Federal Communications Commission Chairman Tom Wheeler said yesterday that he has no plans to investigate Netflix for throttling its own video streams, despite Netflix's critics calling for an investigation.
Netflix acknowledged last week that it reduces video quality on most mobile networks to help users stay under their data caps and avoid data overage charges. Opponents of net neutrality rules that prevent Internet service providers from throttling online content claimed Netflix is being a hypocrite, since the video company supported the FCC's ban on throttling.
Netflix critics acknowledge that the FCC's net neutrality or "Open Internet" rules apply only to Internet service providers and not content providers like Netflix. Nonetheless, they insist that the company should be investigated. That isn't going to happen, Wheeler said in a Q&A with reporters after yesterday's monthly FCC meeting.
"We do not regulate edge providers," Wheeler said. An "edge provider" is what the FCC calls online content providers like Netflix.
Wheeler was also asked if he thinks Netflix's actions are "pro-consumer," but did not answer directly. "It is outside of our jurisdiction," he said. "It is not an Open Internet issue what they're doing. I'm going to leave it at that."
Separately, the FCC has been examining data caps and "zero-rating," a practice in which ISPs exempt some content from data caps. Wheeler said yesterday that the review is still in progress.
Wheeler's discussion of Netflix was spurred by statements made by Internet service providers and Republican FCC commissioners. The American Cable Association, a cable lobby group that represents small and medium-sized companies, last week called on the FCC to "initiate a Notice of Inquiry into the practices of edge providers and how these companies can threaten the openness of the Internet," and to consider issuing new rules for content providers.
FCC Commissioner Michael O'Rielly argued in a speech on Tuesday that Congress, the Federal Trade Commission, and the FCC should all investigate Netflix. O'Rielly acknowledged that Netflix throttling itself does not violate the net neutrality rules, but suggested that Netflix might have broken other commission rules by withholding information about its own throttling practices in filings to the FCC. Netflix denied making any false statements to the FCC, and O'Rielly's office could not provide any evidence of wrongdoing when contacted by Ars.
Republican Commissioner Ajit Pai also criticized Netflix's throttling at yesterday's FCC meeting, bringing up the issue during an unrelated discussion on new privacy rules. Pai and O'Rielly often cast the lone dissenting votes on actions supported by Wheeler's Democratic majority, so it isn't surprising that Wheeler hasn't joined them in blasting Netflix.