Ownership

The Latest Round of FTC Competition and Consumer Protection Hearings

The Federal Trade Commission this week held another set of hearings on Competition and Consumer Protection in the 21st Century. The hearings and public comment process this Fall and Winter will provide opportunities for FTC staff and leadership to listen to experts and the public on key privacy and antitrust issues facing the modern economy. The hearings are intended to stimulate thoughtful internal and external evaluation of the FTC’s near- and long-term law enforcement and policy agenda.

Paul Allen, Microsoft co-founder

Paul Allen, the co-founder of Microsoft and a prominent leader of both business and philanthropy in the Seattle area, stamped his mark on the city’s economy and culture as well as its skyline as he pursued a wide range of passions from science to sports.

The U.S. Needs a New Policy Framework for an Open Internet Ecosystem

[Analysis] In a new article for the Georgetown Law Technology Review, I seek to jumpstart a conversation about how to shape an Internet ecosystem that will serve the public interest. First, let me lay out the rationale for a new, unified policy framework for an open Internet: 1) Lack of Competition/Incentive and Ability to Discriminate, 2) Collection of and Control over Personal Data, 3) Lack of Transparency, and 4) Inadequacy of Current Laws and Enforcement.

FCC Issues Hearing Designation Order for Tribune Media Company and Sinclair Broadcast Group

On June 28, 2017, Sinclair Broadcast Group and Tribune Media Company filed applications seeking to transfer control of Tribune subsidiaries to Sinclair. Sinclair and Tribune have amended their applications several times thereafter, in an attempt to bring the transaction into compliance with the Commission’s national television multiple ownership rule, as well as the public interest requirements of the Communications Act.

Statement of Chairman Ajit Pai On Sinclair/Tribune Transaction

Based on a thorough review of the record, I have serious concerns about the Sinclair/Tribune transaction. The evidence we’ve received suggests that certain station divestitures that have been proposed to the FCC would allow Sinclair to control those stations in practice, even if not in name, in violation of the law. When the FCC confronts disputed issues like these, the Communications Act does not allow it to approve a transaction. Instead, the law requires the FCC to designate the transaction for a hearing in order to get to the bottom of those disputed issues.

T-Mobile and Sprint Pitch Their Case Before Congress

Last week, T-Mobile and Sprint officially filed their public interest statement on their merger to the Federal Communications Commission (FCC).

Verizon to end location data sales to brokers

Verizon is pledging to stop selling information on phone owners’ locations to data brokers, stepping back from a business practice that has drawn criticism for endangering privacy. The data has allowed outside companies to pinpoint the location of wireless devices without their owners’ knowledge or consent. Verizon said that about 75 companies have been obtaining its customer data from two little-known CA-based brokers that Verizon supplies directly — LocationSmart and Zumigo.

AT&T-Time Warner and a Sea Change for the Internet

This has been, perhaps, one of the most important weeks in the history of the Internet. On June 11, the repeal of net neutrality consumer protections went into effect, laying the regulatory groundwork for large Internet service providers to (transparently) favor some (their own) content. On June 12, a court approved a huge combination of content with a major internet service provider. We can do the math.

Comcast, in 2nd Try, Offers $65 Billion Cash for 21st Century Fox

Comcast announced an offer worth $65 billion for the bulk of 21st Century Fox’s businesses, setting up a showdown with the Walt Disney Company for Rupert Murdoch’s media empire. The all-cash bid by Comcast, the largest cable company in the United States, came a day after a federal judge approved a merger between AT&T and Time Warner. Comcast executives had awaited the decision in that case before mounting their bid for 21st Century Fox.

AT&T’s Time Warner Takeover Wins Judge’s Approval in Defeat for Justice Dept

A federal judge approved the blockbuster merger between AT&T and Time Warner, rebuffing the government’s effort to block the $85.4 billion deal, in a decision that is expected to unleash a wave of takeovers in corporate America. Judge Richard J. Leon of the United States District Court in Washington said the Justice Department had not proved that the telecommunication company’s acquisition of Time Warner would lead to fewer choices for consumers and higher prices for television and internet services. 

Stand By Me: The Consumer Welfare Standard and the First Amendment

In America we want institutions that make our democracy strong—that seems like a no brainer. So as one line of thinking goes, antitrust enforcers should step beyond consumer welfare and think about what would be good or bad for our democracy, or for values like the free speech the First Amendment protects. The suggestion is that perhaps enforcers should broaden the consumer welfare lens to think about effects on democracy or expression. I’d like to focus my remarks today on two responses to that suggestion.

AT&T Chief Says Hiring Michael Cohen as Consultant a ‘Big Mistake’

Randall L. Stephenson, AT&T’s chief executive, said in a staffwide memo  that the company had made a “big mistake” by hiring President Trump’s personal lawyer, Michael Cohen.

T-Mobile/Sprint: When 3 + 4 = 3

On April 29, 2018, T-Mobile US and Sprint announced that the boards of the two companies had agreed to enter into an agreement to merge. The companies said they hope to close the deal in the first half of 2019. The most obvious argument in favor the deal?

Facebook apologies aren't enough. The whole Internet needs a privacy overhaul.

[Commentary] Our current privacy framework no longer works. While the hearings this month offered little in terms of solutions, they did put a spotlight on a problem that’s been glaringly obvious for years: Consumers have little control over their data online. We need a privacy framework that gives consumers control over their own data. Companies across the board must be required to get express consent from their users prior to sharing their data. At the outset, consumers should be asked to respond to a simple statement that they do or do not want their personal data shared.

Is Facebook a 'Bug' in Our Democracy? Part 3

[Commentary] We are in a brave new world. Facebook and 'Big Tech' have contributed to the erosion of our democratic discourse. We need to have these new titans assume responsibilities on par to the influence they have over our information ecosystem. We need to address this bug in our democracy. Short-term policy solutions can help curb some of Facebook’s harmful effects, but the larger task before policymakers -- and all of us -- is to critically examine the long-term health of our democratic discourse.

Is Facebook a 'Bug' in Our Democracy? Part 2

[Commentary] Is it time to recognize that Facebook, and ‘Big Tech’ at large, may be a bug in our democracy? In Part 1, I examined how the Facebook-Cambridge Analytica story illustrates the harmful effects of “Surveillance Capitalism.” The erosion of our privacy is contributing to the declining health of our democratic discourse.  Moreover though, Facebook has facilitated the proliferation of hate speech, fake news, and international electoral interference.

The Silence of the Bought

[Commentary] The big Internet service provider gate-keepers may have bought the silence of Congress, but they cannot buy the silence of the people. We know there is overwhelming popular support for an open internet with strong net neutrality rules.  But we have to demonstrate this support and the power behind it.  We must make our voices heard.  Contacting Congress now on the CRA is vital—your Senators, of course, but your House members, too.  Tell them your vote in the next election depends on their vote now to restore net neutrality. 

Louis Brandeis: A Man for This Season

In the early years of the 20th Century, Louis Brandeis was America’s most influential advocate for antitrust enforcement but his contributions to antitrust have been much debated ever since.

U.S. Supreme Court wrestles with Microsoft data privacy fight

Supreme Court justices wrestled with Microsoft’s dispute with the US Justice Department over whether prosecutors can force technology companies to hand over data stored overseas, with some signaling support for the government and others urging Congress to pass a law to resolve the issue. Microsoft argues that laws have not caught up to modern computing infrastructure and it should not hand over data stored internationally. The Justice Department argues that refusing to turn over easily accessible data impedes criminal investigations.

FCC's Inspector General Looks Into Changes That Benefited Sinclair

In April 2017, the chairman of the Federal Communications Commission, Ajit Pai, led the charge for his agency to approve rules allowing television broadcasters to greatly increase the number of stations they own.

Democratic Reps Seek Documents From Attorney General on Decision to Challenge AT&T-Time Warner

A group of Democratic Reps are seeking documents from Attorney General Jeff Sessions relating to the Justice Department’s decision to file a lawsuit to block AT&T’s planned merger with Time Warner. They are interested in whether the decision was in any way impacted by President Donald Trump’s disdain for CNN, a unit of Time Warner. Makan Delrahim, the chief of the Antitrust Division, denies that the lawsuit was influenced by the White House.

Disney to Buy Fox. Was The Repeal of Net Neutrality A Factor?

On the same day the Federal Communications Commission voted to repeal its 2015 network neutrality rules, the Walt Disney Company announced a deal to buy most of 21st Century Fox. The all-stock transaction is valued at roughly $52.4 billion. If approved, Disney would go from being “a juggernaut to being a megajuggernaut.” Disney hopes the acquisition of Fox’s sports and entertainment content will give it new market power in the growing online distribution market (streaming services). The FCC’s move is not unrelated.

FCC Opens Review of National Broadcast TV Ownership Cap

The Federal Communications Commission adopted a Notice of Proposed Rulemaking initiating a comprehensive review of the national television audience reach cap, including the so-called UHF discount used by broadcasters to determine compliance with the cap. The national cap limits entities from owning or controlling television stations that, together, reach more than 39 percent of the television households in the country. The Commission’s last review of this rule occurred when the video marketplace looked very different and most Americans had fewer options for watching video programming.

FCC Adopts Restoring Internet Freedom Order, Ends Net Neutrality Protections

In a Declartory Ruling and two Orders, the Federal Communications Commission reversed its 2015 Open Internet rules.

Declaratory Ruling