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By Brad Tuttle
September 13, 2016
Jonathan Nackstrand—AFP/Getty Images

Netflix says that broadband Internet data caps are unreasonable, unfair, and serve no legitimate purpose in the marketplace. The streaming video giant is asking the FCC to pressure Internet providers to stop charging customers based on how much Internet they use, so that people can—among other things—stream as much Netflix as they want, without paying extra.

Comcast and other home Internet providers have slowly been instituting these caps—or “data thresholds,” as they prefer to call them—in select markets around the country. The plans allow Internet providers to charge customers more when they surpass a monthly data allotment.

Naturally, consumers have complained mightily about the plans, which can result in surprising fees being tacked onto monthly bills. After coming under widespread criticism, Comcast decided to raise data threshold levels in some markets as of June 1.

But any plan that discourages consumers from using the Internet freely is obviously bad for consumers, and it’s especially bad for a streaming service like Netflix. So it’s understandable why Netflix reached out to the FCC recently concerning data caps, as Ars Technica reported.

In its filing sent to the FCC, Netflix wrote:

Quite simply, “Data caps and UBP raise the cost of using the the connections that consumers have paid for, making it more expensive to watch Internet television,” Netflix wrote.

Read Next: Why Comcast Keeps Insisting Its Data Caps Aren’t Caps—and That They’re Fair

Comcast has argued that data caps are fair because they charge more to people who use more data. But Netflix says, “Data caps on fixed-line networks do not appear to serve a legitimate purpose.”

Internet providers don’t incur significantly higher costs due to customers using more data, and the data caps do not help lower congestion and improve Internet speeds. So instead of serving a legitimate purpose, data caps seem to be a simple money grab.

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Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.

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Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.

Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.

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