Following an investigation, the FCC has identified that AT&T “severely slowed down” data speeds and accused the operator of misleading customers.
AT&T has denied any wrongdoing but faces the largest fine ever to be levied by the FCC.
"Consumers deserve to get what they pay for. Broadband providers must be upfront and transparent about the services they provide. The FCC will not stand idly by while consumers are deceived by misleading marketing materials and insufficient disclosure," said FCC chairman Tom Wheeler.
AT&T’s US rival Sprint has meanwhile announced that it would end its practice of throttling traffic.