April 2016

Justice Department Allows Charter's Acquisition of Time Warner Cable and Bright House Networks

The Department of Justice announced a settlement that permits Charter Communications to complete its $78 billion proposed acquisition of Time Warner Cable and its related $10.4 billion acquisition of Bright House Networks from Advance/Newhouse Partnership. The settlement forbids the merged company, referred to as “New Charter,” from entering into or enforcing agreements that could make it more difficult for online video distributors (OVDs) to obtain video content from programmers. The Chairman of the Federal Communications Commission will circulate an order that would approve the combination of Charter, TWC and BHN subject to conditions.

The settlement further provides that New Charter will not be able to avail itself of other distributors’ most favored nation (MFN) provisions if they are inconsistent with this prohibition. The settlement also prohibits New Charter from retaliating against programmers for licensing to OVDs. The department said that it would continue to closely monitor developments in the industry and would vigorously enforce compliance with the proposed settlement to ensure that New Charter does not use the influence it will have as one of the nation’s largest multichannel video programming distributors (MVPDs) to restrict or discourage programmers from licensing their content to OVDs. The department said it also examined whether the merger would allow New Charter to become an unavoidable gatekeeper for Internet-based services, including OVDs, that rely on a broadband connection to reach consumers. The order circulated by the FCC Chairman would impose an obligation on New Charter to make interconnection available on a non-discriminatory, settlement-free basis to companies that meet basic criteria. In light of the remedy sought by the FCC Chairman, the department elected not to pursue duplicative relief in its own lawsuit.

FCC Chairman Statement on Charter/Time Warner/BHN Merger

Based on imposed conditions that will ensure a competitive video marketplace and increase broadband deployment, an order recommending that the Charter/Time Warner Cable/Bright House Networks transaction be approved has circulated to the Commissioners. As proposed, the order outlines a number of conditions in place for seven years that will directly benefit consumers by bringing and protecting competition to the video marketplace and increasing broadband deployment. If the conditions are approved by my colleagues, an additional two million customer locations will have access to a high-speed connection. At least one million of those connections will be in competition with another high-speed broadband provider in the market served, bringing innovation and new choices for consumers, and demonstrate the viability of one broadband provider overbuilding another.

In conjunction with the Department of Justice, specific Federal Communications Commission conditions will focus on removing unfair barriers to video competition. First, New Charter will not be permitted to charge usage-based prices or impose data caps. Second, New Charter will be prohibited from charging interconnection fees, including to online video providers, which deliver large volumes of Internet traffic to broadband customers. Additionally, the Department of Justice’s settlement with Charter both outlaws video programming terms that could harm online video distributors (OVDs) and protects OVDs from retaliation– an outcome fully supported by the order I have circulated. All three seven-year conditions will help consumers by benefitting OVD competition. The cumulative impact of these conditions will be to provide additional protection for new forms of video programming services offered over the Internet. Thus, we continue our close working relationship with the Department of Justice on this review. Importantly, we will require an independent monitor to help ensure compliance with these and other proposed conditions. These strong measures will protect consumers, expand high-speed broadband availability, and increase competition.

Libraries Support Lifeline as Important Step on the Path to Digital Equity

When Benjamin Franklin created the first lending library in America almost three hundred years ago, he established an institution committed to letting loose the transformational power of knowledge. To this day, public libraries stand committed to the principle that information should be available to all, regardless of where you live, how much you earn, or when you were born. Increasingly libraries provide some of that information online, through free access to e-books, original documents like the New York Public Library’s high-definition scan of Thomas Jefferson’s Declaration of Independence, and even software that you can borrow virtually through the Kansas City Public Library. All of these efforts depend on affordable, accessible Internet service. The recently announced Lifeline reforms will provide support to low-income individuals who struggle to balance an Internet subscription with other monthly necessities. This home broadband access is a crucial step toward bridging the digital divide.

President Obama Stresses Need to Monitor Data in Fighting Terrorism

The trans-Atlantic debate over digital privacy rights versus the surveillance needs of intelligence agencies was put under a spotlight April 25, as President Barack Obama called for continued access by law enforcement officials to thwart terrorism, while some European privacy advocates urged greater restraint. “I want to say this to young people who value their privacy and spend a lot of time on their phones: The threat of terrorism is real,” President Obama said, speaking at a trade show in Hanover, Germany. “I’ve worked to reform our surveillance programs to ensure that they’re consistent with the rule of law and upholding our values, like privacy — and, by the way, we include the privacy of people outside of the United States,” he added.

President Obama’s message comes at a sensitive time, as cities like Brussels and Paris are still recovering from recent terrorist attacks. But his words are unlikely to slow down European efforts to expand people’s control over their digital lives. Europe is at the heart of a global debate over the way companies like Google and Facebook, as well as national intelligence agencies, handle people’s digital data. Some regulators in the 28-member bloc have called on companies and governments, particularly that of the United States, to comply with the region’s tough privacy regulations.

Spies see obstacles for calculating surveillance of Americans

Federal intelligence officials would face multiple obstacles in calculating the number of Americans whose data is swept up in a large surveillance regime meant to target foreigners, the nation’s top spy said April 25. Intelligence agents will “do our best” to come up with a way to roughly calculate how many Americans are included in the spying, National Intelligence Director James Clapper said. Still, he suggested a public estimate might not be possible and that "any methodology we come up with will not be completely satisfactory to all parties."

The comments could be troubling for privacy advocates and a bipartisan collection of members of Congress, who asked Director Clapper’s office to come up with an estimate in a letter recently. “Even a rough estimate of the number of US persons impacted by these programs will help us to evaluate” how pervasive the collection of Americans’ data is, 14 members of the House Judiciary Committee wrote to Director Clapper. Federal surveillance law includes additional protections to safeguard the privacy of Americans over foreign citizens, who do not enjoy the same rights under the Constitution.