The Federal Trade Commission has lost a fight over mobile data throttling against AT&T.
This two-year-old case stemmed over the FTC’s accusation that the carrier needed to inform the commission before slowing down the data speeds of customers using excessive amounts of it on a grandfathered unlimited plan. The agency said that such deceptive practices are prohibited under the Federal Trade Commission Act.
The Ninth Circuit court of appeals, however, ordered a lower court to dismiss the lawsuit. AT&T’s argument for throttling was that the Act allowed common carriers to do so. The FTC has yet to decide on appealing the dismissal.
The Federal Communications Commission is proposing to penalize AT&T up to $100 million for not informing consumers of the practice, a penalty the company is fighting against.