German Court Cans Deutsche Telekom's Speed-Curbing Plan

Law360, New York (November 01, 2013, 8:25 PM ET) -- A German court on Wednesday halted Deutsche Telekom AG's plans to drastically reduce Internet speeds for customers with flat-rate packages when they exceed predetermined data limits, saying consumers who purchase these plans expect stable browsing capabilities.

Siding with the consumer group Verbraucherzentrale NRW, the Cologne regional court deemed clauses in contracts for flat-rate plans that provide for a reduction in Internet browsing capabilities to be invalid.

Because the average consumer understands “flat rate” to mean a fixed price for a certain access speed without any limitations...
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