AT&T's (T) Plan for 'Sponsored Data' May Come Under Regulatory Scrutiny

AT&T (NYSE: T) may not be able to run its sponsored-data service as planned, if the Federal Communications Commission has anything to say about it.

Monday, AT&T unveiled a plan which would allow companies like Netflix (Nasdaq: NFLX) and Google (Nasdaq: GOOG) to pay the data charges on their services. While it might initially be a win for both companies and consumers, the FCC is taking a different approach: fairness.

According to the WSJ, FCC Chairman Tom Wheeler said it was taking a wait-and-see approach to the new plan, but retained the right to intervene if the program became anti-competitive at one point. Wheeler said, We want to encourage innovation, with the full capability and legal authority to intervene in those circumstances where there are untoward impacts on competition and consumers.

California Democrat Anna Eshoo commented, The announcement of a sponsored data program by AT&T puts it in the business of picking winners and losers on the Internet, threatening the open Internet, competition and consumer choice.

The decision makes sense by the FCC; it isn't in the business of thwarting ideas before they have a chance to germinate. Still, one company paying for your data access does seem to have an essence of full-control about it, something smaller competitors don't want to hear.

Shares of AT&T are down about 2 percent Thursday.

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