AT&T, Verizon Laugh At The FCC's Last-Minute Attempt To Crack Down On Zero Rating
from the way-too-little,-way-too-late dept
So we've noted several times how the FCC's decision to avoid banning zero rating when crafting net neutrality rules was a bad idea, as it opened the door wide to all manner of net neutrality violations -- provided incumbent ISPs were just creative about it. And like clockwork, companies like AT&T, Verizon and Comcast quickly got to work exempting their own content from usage caps, while penalizing competitors (and non-profits or educational services). Meanwhile companies like Sprint and T-Mobile began charging users a steep premium unless they wanted games, video and music throttled by default.Unlike many other countries (Japan, The Netherlands, Norway, India), the FCC decided to avoid banning these kinds of practices as part of neutrality rules, instead saying they'd step in and act on a "cases by case" basis should ISP behaviors prove anti-competitive. But as ISPs increasingly made it very clear they were using arbitrary usage caps as anti-competitive weapons against competing streaming video services, the FCC did nothing. That is, until the agency reached out to AT&T and Verizon last month, formally accusing both companies of violating net neutrality.
It's a strange, belated decision by an FCC that, by most analyst accounts, is about to be defunded and defanged. Both the GOP and incoming Trump administration have clear they see no role for the agency as a consumer or competition watchdog. With FCC boss Tom Wheeler having just stepped down, both AT&T and Verizon are well aware the current FCC is a lame duck. As such both companies responded to the FCC's inquiries this week with the legal equivalent of laughter.
As it stands, AT&T now zero rates its DirecTV Now streaming service so it doesn't count against AT&T user wireless caps. Verizon does the same thing with its Go90 streaming video service. In both instances, their wireless customers are giving every incentive to avoid using competing services. But as you might imagine, neither company is willing admit that they're using their control over the conduit to give their content an unfair market advantage. And both were quick to proclaim that if companies don't like it, they can be put on the same equal market footing if they're willing to pay AT&T and Verizon a premium:
"Other video providers can be expected to respond to [AT&T’s Data Free TV] either by sponsoring their own content with AT&T and/or other wireless providers or by finding different ways to improve and differentiate their offerings and generate consumer value,” (wrote AT&T executive Joan Marsh)."And both AT&T and Verizon equally made it clear that they realize the emperor has no clothes, and will not be able to enforce this almost comically-belated attempt to actually protect net neutrality:
"Any doubts on that score were put to rest when two FCC Commissioners, both of whom will remain in office after the imminent change of administration, criticized this investigation and warned the Bureau against unlawfully usurping core policymaking powers that only the Commission may exercise," AT&T wrote. "Those Commissioners also observed that whatever judgment the Bureau purports to pass on this program before January 20 will very likely be reversed shortly thereafter."So while it's nice that the FCC finally realized that usage caps and zero rating can be used as anti-competitive weapons, this all comes too little, too late for broadband consumers, startups, and other competitors that rely on a healthy, open internet. The ultimate irony being of course that if net neutrality is to be demolished (which will likely come in the form of a new bill professing to do the exact opposite), these concerns over zero rating will be the very least of net neutrality's problems in the new year.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: fcc, net neutrality, tom wheeler, zero rating
Companies: at&t, verizon
Reader Comments
The First Word
“Spectrum Competition
If other video providers don't like it, they're all free to build national wireless data distribution networks and unfairly leverage them as they see fit.Oh, wait. No. No, they're not allowed to do that at all.
Subscribe: RSS
View by: Time | Thread
Spectrum Competition
Oh, wait. No. No, they're not allowed to do that at all.
[ link to this | view in chronology ]
Competition Freedom
How does America survive without Potomac bureaucrats directing our retail & wholesale food system ?? There would be chaos, price gouging,food shortages, and supermarket monopolies across the nation.
Socialist central planning & regulation is always the best economic choice for consumer services & products. Open markets, free competition, voluntary buyer/seller choices & contracts must be restricted by wise and noble government bureaucrats (??)
[ link to this | view in chronology ]
Re: Competition Freedom
There many laws regarding food. One federal agency, the Food and Drug Administration, even has "Food" in its name.
[ link to this | view in chronology ]
Re: Re: Competition Freedom
They are not written in a way that grants a lot of monopolies like the way the FCC does it.
Even so, I recognize the the FDA has done a shit job of it as well. They are easily corrupted just like the FCC.
[ link to this | view in chronology ]
Re: Re: Re: Competition Freedom
[ link to this | view in chronology ]
Re: Re: Re: Re: Competition Freedom
[ link to this | view in chronology ]
Re: Competition Freedom
And that looks like it will remain unchanged over the next four years.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Re:
But not the voting citizens whom sit idle while watching them lie, cheat, and steal everything using the system?
If you select a thief to safeguard your property... some might say that you are more to blame than the thief for that loss...
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Ahem. /rant
[ link to this | view in chronology ]
Re:
Makes up for all the idiotic IP laws they keep exporting/enforcing world-wide ;)
[ link to this | view in chronology ]
Re: Re:
I doubt that, as the usual choice for a country that can foresee internal troubles is to pick an external war to unify the population. May you line in interesting times is a curse for good reasons, such times are usually terrifying to live through, and only interesting with the hindsight of history with which to to evaluate them.
[ link to this | view in chronology ]
Re: Re:
My words. In a sense, the US is bracing for something we already are deep into (generally speaking). Don't misunderstand me, we are gonna laugh even though we are utterly screwed too because we could see it coming so we won't be shocked.
[ link to this | view in chronology ]
DirecTV app as a proxy/relay
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Re:
Not much, because Congress has granted this industry exemptions from some of the laws the FTC uses. Blame Congress.
[ link to this | view in chronology ]
Re: Re:
1. Accept regulation to get exemptions.
2. Lobby to get rid of the regulations.
3. Keep the exemptions.
4. Profit!
[ link to this | view in chronology ]
Those options vanished as more ISPs started offering unlimited plans.
[ link to this | view in chronology ]