MEDIA & SOCIETY
Disney to Deter Children From Some Areas of Its Web Sites (NYT)
Children's TV Programming and Public Interest Obligations
of Broadcasters (FCC)
An Online Peek at Your Politics (NYT)
A County Restricts Cell Phones While Driving (NYT)
ECOMMERCE
What Price Fairness? (NYT)
Tough New Rules Don't Faze Chinese Internet Start-Ups (NYT)
INTERNET
ICANN Pursuing Slowest-Possible Expansion Of Net Domain Names (SJM)
Ties Taint Carnivore Review (USA)
Key Firms Back Bill on Web Privacy (WP)
MERGERS
Regulators Widen AOL Review to Probe Role of Set-Top Boxes in
Internet Access (WSJ)
AOL Fires Back at Disney Over Opposition to Deal (WP)
New Prospects Seen in Europe For EMI Deal (NYT)
AT CONGRESS
Community Radio Faces 11th-Hour Battle On Hill (WP)
Congress Approves a Big Increase In Visas
for Specialized Workers (NYT)
Commerce Markup Session (House)
MEDIA & SOCIETY
DISNEY TO DETER CHILDREN FROM SOME AREAS OF ITS WEB SITES
Issue: Media & Society
In an agreement with the Council of Better Business Bureaus, the Walt Disney
Internet Group has pledged to do a better job of ascertaining the age of
children who register for interactive activities on Disney sites and will
prohibit children under 13 from certain areas, including chat rooms, where
inappropriate banter and images can be found. The council found that
Disney's sites asked for new members' ages in three categories: 12 or
younger, 13 to 17, and 18 or over. It said such categories could "encourage
children to provide inaccurate information" to get access to more adult
fare. Because children in chat rooms may divulge information that can
identify them, enforcement of the age restrictions is important to protect
their privacy, officials of the Council of Better Business Bureaus said.
Kathryn Montgomery, president of the Center for Media Education, an advocate
of regulation of child- oriented Web sites, said that calling yesterday's
agreement with Disney "self-regulation" only told half of the story. "It
isn't just self regulation -- it's self-regulation within a regulatory
context," she said. "Had we not passed the law to protect children's
privacy, it's doubtful that there would be effective self- regulation."
[SOURCE: New York Times (C4), AUTHOR: John Schwartz]
(http://www.nytimes.com/2000/10/04/technology/04WEB.html)
(requires registration)
CHILDREN'S TV PROGRAMMING AND PUBLIC INTEREST OBLIGATIONS OF BROADCASTERS
Issue: Television
The Federal Communications Commission will hold an en banc hearing on
Monday, October 16, 2000, examining the public interest obligations of
television broadcasters. The hearing will commence at 9:00 a.m. at the
Commission's headquarters, 445 12th Street, S.W., Washington, D.C. The en
banc hearing will be included as part of the record that the Commission is
developing as it considers the public interest obligations of broadcasters
as they transition to digital television. Once the record has been fully
developed, the Commission will examine the steps it may take to ensure that
television licensees continue to serve the needs of their communities and to
address the needs of children in the digital television era. The hearing is
open to the public, and seating will be available on a first come, first
served basis. All interested persons are invited to attend. A transcript
of the hearing will be available ten (10) days after the event on the FCC's
Internet site.
Mass Media Bureau contacts: Susanna Zwerling (202) 418-2600; Kim Matthews
(202) 418-2120; Julie Barrie (202) 418-2120; Jamila Bess Johnson (202) 418-2600.
[SOURCE: FCC]
(http://hraunfoss.fcc.gov:8888/edocs_public/attachmatch/DOC-206252A1.txt)
AN ONLINE PEEK AT YOUR POLITICS
Issue: Privacy
[Op-Ed] Two former Federal Election Commission employees have launched a Web
site that allows visitors to search for political donors by zip code,
allowing us to see if and to who our neighbors give cash to. Bernsten
describes the feeling of surfing the site as "peering inside the voting
booth, the sanctum sanctorum of democratic freedom." Bernstein feels the
site and others like it could have a chilling effect on donations. "The
operators of the site are perfectly within their rights to post all this
information. Federal laws do more than permit disclosure of such political
donations: they require it. Full disclosure, I realize, makes it easier to
enforce the individual donor limit. But surely a less public system -- one,
say, under which the parties have access to one another's donor lists --
would serve that purpose."
[SOURCE: New York Times (A31), AUTHOR: Fred Bernstein, NYU Law School]
(http://www.nytimes.com/2000/10/04/opinion/04BERN.html)
(requires registration)
A COUNTY RESTRICTS CELL PHONES WHILE DRIVING
Issue: Safety
Suffolk County (NY) [I get homesick just typing it] is believed to be the
first county in the country to adopt a ban on hand-held cell phone use while
driving. The legislation prohibits the use of a cell phone while driving
unless it is equipped with an earpiece or can act like a speakerphone,
leaving the driver's hands free. Emergency calls are exempted from the ban.
People are allowed to dial while driving, and to hit a button to answer
incoming calls, as long as they do not hold a phone. A number of cities have
adopted similar bans or are considering them -- as do 13 nations including
Britain, Israel, Italy and Australia.
[SOURCE: New York Times (C30), AUTHOR: Tina Kelley]
(http://www.nytimes.com/2000/10/04/nyregion/04CELL.html)
(requires registration)
ECOMMERCE
WHAT PRICE FAIRNESS?
Issue: Ecommerce
[Op-Ed] A look at "dynamic pricing," Amazon's practice of charging different
customers different prices for movies --based on customer characteristics,
some fear. Krugman predicts that dynamic pricing will not go away -- despite
recent customer backlash -- and is bound to become a major consumer and
perhaps political issue. Dynamic pricing is a new version of an old
practice: price discrimination. It uses a potential buyer's electronic
fingerprint -- his record of previous purchases, his address, maybe the
other sites he has visited -- to size up how likely he is to balk if the
price is high. If the customer looks price-sensitive, he gets a bargain; if
he doesn't he pays a premium. The practice could actually be good for the
economy however, especially in industries with high fixed costs, but low
marginal costs (like in book publishing). But the Robinson-Patman Act may
outlaw the practice if it is found to be anticompetitive. "One thing is
clear," Krugman concludes, "The next battle in the eternal conflict between
equity and efficiency may well be in cyberspace."
[SOURCE: New York Times (A31), AUTHOR: Paul Krugman]
(http://www.nytimes.com/2000/10/04/opinion/04KRUG.html)
(requires registration)
TOUGH NEW RULES DON'T FAZE CHINESE INTERNET START-UPS
Issue: International
Chinese Internet entrepreneurs and their foreign backers expressed only mild
concern about the potential impact of new rules published on Monday
that require all Internet companies to apply for licenses in the next two
months. The new rules say that companies must abide by laws that effectively
ban direct foreign investment in the industry and that Internet
companies will be held responsible for content carried on their Web sites.
The rules also reiterate government bans on various forms of Internet
content, including anything deemed subversive, pornographic or related to
cults. Companies violating the new rules could face fines up to US $120,000,
or be shut down. People in the Internet business say most companies are
already set up to avoid China's foreign ownership rules and that they
exercise self-censorship to avoid conflicts with the government. Still, the
new rules, if strictly enforced, could complicate things for Internet
companies. "That's not a situation that any major foreign investor would
want to be associated with," said Duncan Clark, a telecommunications
consultant based in Beijing, "let alone a domestic Internet content provider
that would be seen as turning in its customers."
[SOURCE: New York Times (C2), AUTHOR: Craig Smith]
(http://www.nytimes.com/2000/10/04/technology/04NET.html)
(requires registration)
INTERNET
ICANN PURSUING SLOWEST-POSSIBLE EXPANSION OF NET DOMAIN NAMES
Issue: Internet
[Commentary] Yesterday, ICANN announced that it received almost four dozen
applications for new top-level Internet domains (TDL) to complement .com,
.org .net, each with a fee of $50,000. ICANN oversees the Domain Name
System, which is the address system for the Internet. No one knows for sure
how many new TLDs will result from this selection process, but many in the
Internet community guess the number will be around three. The small number
of new names and the high price of applying leads Gillmore to suggest that
ICANN "has been almost totally co-opted by large commercial and trademark
interests" and "is pursuing the slowest-possible expansion of TLDs." Jamie
Love, director of the Consumer Project on Technology (www.cptech.org), said:
"The new TLD applications illustrate how limited the current domain space
is, and how rich it could be...ICANN now needs to move ahead to permit
greater choice and more innovations in the TLD name space."
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
(http://www.mercurycenter.com/svtech/columns/front/docs/dg100400.htm)
TIES TAINT CARNIVORE REVIEW
Issue: Security/Privacy
[Editorial] The Justice Department has ordered an independent review
intended to settle public fears about Carnivore, a computer system that can
tap into e-mail. USAToday, however, has concerns about the independence of
the selected reviewer. The Illinois Institute of Technology Research
Institute (IITRI) has accepted limitations on its research required by the
Justice Department, including the power to censor its final report. In
addition, the high-tech branch of the research institute, which will perform
the analysis, receives 80% of its funding from the federal government. The
paper also articulates concerns about government connections to the
individual staff members named to work on the review. USAToday concludes
that the "decision to hire political insiders combined with its taste for
secrecy has only increased concerns that the Clinton administration is not
interested in an independent review."
[SOURCE: USAToday (27A), AUTHOR: USAToday Editorial Staff]
(http://www.usatoday.com/usatonline/20001004/2717405s.htm)
KEY FIRMS BACK BILL ON WEB PRIVACY
Issue: Privacy
America Online and Hewlett-Packard are throwing their weight behind a
congressional bill that would protect Internet users' privacy. But consumer
advocates say the legislation does not go far enough. The AOL and
Hewlett-Packard representatives told members of the Senate Commerce, Science
and Transportation Committee that they support a bill introduced by John
McCain (R-AZ), the committee chairman, and John F. Kerry (D-MA). Under
the bill, World Wide Web sites must give online visitors conspicuous notice
of their privacy policies and an "opt out" method for the company's efforts
to collect data about users. It also gives the Federal Trade Commission the
authority to enforce these requirements. Consumer advocates argues that most
people just don't have the time or expertise to locate a company's privacy
policy and to check the appropriate boxes to stop the data collection.
"Privacy notices without other substantive rights operate more like warning
labels or disclaimers than actual privacy safeguards," said Marc Rotenberg,
executive director of the Electronic Privacy Information Center. At the end
of yesterday's hearing, Sen McCain announced that he will convene more
hearings on the online privacy issue in January.
[SOURCE: Washington Post (E01), AUTHOR: Ariana Eunjung Cha]
(http://washingtonpost.com/wp-dyn/articles/A5310-2000Oct3.html)
MERGERS
REGULATORS WIDEN AOL REVIEW TO PROBE ROLE OF SET-TOP BOXES IN INTERNET
ACCESS
Issue: Mergers
The Federal Trade Commission and the Federal Communications Commission are
expanding their review of AOL and Time Warner merger to include set-top
boxes, the gateway for receiving the Internet on television sets. Regulators
have started to scrutinize the role of the boxes as a potential bottleneck
in the delivery of Internet services because if a company can control the
box, it can control what gets through the cable line and onto the television
screen. Interactive television, which could include e-mail, e-commerce,
instant messaging and even telephone service, would flow through set-top
boxes. The intense scrutiny came after the companies told the FCC that an
agreement to open their cable lines to rival Internet-service providers
didn't include set-top boxes, although the companies did say Time Warner
Cable is "always willing to discuss business arrangements with potential
providers of any other services." Some of the issues raised in the merger of
Time Warner and AOL never have been addressed in previous mergers, and the
review sometimes shifts to accommodate what regulators learn along the way.
[SOURCE: Wall Street Journal (B8), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB970611993562388136.htm)
(Requires subscription)
See Also:
THE FUTURE OF THE INTERACTIVE TELEVISION SERVICES MARKETPLACE
Issue: Mergers
Friday, October 6, 2000
9:00 a.m. in 2123 Rayburn House Office Building.
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a second day of hearings on Friday, October 6, 2000 at 9:00 a.m.
in 2123 Rayburn House Office Building. The hearing will be entitled: "Part
II: The Future of the Interactive Television Services Marketplace: What
Should Consumers Expect?" Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)
EU OBJECTION TO AOL MERGER RESOLVED
[SOURCE: Washington Post (E01), AUTHOR: William Drozdiak]
(http://washingtonpost.com/wp-dyn/articles/A4638-2000Oct3.html)
AOL FIRES BACK AT DISNEY OVER OPPOSITION TO DEAL
Issue: Mergers
America Online specifically addresses complaints raised by Disney in its
latest filing with the FCC. "A handful of competitors--most conspicuously
the Walt Disney Co.--have argued that AOL Time Warner will harm competition
by discriminating against nonaffiliated program providers . . . these
contentions lack a grounding in fact," AOL and Time Warner wrote in the
Sept. 29 letter to the FCC. Until this letter, AOL has refrained from naming
or trading blows with its rivals. But some believe the letter is a sign of
AOL's worries about the merger. "This is to some degree a sign of AOL's
increasing nervousness about getting approval," said Harold Feld, associate
director of the Media Access Project, a D.C.-based nonprofit public interest
law firm that has expressed concern over the merger. "The ultimate thing to
do when you're being pressured by regulators is to say, 'Our competitor is
trying to seek a competitive advantage in the regulatory arena, and you
regulators should not fall for that,' " Feld said. Disney has been locked in
a bitter feud with AOL and Time Warner since at least May, when Time Warner
temporarily blocked ABC programming for 3.5 million of its cable television
subscribers because of a contract dispute.
[SOURCE: Washington Post (E01), AUTHOR: Alec Klein]
(http://washingtonpost.com/wp-dyn/articles/A4148-2000Oct3.html)
NEW PROSPECTS SEEN IN EUROPE FOR EMI DEAL
Issue: Mergers
It was just last week when the European commission recommended that European
Union countries reject the Time Warner-EMI deal because it would reduce the
number of worldwide music distributors to four from five and could severely
reduce competition in the industry. This week, European regulators are
considering approving the proposed $20 billion combination of the music
division of Time Warner and the EMI Group
into a joint venture, a development that would remove the last major barrier
in Europe to the acquisition of Time Warner by America Online. The change of
heart comes in the wake of new concessions proposed by Time Warner and EMI,
which included an offer to sell the Virgin record label, with stars ranging
from the Spice Girls to David Bowie. Before this week, the companies had
offered to sell some smaller record labels as well as EMI's European
distribution and logistics operations. The deal between Time Warner and EMI
is considered important both in its own right and in connection with Time
Warner's much bigger combination with America Online because by merging
Warner Music and EMI, the company would control one of the world's biggest
music distributors and wield enormous power with artists and retailers on
both sides of the Atlantic.
[SOURCE: New York Times (C1), AUTHOR: Edmund Andrews]
(http://www.nytimes.com/2000/10/04/technology/04ONLI.html)
(requires registration)
See Also
EMI PROPOSES TO SELL VIRGIN LABEL, GIVING EU CONCESSIONS IT REQUIRES
[SOURCE: Wall Street Journal (A21), AUTHOR: Brandon Mitchener And Philip
Shishkin]
http://interactive.wsj.com/articles/SB970576990115952520.htm
(Requires subscription)
AT CONGRESS
COMMUNITY RADIO FACES 11TH-HOUR BATTLE ON HILL
Issue: Radio
In January, the Federal Communications Commission approved the establishment
of low-power radio service that would be licensed to churches, schools and
community groups. These new stations, which are intended to help diversify
the airwaves rapidly being bought up by a few large companies, may never get
the chance to broadcast. This summer, the House passed a bill that would
significantly restrict the number and licensing of the stations and in
September, Sen. Rod Grams (R-MN) introduced a companion bill in the Senate.
While both measures are
touted as a compromise between the FCC and lawmakers who would seek to kill
low-power stations outright. low-power advocates say the House and Senate
bills are not compromises at all. "It is a bill to kill low-power FM," said
Andrew Schwartzman, president of the Media Access Project. As the 106th
Congress nears its conclusion next week, senators friendly to the
broadcasters are eager to pass Grams's legislation and attach it to a
spending bill, say sources. As a rider, Grams's bill could be vetoed only if
the spending bill were vetoed.
[SOURCE: Washington Post (E03), AUTHOR: Frank Ahrens]
(http://washingtonpost.com/wp-dyn/articles/A5846-2000Oct3.html)
See more at (http://www.mediaaccess.org/)
CONGRESS APPROVES A BIG INCREASE IN VISAS FOR SPECIALIZED WORKERS
Issue: Jobs
Showing how fast (and slow) Congress can act when it wants to, both houses
passed legislation yesterday that will significantly increase the number of
H-1B visas available for educated foreigners. Many of these visa holders are
expected to land jobs in the high-technology industry. The votes followed
months of partisan feuding by lawmakers and aggressive lobbying by high-tech
companies. President Clinton is expected to sign the bill quickly. Only Sen
Ernest Hollings (D-SC) opposed the bill in the Senate (the Times describes
him as a longtime "job protectionist") and the legislation was passed by
voice vote in the House -- showing how much influence Silicon Valley has on
Capitol Hill. Under the bill, the Immigration and Naturalization Service
would be able to issue 195,000 H-1B visas a year, for each of the next three
years, to foreign-born workers with college degrees and special skills, up
from the existing limit of 115,000. Each visa is good for six years,
although it must be renewed after the first three.
[SOURCE: New York Times (A1), AUTHOR: Lizette Alvarez]
(http://www.nytimes.com/2000/10/04/technology/04VISA.html)
(requires registration)
See Also
CONGRESS PASSES LEGISLATION TO EXPAND NUMBER OF VISAS FOR HIGH-TECH WORKERS
[SOURCE: Wall Street Journal (B8), AUTHOR: Marjorie Valbrun]
(http://interactive.wsj.com/articles/SB97058361989360527.htm)
(Requires subscription)
COMMERCE MARKUP SESSION
Issue: Legislation
Thursday, October 5, 2000 10:00 a.m. in 2123 Rayburn House Office Building
The Full House Commerce Committee will meet in OPEN MARKUP SESSION at 10:00
a.m. on Thursday, October 5, 2000, and subsequent days if necessary, in 2123
Rayburn House Office Building, to consider measures including H.R. 3011,
Truth in Telephone Billing Act of 1999 and H. Res. 575, a resolution
supporting Internet safety awareness.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)
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