Under the California law, which a federal judge said last month could legally be enforced, AT&T said it is not allowed to "sponsor" data for customers who also use its wireless services.Ĭalifornia's net neutrality law came in the wake of the Trump administration's decision to undo an Obama-era net neutrality rule at the Federal Communications Commission. Net neutrality is the idea that internet service providers should act neutrally toward the content they host, and abstain from speeding or throttling delivery speeds for certain sites or services. "A patchwork of state regulations, many of them overly restrictive, creates roadblocks to creative and pro-consumer solutions." "A state-by-state approach to 'net neutrality' is unworkable," AT&T said in a statement announcing the data cap change.
Much like with digital privacy laws, which currently only exist in a couple states, the tech industry fears a patchwork of state laws will make it more difficult to operate, especially for smaller players. The announcement highlights a key concern the industry has with state actions impacting the internet sector.
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