Verizon will pay $4.5 billion to resolve claims that it throttles Wi-FI, according to a filing Friday in the U.S. District Court for the District of Columbia.
The Federal Communications Commission filed the claim in response to Verizon’s request for permission to offer Wi-fi hotspots.
Verizon’s case had been filed before the FCC.
Verizon said it had “failed to provide sufficient notice to the Commission regarding the alleged actions of its Wi-Fis,” which throttled internet connections.
The FCC has ordered Verizon to stop the practice and the FCC’s consumer watchdog, the Federal Trade Commission, has also called for the company to halt the practice.
The FTC alleges Verizon used a “network management” tool known as Network Manager that throttled Internet connections and slowed customers’ data speeds.
Verizon had previously agreed to pay the FTC $2.7 billion, but the agency says the company didn’t comply.
The FCC also alleged Verizon used the tool in an attempt to slow its own customers’ internet speeds.
Verizon said it would continue to fight the allegations.
Verizon Wireless said it plans to appeal the decision.