AT&T facing record $100 million fine over slowing down data speeds

On Wednesday, the Federal Communications Commission proposed fining AT&T $100 million, saying the wireless carrier did not properly inform customers with unlimited data plans that they might see a significant reduction in speeds if they exceed a certain amount of data during a billing cycle.

"Unlimited means unlimited," FCC Enforcement Bureau Chief Travis LeBlanc said in a statement. "The Commission is committed to holding accountable those broadband providers who fail to be fully transparent about data limits." This is the largest such fine proposal, Reuters reports, and AT&T has 30 days to respond to the charges.

The company says the FCC previously decided the practice of slowing down data speeds, known as throttling, was an adequate way to manage the network, and said it has been "fully transparent" with customers by disclosing its practices via text and written statements and "will vigorously dispute the FCC's assertions." A senior FCC official told Reuters these messages were not enough, as they did not say when the reductions in speed would take place or the impact.

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