Netflix won’t count against iiNet broadband caps in Australia

So much for net neutrality: Netflix has struck a deal with Australia’s iiNet Internet service provider to exempt its traffic from iiNet’s broadband caps. This means that iiNet subscribers will be able to watch as much Netflix as they want, without the fear that their viewing will lead to any overage charges.

But it’s also bad news for any upstart trying to compete with Netflix, and it runs counter to the company’s long and very public defense of net neutrality. Netflix said that it is going to launch on March 24 in Australia and New Zealand. As part of the announcement, iiNet revealed that it will exempt any Netflix traffic from its customers’ monthly bandwidth quotas.