US FCC opens formal inquiry into use of data caps by telecom firms


FILE PHOTO: Signage is seen at the headquarters of the Federal Communications Commission in Washington, D.C., U.S., August 29, 2020. REUTERS/Andrew Kelly/File Photo

WASHINGTON (Reuters) - The Federal Communications Commission said Tuesday it is opening a formal inquiry into the use of data caps by telecom firms and how they impact consumers and competition.

"For most people in the United States, rationing their internet usage would be unthinkable and impractical. But, for millions, limitations on how much data they can use online is a constant concern," said FCC Chair Jessica Rosenworcel, noting caps "can cut off small businesses from their customers, slap fees on low-income families, and prevent people with disabilities from using the tools they rely on to communicate."

(Reporting by David Shepardson; Editing by Chizu Nomiyama)

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