'Sponsored data' probe closed

Net neutrality rules imposed by FCC in 2015 require broadband providers to treat all data equally

The US telecommunications regulator said it was closing inquiries into sponsored data programmes and TV services offered by AT&T, Verizon Communications, Comcast Corp, T-Mobile USA without taking any action.

Under the Obama administration, the Federal Communications Commission had sent letters raising concerns about whether some data practices by AT&T and Verizon violated net neutrality rules. The FCC had also sent letters to Comcast about its “Stream TV” service and to T-Mobile about its “Binge On” service in 2015.

Millions of mobile phone users benefit from free data video services but critics warn that the practice may prod users into avoiding competitors’ services. Net neutrality rules imposed by the FCC in 2015 require broadband providers to treat all data equally and bar service providers from slowing consumer access to web content.

Tom Wheeler, who was FCC chairman until January 20, told Reuters last month that its investigation found some free data practices were abusive and anticompetitive.

But in an about-face on Friday, the regulator now under Republican control said it was closing its investigation.

“These free-data plans have proven to be popular among consumers, particularly low-income Americans, and have enhanced competition in the wireless marketplace,” new FCC chairman Ajit Pai said in a statement.