Ownership

The two events in Washington (net neutrality June 11 and AT&T/Time Warner ruling June 12) could lead to further consolidation of wireless, cable and content giants, public-interest advocates say. And they fear that behemoths like AT&T might someday prioritize their own TV shows and other content over rivals’. Internet service providers (ISPs) deny that they would engage in such a practice — yet consumer watchdogs worry that people would have little legal recourse if they did.

Two pivotal developments this week could dramatically expand the power and footprint of major telecom companies, altering how Americans access everything from political news to “Game of Thrones” on the Internet.

Disney’s offer to buy 21st Century Fox. CVS’s bid for Aetna. T-Mobile’s proposed merger with Sprint. The path for these blockbuster deals and others could be transformed in an instant on June 12, when a federal judge is expected to issue his opinion on the government’s effort to block AT&T’s merger with Time Warner. It is one of the most influential antitrust cases in decades, enthralling Hollywood, Silicon Valley and Madison Avenue. If the merger is blocked, some executives are likely to slim down their deal aspirations.

Tech companies know that they have a race problem. But their efforts to address it have so far yielded little. Facebook Inc. says that 3 percent of its U.S. workforce is black, up from 2 percent in 2014, while black workers in technical roles stagnated at 1 percent. Only 2 percent of Google's workers are black, a figure that has remained static for the past three years. The Alphabet inc unit's efforts to increase that have sparked an internal backlash, with one former employee suing because of perceived discrimination against white and male candidates. Among 8 of the largest U.S.

On May 14, Federal Communications Commission Chairman Ajit Pai responded to several Members of Congress over recent reforms of the FCC's broadcast ownership rules.  "I must respectfully decline your request not to implement any changes made to the media ownership rules in our 2017 Order on Reconsideration," he wrote. "The FCC has a statutory duty to ensure that our broadcast ownership rules keep up with changes in the media marketplace, and there is no reason to further delay the implementation of 2017 reforms that were themselves unreasonably delayed.

As many as 14 million Facebook users who thought they were posting items that only their friends or smaller groups could see may have been posting that content publicly, the company said. According to Facebook, a software bug, which was live for 10 days in May, updated the audience for some user’s posts to “public” without any warning. Facebook typically lets users set the audiences who get to see posts; that setting is “sticky,” which means it remains the default setting until manually updated.

Apparently, the US Department of Justice is examining how the proposed merger between T-Mobile and Sprint could affect prices for smaller wireless operators.  A T-Mobile and Sprint merger would eliminate competition between the two carriers that have been the dominant players in selling network access to wireless companies that often serve pre-paid or price-conscious consumers, and could lead to higher prices for those users.

Chinese phone maker Huawei said it has never collected or stored Facebook user data, after the social media giant acknowledged it shared such data with Huawei and other manufacturers. Huawei, a company flagged by US intelligence officials as a national security threat, was the latest device maker at the center of a fresh wave of allegations over Facebook’s handling of private data. Chinese firms Huawei, Lenovo, Oppo and TCL were among numerous handset makers that were given access to Facebook data in a “controlled” way approved by Facebook, according to Facebook.

Apparently, Members of Congress have begun scrutinizing Google’s relationship with China’s Huawei Technologies—roping another Silicon Valley giant into Washington’s escalating digital cold war with Beijing. The review—of a facet of Google’s Android operating system partnership with Huawei—comes after lawmakers questioned Facebook about its data partnerships with Huawei and three other Chinese electronics makers. Facebook said it would wind down the Huawei deal by the week’s end.

Legislation to rein in Facebook’s practices — and even stiff penalties from the Federal Trade Commission — are starting to look like a real possibility, even in a Congress typically slow to move on tech issues.  Lawmakers are pointing to two main vehicles emerging in Congress.  One is the Consent Act, a bill sponsored by Sen Ed Markey (D-MA) that would require Facebook and other tech companies such as Google to get explicit permission from users before doing anything with their personal information.