This could be interesting. The Wall Street Journal is reporting that the U.S. Justice Department is investigating possible antitrust violations from cable providers attempting to stifle competition from Netflix, Hulu, and other online video providers.
Citing “people familiar with the matter” the WSJ says that the investigation stems from cable company activities such as setting data caps to limit the amount of content subscribers can download each month. Such limits could bring streaming activity from Netflix and others to a screeching halt, forcing users to purchase VOD content from cable providers if they want to watch movies.
Netflix has already voiced concern that it and other online video providers are the targets of the cable company data caps and other measures aimed at steering consumers towards the cable companies’ offerings.
What do you think the results from this government probe will be? Do you think cable providers have been acting improperly to quash competition from Netflix?