Ownership

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.

Sen. Richard Blumenthal (D-CT) is arguing that regulators should deal with an explosion of merger and acquisition activity by applying “greater vigilance and vigor” to the exercise of antitrust law.

The CEO of a small wireless carrier that offers consumers an alternative to the major cell phone companies says AT&T refused to run its ads on AT&T's DirecTV service as a way to suppress competition with the telecom giant's own wireless service. AT&T, which is fighting an anti-trust suit brought by the Department of Justice that aims to halt its $85 billion acquisition of Time Warner, now says it's changed the policy that kept Mint Mobile's ads off its pay TV service.

When the government broke up the telephone system in 1984, the fact that AT&T could count most citizens as customers and that it was arguably the best-run telephone company in the world was not deemed compelling enough to preserve its monopoly power. The breakup would unleash a wave of competition and innovation that ultimately benefited consumers and the economy. Facebook seems to be in a similar position today — only with far greater global reach than Ma Bell could have imagined. It is the most powerful communications and media company in the world. And that power is being abused.

Comcast has agreed to pay $155 million in back taxes to Oregon in order to settle a nine-year property tax dispute. Comcast will also drop its attempt to secure a tax break that OR created as part of a failed attempt to bring Google Fiber to the state. Gov Kate Brown (D-OR) announced the settlement with Comcast, noting that the legal battle "likely would have continued for many more years because several distinct and complex legal questions were in dispute." OR accepted the $155 million payment despite previously arguing that Comcast owed $200 million.