Netflix’s objection to the proposed AT&T/DirecTV merger drew a response yesterday from AT&T, which said that “economic realities” prevent it from degrading online videos delivered over its Internet service.
AT&T’s filing with the Federal Communications Commission is heavily redacted, eliminating details about Netflix’s agreement to pay AT&T for a direct network connection, as well as various other AT&T documents. AT&T urged the FCC to reject a merger condition proposed by Netflix, which said AT&T should not be allowed to charge Netflix and other content providers for network connections. But many of the details cited by AT&T in support of its argument were shielded from public view.

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