Cable giant Comcast has locked horns with fiber-based communication services Level 3 Communications over streaming movies over its networks. While Level 3 hasn’t filed a formal complaint with the FCC, enough has happened in the dispute to catch their attention so the administration is looking into the matter. The initial foray will be to uncover the relevant facts before determining if any wrongdoing is at play.

The Wall Street Journal has a nicely written article on the entire affair,

On Monday, Level 3 complained that Comcast is now demanding a new recurring charge to deliver "online movies and other content" to Comcast customers. Level 3 operates a national Internet network and recently announced its deal to help Netflix Inc. stream and store its online movies and TV shows.

Level 3 complained Comcast was trying to set up a "toll booth" on the Internet and the action was a violation of FCC "net neutrality" principles the agency issued to discourage broadband service providers from discriminating against certain types of Internet traffic.

Comcast responded that Level 3 had "misportrayed" its actions and Level 3 wanted to be treated differently from other national Internet providers. Comcast said Level 3 wanted it to carry more Internet traffic without compensation.

The cry of “net neutrality” comes fittingly right before the FCC is poised to release a set of rules to help govern those policies. Comcast shot back that it is a common commercial and financial arrangement traditional to the industry—of course, the nuances of this may or may not set them right in the teeth of net neutrality issues if this happens to be the case. Especially if any “extra” Internet traffic Comcast would have to suffer was Internet traffic already paid for by its customers (just unused and therefore let to waste.)

Details on this case are sparse so far, but it looks like this is exactly a problem where net neutrality will become a real issue: disagreements between data/communication providers and Internet service providers like Comcast.