AT&T wants $100M data throttling fine thrown out

Updated

AT&T is asking the U.S. Federal Trade Commission to cancel a proposed $100 million fine levied against the company for throttling data speeds for users with “unlimited” data plans, The Hill reports. The FCC launched a complaint in October 2014 claiming AT&T slowed speeds for users who had used a certain amount of data each month without informing customers of the policy, then announced in June that it intended to fine the company for that practice.

In a July court filing, AT&T argues that it had properly disclosed its policies to customers – both in online postings and via direct text messages – and took issue with the proposed fine. The company is asking that courts weigh in on the legality of the fine – the largest ever handed down by the FCC – and that any action be halted until they reach a decision. “The Commission’s findings that consumers and competition were harmed are devoid of factual support and wholly implausible,” the company’s filing states. “Its ‘moderate’ forfeiture penalty of $100 million is plucked out of thin air, and the injunctive sanctions it proposes are beyond the Commission’s authority.” The FCC claims a “transparency” provision in a 2010 net neutrality order gives it the authority to levy the fine, but AT&T says that assumption is based on a misreading of a portion of the law taken out of context. The FCC declined to comment on AT&T’s latest filing.

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Dan Pye

Dan Pye was a news editor at iLounge. He's been involved with technology his whole life, and started writing about it in 2009. He's written about everything from iPhone and iPad cases to Apple TV accessories.