Comcast Corporation, the largest internet services and cable TV provider in the United States, has settled the class action suit filed against it for delaying data transfers of large music and movie files despite promising an uninterrupted internet access.
The United States District Court for the Eastern District of Pennsylvania has approved the settlement, according to which Comcast has agreed to pay $16 million in compensation. The settlement also applies to 7 other lawsuits filed across the country pertaining to the data throttling case.
In a statement of approval issued by the court over the internet, the Philadelphia based company said that "These lawsuits claim that Comcast promised unlimited Internet access but impaired use of some P2P file-sharing traffic on its internet network. Comcast denies these claims, but has revised its management of P2P and is settling to avoid the burden and cost of further litigation."
Interestingly, the ISP, which had received a warning from the US Federal Trade Commission to change the way it manages its internet traffic last year, had argued that the steps taken by the company to throttle P2P file transfer speeds were required to stop people, who were using P2P clients such as uTorrent for downloading large media files, from slowing down the internet for other users.
Quite ironic isn't it that this is happening in the US. No one has yet managed the same thing in the UK where claims of unlimited downloads and up to 8mbps speeds are rampant. The worst a service provider can expect is a slap on the wrist.