Tough restrictions would be imposed on new company to promote online video competition
Under a deal with the U.S. Justice Department and Federal Communications Commission, Charter agreed to abandon for seven years several common industry practices that the government feared could threaten the growth of rival online video providers such as Netflix Inc. and Hulu. The company agreed not to impose data caps or charge broadband Internet customers based on data usage, practices that have riled customers.
Charter will also be required to build out its broadband access to two million homes, which would compel it to compete against other cable companies in some markets, according to a person familiar with the matter. That would be a significant move for an industry that has divvied itself up geographically.