FCC may intervene over AT&T’s new Sponsored Data program

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Published 9 Jan 2014

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AT&T likely hoped its new Sponsored Data plan would capture the attention of cost-conscious consumers. Instead, it has caught the eye of FCC Chairman Tom Wheeler.Speaking at CES 2014, Wheeler said he would look closely at AT&T’s new program that promises to give customers access to free data in exchange for using the sponsor’s services or apps. The sponsoring company would cover the costs of the data then used by these customers.

“My attitude is: let’s take a look at what this is, let’s take a look at how it operates,” Wheeler said. “And be sure, that if it interferes with the operation of the internet; that if it develops into an anticompetitive practice; that if it does have some kind of preferential treatment given somewhere, then that is cause for us to intervene.”

As enticing as free data would be for consumers, it would be fairly easy for this program to become anticompetitive. The program could end up unfairly promoting the apps and services of those companies that have the cash to buy data, while shutting out smaller companies and startups that don’t.

[Via The Verge]