Resolution: The HTTP connection parameter for data compression was exposed from BW 5.6 onwards.
From BW version 5.6, you can specify the compression parameter in the Advanced tab of the HTTP Connection Shared Resource or in the bwengine.tra file. Refer to BW 5.6 document --> Palette Reference --> HTTP Palette --> HTTP Connection for detailed information.
For previous version, we can write our own java code to implement HTTP output compression. Find the attached example for reference.