Today’s Must-Read: Cable Operators Targeted in Justice Department Probe, Report Says

Jun 13, 2012  •  Post A Comment

"The Justice Department is conducting a wide-ranging antitrust investigation into whether cable companies are acting improperly to quash nascent competition from online video, according to people familiar with the matter," reports The Wall Street Journal. [Note: The WSJ is behind a firewall and may charge you to view its story.]

According to the article: "Investigators have … questioned Comcast Corp., Time Warner Cable Inc. and other cable companies about issues such as setting data caps, limits to the amount of data a subscriber can download each month, these people said."

The story notes: "In its cable TV probe, Justice Department investigators are taking a particularly close look at the data caps that pay-TV providers like Comcast and AT&T Inc. have used to deal with surging video traffic on the Internet. The companies say the limits are needed to stop heavy users from overwhelming their networks."

The article adds: "Internet video providers like Netflix have expressed concern that the limits are aimed at stopping consumers from dropping cable television and switching to online video providers. They also worry that cable companies will give priority to their own online video offerings on their networks to stop subscribers from leaving."

We suggest you click on the link to The WSJ, above, to read the entire story on this important issue.

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