’s own video offerings” while damaging the opportunity for other video services to compete.
“We have therefore reached the preliminary conclusion that these practices inhibit competition, harm consumers, and interfere with the ‘virtuous cycle’ needed to assure the continuing benefits of the Open Internet,” FCC wireless bureau chief Jon Wilkins writes in the letter, which requests a response from the company by December 15th.
“These are incredibly popular free services available to millions of customers,” AT&T said in a statement. “Once again, we will provide the FCC with additional information on why the government should not take away a service that saves consumers money.”