The Federal Communications Commission (FCC) has proposed to hit the Hilton hotel chain with a $25,000 fine for "its apparent obstruction of an investigation" into the blocking of
Wi-Fi connections for consumer devices. The FCC has also advised it is considering another fine against M.C. Dean, a provider of Wi-Fi services, for performing similar Wi-Fi blocking actions at the Baltimore Convention Center on a regular basis, this time costing the company $718,000.
For both companies, the FCC has received complaints that each would attempt to make Wi-Fi hotspots and other wireless networks owned by other nearby users unusable, in order to force them to pay for the venue's Wi-Fi services. In the case of
Hilton, the FCC received a complaint last year about an Anaheim, California hotel blocking hotspots, and requiring users to pay a $500 fee to use Hilton's own Wi-Fi network.
After receiving other complaints, Hilton was issued a letter of inquiry by the FCC, demanding to know basic company information, corporate policies, and other details relating to how it manages Wi-Fi at Hilton properties across the United States. Hilton failed to provide this information over the course of the year, stalling the investigation and prompting the FCC to take action.
M.C. Dean
was found by the FCC's enforcement bureau to be blocking personal hotspots of convention visitors, charging up to $1,100 for Wi-Fi access. Last year, the complaint came from a trade show hotspot provider, which discovered its equipment was being actively blocked by M.C. Dean in the Baltimore Convention Center, with the FCC later visiting the location multiple times and discovering for themselves blocking was taking place.
During the investigation, it was discovered M.C. Dean's equipment had an "auto block mode" that tried to block consumer hotspots at venue when detected, even affecting the connections of passing vehicles outside the venue. The FCC was left with no choice but to fine M.C. Dean with violating Section 333 of the Communications Act for interfering with wireless connections.
The FCC has taken a more
active stance against Wi-Fi blocking over the last two years, with M.C. Dean's fine being the third major enforcement action by the commission. Last year, Marriott was
fined $600,000 for Wi-Fi blocking, with Smart City Holdings hit for $750,000 in August for similar convention center activities.