“The new law not only ends our ability to offer California customers such free data services but also similarly impacts our customers in states beyond California,” the company said in a statement.
California’s law bans broadband providers from exempting certain content from counting toward a consumer’s data cap.
AT&T defended the practice, arguing that it “delivered significant benefits and saved consumers money.”
Supporters of the California law argue that AT&T offered the data allowance exemptions to steer customers to video services it owns.
“Since many people are concerned about going over their data caps, this program gives AT&T’s video services an advantage over competing online video services,” Barbara van Schewick, a professor at Stanford Law School, said in a statement.