July 2012

The Politics of Retransmission

The only thing new in the debate over the Cable Act—the 1992 legislation that established how cable and satellite companies negotiate over carriage of local TV stations—is the hype surrounding it. That's risen to a fever pitch, largely due to a well-coordinated effort on the part of cable and satellite companies to turn up the volume in Washington. So now we've come down to Congress. Both the House and Senate Commerce Committee have held hearings before, but now there's some real talk from lawmakers that it may be time to re-examine the Cable Act. That's where the debate stands and is bound to stand until at least next year. Meanwhile, the PR and lobby machines will continue to crank.

Google agrees EU antitrust deal outline

Google has agreed the outlines of a settlement with Europe’s top competition authority, in a deal that would spare the US search giant from formal antitrust charges for allegedly abusing its dominance.

In a big test for how Google handles the mounting regulatory scrutiny it is facing worldwide, the company offered to make significant changes to its business to avoid a lengthy EU legal battle and the threat of multibillion-dollar fines. While the deal must still be finalized, the talks have cleared an important hurdle that could save Google from the sort of decade-long fight in Brussels that dogged the likes of Microsoft and Intel. The details of Google’s concessions are still unclear, but they address four specific concerns laid out publicly in an earlier warning by the EU to Google. The breakthrough came after Google said it would in principle extend the remedies it had offered to make for PC-based search to cover mobile search services too.

Unrestrained access to Internet pledged

The UK’s leading Internet service providers have committed to providing unrestrained access in the latest attempt to establish universal principles of “net neutrality.”

Nine of the UK’s service providers, including BT, British Sky Broadcasting and TalkTalk, have signed a code that requires full and open internet access without discrimination towards providers of applications and services. The Broadband Stakeholder Group, which facilitated the agreement, said that a similar code had so far been signed only in Norway. The new UK code will include a process for complaints that would be referred to Ofcom, the telecoms watchdog.

Dem senators ask tech giants Facebook, Google, Apple for cybersecurity support

Sens. Jay Rockefeller (D-WV) and Dianne Feinstein (D-CA) are asking the chief executives of Facebook, Google, Amazon, Apple and other major tech companies to back their revised cybersecurity bill.

In letters sent to more than a dozen tech CEOs, the two senators note the latest version of the bill includes "voluntary provisions on critical infrastructure protection" and updates to measures aimed at improving information sharing about cyberthreats between government and industry. The move is aimed at drumming up industry support ahead of possible Senate action on the bill later this week. In the letter, Sens Rockefeller and Feinstein noted the outreach made to tech industry groups during the crafting of the cybersecurity bill. The technical language included in the bill was largely developed in partnership with "your industry," the two senators wrote.

Majority Leader Reid would be 'dumbfounded' if GOP blocked cybersecurity bill

Senate Majority Leader Harry Reid (D-NV) said he would be "dumbfounded" if Republican members blocked cybersecurity legislation from moving to the floor for debate.

Responding to whether he had the 60 votes needed to consider Sen. Joe Lieberman's (I-CT) cybersecurity bill, Sen Reid said he didn't know, but noted "we have a good count of Democrats." Sen Reid added that former Republican defense officials have told him "it's the most important issue since the nuclear age began," and he committed to allowing consideration of amendments relevant to cybersecurity. "I've said many, many times, amendments will be allowed that are relevant to this issue. There's no reason we can't have a debate on this," Sen Reid told reporters. "So if [Republicans are] going to stop this, I am dumbfounded why."

US sees no trade sanctions violations by UN agency

A preliminary U.S. assessment has concluded that the U.N.'s World Intellectual Property Organization (WIPO) did not violate U.N. sanctions when it sent technical equipment to North Korea and Iran, the State Department said. "Our own preliminary assessment - but we are still seeking more information from WIPO - is that there doesn't appear to have been a violation of U.N. sanctions," said department spokeswoman Victoria Nuland. She noted that the transfers had been referred to U.N. sanctions committees for a final determination and said the United States was seeking more information from WIPO as it investigated whether any U.S. laws had been violated.

SNL Kagan: Some Carriers Are Willing to Ditch Your Favorite Channels

SNL Kagan analysts are predicting that carriage agreements will split into two different types over the coming years.

The first type is exemplified by the quiet pact inked by Comcast and Scripps during the last week—a traditional agreement made notable by its inclusion of over-the-top content on Comcast's Xfinity service, a high watermark among MSO-created on-demand interfaces. The agreement was cordial and genially celebrated by both sides as fair and equitable, and similar to the easygoing deal between the cable operator and Disney earlier this year. The second type will be more like the hair-pulling brawls that played out over the last few weeks—Viacom v. DirecTV, Hearst v. Time Warner Cable, AMC v. Dish Network. "I think all of the operators are in the same boat," Kagan analyst Derek Baine said. "They are just taking different routes, with Dish apparently willing to give up some networks for good to keep programming costs low."

NAB to Court: FCC Fails to See Serious Harm in Online Posting

In the latest parry in the duel between the Federal Communications Commission and broadcasters over the FCC's new online filing requirement for TV station public files, the National Association of Broadcasters again asked a D.C. Federal Court to block the Aug. 2 effective date of that mandate.

In reply comments on its request for an emergency stay of the rules by the court until after it has ruled on broadcasters' appeal, NAB said that the FCC, in its opposition to the stay, had yet again failed to recognize the potential harm to competition of having to publicize detailed information on political ad rates in an easily accessible database. NAB says that the FCC does not dispute that an industry wide posting of pricing would violate antitrust laws were it not compelled by the FCC, but that the FCC says those laws can be "disregarded" because price information is already readily available. But NAB argues that such a contention contradicts the FCC's own justification for moving the public files online, which was to dramatically increase access to that information.

Google seeks campaign money by touting Net as prime info source

Google has some news. Voters in the U.S. get their information about candidates and issues via the Internet. That's not really news, but Google would like you to know that one third of people nationwide see campaign ads on the company's YouTube video sharing service that they haven't seen on TV. Google's "Four Screens to Victory" campaign makes the case that the television screen is decreasing in importance, citing a study that one third of likely voters had not watched TV in the last week. On the other hand, the three Internet-connected screens -- smartphone, tablet, and PC -- are becoming increasingly influential in how people get information about elections. Google's research showed that, unsurprisingly, 68 percent of voters use the Internet as their primary source for information on issues and candidates.

Senate Commerce Panel To Wade Into Net Sales Tax Debate

The Senate Commerce Committee appears set next week to wade into debate over whether Congress should pass legislation authorizing states to require online retailers to collect sales taxes from their out-of-state customers. The committee is tentatively scheduled to hold a hearing on Aug. 1 that would examine calls for legislation that would close a loophole left from a 1992 Supreme Court ruling that found states cannot require retailers to collect sales taxes from customers in states where those companies have no store or other physical facility, a committee aide said Tuesday. The ruling applied to catalog retailers at the time but has since been exploited by online stores.

Senate Majority Leader Harry Reid (D-NV) said that he would try to bring up the measure once it had the needed support. Sen Reid said the proposal, from Senate Majority Whip Dick Durbin (D-IL) and Sen. Mike Enzi (R-WY), did not have the necessary 60 votes yet. But, he added, “I have told them the minute we get 60 votes, I will be happy to do everything I can to get that matter on the floor.”