U.S. lawmakers seek review of broadband data caps

US lawmakers discussed Wednesday the practice of charging Internet customers by how much data they consume, pitting Web firms such as Netflix against cable and telecom companies in a debate over whether such billing policies are anticompetitive.

The practice known as data caps, or usage-based pricing, was among a broad set of issues debated in the House Communications and Technology Subcommittee hearing Wednesday on the "Future of Video."

Two Democratic lawmakers said Congress should examine whether major wireless carriers and cable companies are stifling the growth of online video services like Netflix Inc and Hulu by limiting the amount of content Internet subscribers can download each month.

"When you couple limited broadband competition with a strong desire to protect a legacy video distribution business, you have both the means and motivation to engage in anticompetitive behavior," David Hyman, Netflix's general counsel, testified.

The Justice Department is investigating whether cable operators are improperly suppressing competition from Internet companies and online video services, according to people familiar with the matter.

Read the full Reuters story -here-

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