February 2010

[Commentary] In the wake of Citizens United, preserving an open, neutral Internet may be our best hope for counterbalancing the deluge of corporate money that will now influence elections.

With low barriers to entry, an open Internet can enable all sorts of political speech -- it can provide room for lively political debate, help individuals connect and mobilize around causes, and allow small donors to aggregate their funds. But phone and cable companies, emboldened by the blowout corporate victory in the Citizens United Supreme Court decision, are saying that the landmark case confirms that Net Neutrality -- the rule that says phone and cable companies can't block your e-mails or slow down your favorite Websites -- violates their First Amendment rights. In the words of Michael Wendy, formerly with the US Telecom Association, the Supreme Court's ruling should "put the FCC on guard."

[Aparna Sridhar is a Media Policy Attorney at Free Press]

Appearing on C-SPAN's The Communicators, Kyle McSlarrow, head of the National Cable and Telecommunications Association, said he isn't convinced that Google will actually follow through with its plans to provide super-speedy broadband service given its lackluster track record for building networks. McSlarrow also said that Google may have a tough lesson to learn when it comes to regulation. He said Google is a "very sophisticated company" that has become a real force in Washington. "My one disappointment is that they don't perceive to the extent that I wish they did that when you try to regulate everyone else -- they just haven't learned the lesson that eventually they will come for them too," he said. "But unfortunately, that will happen."

As many companies have cut newsroom budgets they are also scaling back on another of their civic duties: legal battles to gain access to government information. But while many regional newspapers are choosing not to spend money on lawyers -- or are asking them to work pro bono -- another trend has developed that paints an opposite story, say press advocates and First Amendment lawyers. Some big companies, like Hearst and The Associated Press, have been quietly ramping up their legal efforts, by doing more of the work in-house -- and saving costs by not hiring outside lawyers -- and being more aggressive in states where they can recoup legal fees and at the federal level, which also allows plaintiffs in such access cases to sue for legal fees when they win.

The pace and size of acquisitions in the technology industry will return to "robust" levels this year after the value of deals dropped by more than 50 percent in 2009, according to a report by PricewaterhouseCoopers.

Hardware, Internet and chip companies will be especially active buying smaller businesses, Todson Page, a partner with the consulting firm's transaction services group, said. There were 107 technology takeovers in the U.S. last year, with a total value of $36 billion, PricewaterhouseCoopers said. That compares with 195 deals, totaling $77.2 billion, in 2008. Acquisitions will probably return to 2008 levels this year, spurred by low interest rates, the strength of acquirers' balance sheets and valuations that make companies more willing to sell, the firm said.