Tech companies warn privacy rules will kill innovation

A host of companies and trade associations are warning the Federal Trade Commission that its proposed revision to children's online privacy rules will burden tech start-ups and stifle innovation.

The Association for Competitive Technology, which represents mobile app developers, claimed the revised rules would impose $250 million in compliance costs, decimating small app makers. Microsoft said it is concerned the rules "do not provide clear, practical guidance or result in tangible benefits for children and parents." The company warned the regulations "could have unintended consequences that would impede, rather than promote, privacy and safety online." Wireless carrier trade group CTIA warned that the revision could hinder the ability of children to participate in "positive and valuable Internet-based experiences."