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July 2017

Steve Bannon Wants Facebook and Google Regulated Like Utilities

Apparently, tech companies like Facebook and Google that have become essential elements of 21st-century life should be regulated as utilities, top White House adviser Steve Bannon has argued. Bannon’s push for treating essential tech platforms as utilities pre-dates the Democratic “Better Deal” that was released this week. “Better Deal,” the branding for Democrats’ political objectives, included planks aimed at breaking up monopolies in a variety of sectors, suggesting that anti-monopoly politics is on the rise on both the right and left.

Bannon’s basic argument, as he has outlined it to people who’ve spoken with him, is that Facebook and Google have become effectively a necessity in contemporary life. Indeed, there may be something about an online social network or a search engine that lends itself to becoming a natural monopoly, much like a cable company, a water and sewer system, or a railroad.

We tested apps for children. Half failed to protect their data.

[Commentary] More than 50 percent of Google Play apps targeted at children under 13—we examined more than 5,000 of the most popular (many of which have been downloaded millions of times)—appear to be failing to protect data. In fact, the apps we examined appear to regularly send potentially sensitive information—including device serial numbers, which are often paired with location data, email addresses, and other personally identifiable information—to third-party advertisers. Over 90 percent of these cases involve apps transmitting identifiers that cannot be changed or deleted, like hardware serial numbers—thereby enabling long-term tracking.

We suspect that most of the developers whose apps fail to protect data do not have nefarious intent, but rather fail to configure their software properly or neglect to scrutinize practices of the third-party advertisers they rely upon to generate revenue. When building an app, developers import ready-to-use code from many different third-parties, including advertising companies. While this code “reuse” results in time savings and fewer errors, app developers likely do not realize that they are liable for all code included in their apps, regardless of whether or not they were the ones who wrote it.

[Serge Egelman is research director of the Usable Security & Privacy group at the International Computer Science Institute and an affiliated researcher at the University of California, Berkeley Center for Long-Term Cybersecurity]

Senate Resurrects Cloud Storage Protections Bill

A bipartisan bill, the ECPA Modernization Act, has been introduced that would update communications privacy law to protect cloud storage. It is the latest effort by the Senate to address the issue after the House voted overwhelmingly to protect older data. In the previous Congress, Senate Judiciary Committee chairman Charles Grassley (R-IA) pulled an Electronic Communications Privacy Act update bill from the committee's markup agenda after "poison pill" amendments threatened to expand the bill into areas that neither of its co-sponsors wanted it to go. That baseline bill, which passed the House 419 to zero, would have updated the Electronic Communications Privacy Act to provide protections for cloud storage by requiring a probable cause warrant for accessing information in the cloud and extending the protections to emails and other content stored over 180 days (currently no warrant is required to access those).

Senate panel to vote on FCC nominees on August 2

On August 2, the Commerce Committee will hold confirmation votes for three nominees to the Federal Communications Commission. panel will vote on former Democratic Commissioner Jessica Rosenworcel and Brendan Carr, a Republican. And Ajit Pai, the current Republican FCC chairman, will be considered for another five-year term. The committee will also be voting on the confirmation of David Redl, a GOP Hill staffer who President Trump nominated to lead the National Telecommunications and Information Administration.

New FCC Nominations Wrinkle

The Senate Commerce Committee has a vote on Federal Communications Commission nominations planned for Aug. 2 that will include two Republicans (FCC Chairman Ajit Pai and General Counsel Brendan Carr) and one Democrat (former Commissioner Jessica Rosenworcel).

Also on deck: National Telecommunications and Information Administrator nominee David Redl. But Democrats may want a GOP commitment to set up smooth confirmation for the next Democratic FCC opening, whenever current-FCC Commissioner Mignon Clyburn departs. In multiple scenarios - such as not giving Carr the second full term he’s been nominated for or only confirming Carr and Rosenworcel now - "Commissioner Clyburn's replacement could be paired with Carr or Pai," a Democratic aide said, adding that Senate Commerce Committee Chairman John Thune (R-SD) and Senate Majority Leader Mitch McConnell (R-KY) want to confirm Pai, Carr and Rosenworcel together. Sen. Ed Markey (D-MA) confirmed interest in securing GOP commitment on the next Democratic commissioner confirmation, although he said he's heard nothing from Commissioner Clyburn on when she may leave. "I want to just make sure that there's a guarantee, you know, that the next Democrat is in, so we have to work out some kind of formula to guarantee that is a part of whatever" nominations plans are made, said Sen. Markey. Chairman Thune said there's "been no formal engagement" with him yet.

America’s Competitive TV and Internet Markets

In 1992, 98 percent of American homes relied on cable to watch subscription TV. There were no satellite TV options or telco-provided TV options. There certainly weren’t internet streaming options because, among other reasons, broadband wouldn’t be launched for another four years. It would be a full decade after that before a video streaming service would be made available. 25 years later, the TV marketplace is undeniably different. Technologies like cloud DVRs, apps, and TV Everywhere have transformed the way we watch television. Many of the best content creators are choosing TV to tell their stories. But perhaps most noticeably, the marketplace has become robustly competitive.

According to the FCC, 99 percent of U.S. homes have access to at least three multi-channel subscription TV services. Cable’s historic dominance has dissipated into a market where 54 percent of homes with multichannel video services are cable video customers, 34 percent are satellite video customers, and 12 percent are telco TV customers. Not so coincidentally, as fast broadband networks have become ubiquitous throughout America, additional pay TV competition has emerged from new players who use the internet to deliver programming. The dominant player is Netflix, a premium streaming service that has become an entertainment powerhouse. It has 50.9 million U.S. subscribers, more than the entire cable industry. The next largest video service provider, AT&T/DirecTV has less than half that, 25 million. And Comcast, the largest cable video provider has 22.5 million customers.

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