Cecilia Kang

TV Station Owners Rush to Seize on Relaxed FCC Rules

“The [Federal Communications Commission] has basically said: ‘Game on. We’re going to let you consolidate further than anyone had imagined,’” said Richard Greenfield, a media analyst at BTIG.

Consolidation of local broadcast stations could lead to more expensive fees for consumers as providers pass on ever-higher fees from broadcasters and content creators to subscribers. But to media companies, the mantra of late has been that bigger is better. For broadcast station companies in particular — including Sinclair, Fox and the Nexstar Media Group — owning more stations increases their power over cable companies, which pay to retransmit the stations. Fox’s motive for pursuing Tribune, which has more Fox affiliates than any other station owner, largely appears to be blocking a deal with Sinclair. It plans to form a joint venture with the Blackstone Group, an investment giant, in which Blackstone would provide the cash for a deal while Fox would provide its own television stations. If successful, Fox would then reduce its direct exposure to local television stations, while still holding on to a piece — and while stymieing a rival.

How Trump’s Pick for Top Antitrust Cop, Makan Delrahim, May Shape Competition

Makan Delrahim, the nominee for chief antitrust cop at the Justice Department, will have his confirmation hearing April 26.

If he is confirmed — and he is expected to be — his philosophies will help shape the corporate competition landscape for the next few years, at a time when mega-mergers like AT&T’s $85 billion acquisition of Time Warner. In an interview, Delrahim declined to address AT&T’s purchase of Time Warner, which is now undergoing regulatory review, or other large deals, saying he would “examine any matter according to evidence and economic analysis.” But he gave other hints of how he might act as the department’s top antitrust official. Specifically, Delrahim, a former lobbyist, said he would not go after a company just because it was big, and would do so only if there were violations of antitrust law. “Just like any other industry, if there is wrongdoing, we would investigate,” Delrahim said. But “federal laws should not be used as a fishing expedition by government.” He also intimated that he was skeptical of antitrust action against intellectual property rights holders. In a 2007 statement, he had warned that cases that blended intellectual property rights with antitrust enforcement could hamper innovation.

AT&T’s Words on Time Warner Deal Say ‘Underdog.’ Its Actions Speak Otherwise.

In Washington (DC), AT&T has painted itself as an underdog that needs to merge with Time Warner in a blockbuster $85 billion deal to compete with powerful cable companies. But in several cities and states, AT&T’s actions send a different message.

In Nashville and Louisville, AT&T has sued to make it harder for rival broadband providers to use utility poles. In Missouri, Tennessee and North Carolina, the company has pushed for laws that block municipal broadband providers. In San Francisco, AT&T has fought efforts to open up apartment buildings to more internet service providers. In other words, AT&T has positioned itself as the incumbent telecommunications juggernaut that has acted to hamper competitors locally. With its giant deal with Time Warner under review at the Justice Department, AT&T’s contrasting federal and local actions are glaring. While AT&T’s two-sided messaging follows a strategy used by many big companies, any evidence that the telecom company thwarts local rivals could make the deal review tougher and invite costly conditions, telecom antitrust experts said — even though they still expect the acquisition to be approved.

Chairman Pai Moves to Roll Back Telecom Rules

Federal Communications Commission Chairman Ajit Pai is taking the next steps to unwind Obama-era rules and other regulatory efforts that had restricted the abilities of telecommunication companies and broadcasters. With two items up for vote on April 20 that are expected to pass, Chairman Pai is carrying forward a swift Republican attack on telecom rules. The rollback will empower big telecom and media firms that have lobbied aggressively for deregulation, but consumer groups say it may also eventually put consumers at risk of higher prices and fewer options for services and media.

The two specific items to be voted on include a plan to make it easier for broadband providers to charge other businesses higher prices to connect to the main arteries of their networks. The action would clear the way for internet service providers like AT&T and CenturyLink to raise connection fees charged to hospitals, small businesses and wireless carriers in many markets where there is little or no competition for so-called backhaul broadband service. The other item up for vote is a move to ease the limit on how many stations a broadcast television company can own. The action is expected to invite more consolidation in that sector.

At FCC, Obama-Era Rules on Chopping Block

When Congress voted to overturn internet privacy rules in March, the swift action by Republican lawmakers sent a clear message: They were just getting started. The next target is network neutrality, which is the guarantee that all internet content is equally accessible. That could be followed by cuts in broadband subsidies for low-income households and a relaxation in rules preventing media consolidation in local markets.

Republican regulators and lawmakers have been waiting for this moment. Coordinating across the government, they are putting several telecommunications and technology policies created during the Obama Administration on the chopping block. Already, Federal Communications Commission Chairman Ajit Pai, who was appointed to the agency by President Barack Obama and named to lead it by President Trump, has begun chipping away at the low-income broadband subsidy and net neutrality rules created by his Democratic predecessor.

Congress Moves to Overturn Obama-Era Online Privacy Rules

Congress completed its overturning of the nation’s strongest internet privacy protections for individuals in a victory for telecommunications companies, which can track and sell a customer’s online information with greater ease. In a 215-to-205 vote largely along party lines, House Republicans moved to dismantle rules created by the Federal Communications Commission in October.

Those rules, which had been slated to go into effect later this year, had required broadband providers to receive permission before collecting data on a user’s online activities. The action, which follows a similar vote in the Senate, will next be brought to President Donald Trump, who is expected to sign the bill into law. A swift repeal may be a prelude to further deregulation of the telecommunications industry. Broadband companies immediately celebrated the House vote. They promised they would honor their voluntary privacy policies, noting that violations would be subject to lawsuits.

President Trump Appoints One of His Lawyers to Review Mergers

President Donald Trump named Makan Delrahim, a former government antitrust enforcer and corporate lobbyist, to lead the Justice Department’s review of mergers and acquisitions.

The appointment is being closely watched because companies across industries have been hoping that the new Republican administration will be more permissive with mergers. Delrahim, who serves as legal counsel to the president, will be quickly tested in his new position by AT&T’s $85 billion bid for Time Warner. The review of AT&T’s acquisition of Time Warner has drawn speculation because of promises President Trump made on the campaign trail to block the deal. Trump’s disdain for news coverage by CNN, which is owned by Time Warner, has raised questions over whether the president may try to influence the deal. Jeff Sessions, Trump’s attorney general, has promised to block any political influence on Justice Department decisions. Delrahim, whose nomination will go before the Senate for confirmation, is expected to take a more free-market approach to his job of antitrust enforcement, according to analysts. His style is expected to be in line with mainstream Republicans.

Congress Moves to Strike Internet Privacy Rules From Obama Era

Republican lawmakers moved to dismantle landmark internet privacy protections for individuals, the first decisive strike against telecommunications and technology regulations created during the Obama administration and a harbinger for more deregulation to come.

In a 50-to-48 vote largely along party lines, the Senate Republican majority voted to overturn the privacy rules, which had been created in October by the Federal Communications Commission. The move means a company like Verizon or Comcast can continue tracking and sharing people’s browsing and app activity without asking their permission. An individual’s data collected by these companies also does not need to be secured with “reasonable measures” against hackers. The privacy rules, which had sought to address these issues, were scheduled to go into effect at the end of 2017. The vote begins a repeal of those regulations. Next week, the House is expected to mirror the Senate’s action through the same Congressional Review Act procedure that allows Congress to overturn new agency rules. The House is expected to pass the resolution, which would then move to President Donald Trump to sign.

Tech Policy, Too, Is Undergoing a Sea Change

Tech policy has undergone a huge change under President Donald Trump, but it doesn’t seem that a lot of the changes are getting much attention, considering everything else the administration is doing.

In a normal news cycle, the rollback of Obama-era tech policies would get a lot more attention. But make no mistake, the changes coming in privacy, network neutrality and potentially many more tech regulations will be profound. Trump’s chief strategist, Steve Bannon, promised the “deconstruction of the administrative state,” and right away we’ve begun to see that happen. Under the new president we have a new chairman of the Federal Communications Commission, possibly a different standard for antitrust review on big mergers, and maybe lots of money for infrastructure that might seep into the tech economy. Here’s the biggest tech policy changes we’re expecting under President Trump.

How Tech Policies May Evolve Under Republicans and Trump

A Q&A with Senate Commerce Committee Chairman John Thune (R-SD).

With Republicans now in power across the government, Congress has moved aggressively toward undoing Obama-era tech policies. Network neutrality, the rule that ensures equal access to all websites, and broadband privacy rules are the first targets. Lawmakers also hope to play a bigger role than in the last administration on policies of particular concern to Silicon Valley and internet users, including driverless cars and the scaling back of Federal Communications Commission powers concerning broadband providers. Asked, "How do you want to change net neutrality rules?" Chairman Thune responded, "We’re open for business. We think a legislative solution is the best alternative and that the FCC under Chairman Tom Wheeler went too far with regulations that were overreaching and basically classified the internet as a public utility under a 1934 statute. Congress needs to be heard from, or you will have a constant back-and-forth on this issue depending on which party is in the White House."