U.S. sues AT&T over data throttling

The U.S. government sued AT&T Inc (NYSE: T) on Tuesday, alleging the No. 2 U.S. wireless carrier sold consumers unlimited data plans but would reduce their Internet speeds once they exceeded a certain amount of data.

According to the Federal Trade Commission, the throttling of Internet feeds is deceptive. In some cases, AT&T allegedly throtteld data speeds by nearly 90 percent, according to a Reuters report.

AT&T is accused of allowing longtime customers to buy unlimited data plans, in some cases where new customers were not offered the plans, and then unilaterally changing the terms.

AT&T called the allegations "baseless" and said the practice was needed to manage network resources.

Read more from Reuters.