Verizon Communications threatened to sue Netflix, after the video streaming service displayed a congestion notice when users attempted to watch videos.
The telecommunications giant sent Netflix a cease-and-desist letter after the message, "the Verizon network is crowded right now," appeared on users' screens, accusing Verizon of being behind the network congestion.
"There is no basis for Netflix to assert that issues with respect to playback... are attributable solely to the Verizon network," Verizon wrote, as quoted by BBC News.
Verizon demanded Netflix remove the congestion notice and threatened to file a lawsuit because of the incident. Verizon general counsel Randal Milch warned Netflix chief lawyer David Hyman that the notice implied false accusations that could damage the company's image.
Verizon was concerned about losing customers for its FiOS broadband service and insisted for Netflix to provide the number of Netflix customers who saw the notice, as well as the specific dates and times.
"Failure to provide this information may lead us to pursue legal remedies. This potential harm is broader than only the experience of a customer viewing Netflix content. The impression that Netflix is falsely giving our customers is that the Verizon network is generally 'crowded' and troublesome," Millch added.
Milch cited different factors that could cause congestion on the Internet such the Wi-Fi and device settings, connections between multiple networks, and in-home wiring.
It was uncertain whether Netflix would comply with the cease-and-desist letter. Netflix spokesman Joris Evers told Businessweek that the company just wanted to be more transparent to its subscribers to provide the best service, and one way to do it was to let subscribers know that the slowdown on the streaming service was because of the congestion on the provider's network.
"This is about people not getting what they paid for from their Internet service providers. Netflix is transparent, (Verizon) is shutting that down," Evers said in an email to Businessweek.
