Wednesday, November 14, 2018
Headlines Daily Digest
Michael Copps: From Midterms to What?
Don't Miss:
FCC's Top Lawyer Lays Out Net Neutrality Argument
Media deals become President Trump's political targets — again
Agenda
Broadband/Internet
Wireless
Privacy/Security
Platforms
Ownership/Competition
- DOJ antitrust chief Makan Delrahim says evidence, not tweets, drives decisionmaking | Reuters
Television
Journalism
- Editorial: What's at stake in the CNN suit against the White House? | Columbia Journalism Review
- Opinion: Donald Trump and Jim Acosta, a Love Story | Jack Shafer
Elections
Violence
Policymakers
Stories From Abroad
Agenda
The midterms just completed (except for recounts) were historically important, and in this critical time for our democracy, we must try to make some sense of where we are. The bad news is split government; the good news is split government. Taking the latter first, leaving unchecked the current Administration’s control of both the Executive and Legislative branches could only have encouraged its bull-in-the-china-shop rampage against its arch-enemy—the “administrative state.” Its many successes in dismantling public interest government in less than two years, poisonous as this has been, would only have been prologue to an even more ambitious onslaught over the next two years. The outcome of the recent elections can, with a lot of skill and a little luck, slow the demolition. Split government is far from ideal government, to be sure, but its function for the upcoming two years is, first, to put the brakes on the Trump devastation and, secondly but equally important, tee up some real issues for citizens to deliberate as we move toward 2020.
The bottom line is that all the great reforms in our nation’s history have come, not as a gift from Washington, DC, but from a citizenry informed and organized and insistent upon making things right. We have a little better chance to do this now than we did a week ago.
Federal Communications Commission General Counsel Tom Johnson is set to rebut net neutrality advocates on Feb. 1 before the DC Circuit Court of Appeals — and he previewed the agency’s arguments during a Free State Foundation event Nov 9. He said the FCC would cite a “stamp of approval from the Supreme Court” via the 2005 Brand X decision, which asserted that broadband can be classified as an information service, as well as “a history of past commission orders reaching the same conclusion.” Although the FCC believes it can override state net neutrality laws like the one in California, it hasn’t yet settled the question of whether it can challenge efforts to make net neutrality a requirement for state government contracts, Johnson said. “The commission has not taken an explicit position,” he said, adding the FCC hasn’t sought to intervene in such procurement-related actions for that reason.
AT&T CEO Randall Stephenson urged Congress to pass network neutrality and consumer data privacy laws that would prevent states from issuing their own stricter laws. "There are a number of states that are now passing their own legislation around privacy and, by the way, net neutrality," Stephenson said. "What would be a total disaster for the technology and innovation you see happening in Silicon Valley and elsewhere is to pick our head up and have 50 different sets of rules for companies trying to operate in the United States." "There should be no blocking," ISPs "should not be allowed to throttle somebody else's content," and any device should be allowed to connect to the Internet without interference, he said. Stephenson apparently made no mention of banning paid prioritization, which was banned under the now-repealed Federal Communications Commission rules and by the California law that AT&T and other ISPs are fighting in court. Stephenson also apparently did not call for any limitations on zero-rating.
Sacramento (CA) has come to stand as an example of the complexities involved in actually getting 5G services turned on. Sacramento’s journey toward 5G started in 2016 with an agreement between the city and a company called XG Communities. The agreement called for XG to identify and organize a database of city assets—namely, street light poles, conduit, fiber and utility circuitry—that could be made available to carriers that wanted to pay for the rights to install small cells on city property. However, a year later, Sacramento was approached by Verizon to be one of the operator’s first 5G cities, and so it inked a separate $100 million deal with Verizon that went around its agreement with XG Communities. That deal gave Verizon access to city infrastructure in return for free Wi-Fi in public parks and other amenities. As luck would have it, the same day Verizon launched its fixed 5G service in Sacramento in Oct, a Superior Court judge ruled that several key provisions of the city’s agreement with Verizon violated the city’s contract with XG. The ruling calls into question the legality of some aspects of Verizon’s network in Sacramento, and a judge has since rendered a final ruling that requires the city to make good on its contract with XG.
Sens Jerry Moran (R-KS) and Tom Udall (D-NM) have added their voices to those of broadcasters and others asking the Federal Communications Commission to be careful how it allows new users to share the C-band spectrum they use to receive programming networks from suppliers. "As part of its proceeding, the FCC must consider whether sufficient spectrum will remain available to accommodate today's C-band services, whether other transmission capacity could provide an equally reliable, available, affordable and resilient alternative, whether new uses of the band could result in harmful interference to existing services, and how to reiumburse C-band earth station operators for costs incurred," they wrote FCC Chairman Ajit Pai.
The Federal Communications Commission just gave the wireless infrastructure effort a lift by streamlining the rules for deploying small cells. I found last week’s editorial by the mayor of San Jose (CA) quite odd. Mayor Sam Liccardo argued that the new FCC rules to encourage faster deployment are an industry effort to “usurp control over these coveted public assets and utilize publicly owned streetlight poles for their own profit, not the public benefit.” But the new streamlining rules do no such thing. Public rights of way will still be public. Cities and states will still have the same access as private firms, just as they had before. And who will benefit from the private investment of some $275 billion dollars in new wireless networks? That’s right — the public. Too often, cities are blocking access to these rights of way, unless firms pay up. These government games are the very obstacles to deployment that the FCC rule is meant to fix.
Staff of the Federal Trade Commission called for a balanced approach that protects both consumer privacy and innovation in a comment submitted to the Department of Commerce’s National Telecommunications and Information Administration (NTIA) as part of that agency’s consumer privacy proceeding. FTC staff noted the FTC's extensive experience in protecting consumer privacy and fostering innovation. The FTC is uniquely situated to balance consumers’ interests in privacy, innovation, and competition, according to the comment. In particular, the FTC’s dual mission of protecting competition and consumer protection gives the Commission a deep understanding of the benefits and costs to consumers associated with the use of their data.
In response to some of the specific topics raised by NTIA, the comment reiterates the FTC’s commitment to data security. The comment also summarizes the importance of companies’ making accurate disclosures about privacy. The comment calls for a balanced approach to choice, where the level of control would depend on consumer preferences, context, and risk. It also notes that the Commission should continue to be the primary enforcer of laws related to information flows in the marketplace, whether under the existing or a new privacy and security framework. The comment adds that the Commission will be examining its current authority related to privacy and data security as part of its series of hearings on Competition and Consumer Protection in the 21st Century.
Sens Markey, Udall, Blumenthal Call for FTC Investigation into Manipulative Marketing in Children’s Apps
Sens Ed Markey (D-MA), Tom Udall (D-NM), and Richard Blumenthal (D-CT) called on the Federal Trade Commission to launch an investigation into new evidence of manipulative marketing practices in apps directed at children. A new study recently published in the Journal of Developmental & Behavioral Pediatrics reveals numerous instances of children’s games using advertising techniques that appear to constitute unfair and deceptive practices under Section V of the FTC Act. In their letter, the Sens highlight evidence of children’s games disguising advertisements, as well as making advertisements integral to games themselves; games using characters to coerce children into making in-app purchases; children’s apps being marketed as free when they actually require additional spending in order to play; and children’s apps characterizing themselves as educational, when they are in fact saturated with advertising. “The FTC has a statutory obligation to protect consumers from unfair and deceptive advertising practices. That responsibility is all the more urgent when the potential victims of such practices are children,” wrote the Sens. “As parents increasingly permit kids to engage in online games and apps for entertainment and fun, it is imperative to ensure that these playtime options are compliant with existing laws.”
In the 1990s and 2000s, the web and the internet were new and everything was going to be different forever, and the chaos made it easy to think that bigness—the economics of scale—no longer really mattered in the new economy. After a decade of open chaos and easy market entry, something surprising did happen. A few firms—Google, Facebook, and Amazon—did not disappear. Unfortunately, antitrust law failed to notice that the 1990s were over. Instead, for a decade and counting, it gave the major tech players a pass—even when confronting fairly obvious dangers and anticompetitive mergers.
If there is a sector more ripe for the reinvigoration of antitrust regulation, I do not know it.
[Tim Wu is a professor at Columbia Law School]
Ownership/Competition
DOJ Requires Sinclair and 5 Other Broadcast TV Companies to Terminate and Refrain from Unlawful Sharing of Competitively Sensitive Information
The Department of Justice announced that it has reached a settlement with six broadcast television companies — Sinclair, Raycom Media, Tribune Media Company, Meredith Corporation, Griffin Communications, and Dreamcatcher Broadcasting — to resolve a DOJ lawsuit alleging that the companies engaged in unlawful agreements to share non-public competitively sensitive information with their broadcast television competitors. “The unlawful exchange of competitively sensitive information allowed these television broadcast companies to disrupt the normal competitive process of spot advertising in markets across the United States,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Advertisers rely on competition among owners of broadcast television stations to obtain reasonable advertising rates, but this unlawful sharing of information lessened that competition and thereby harmed the local businesses and the consumers they serve.”
The proposed settlement prohibits the direct or indirect sharing of such competitively sensitive information. The Department has determined that prohibiting this conduct would resolve the antitrust concerns raised as a result of the conduct of these defendants. The proposed settlement further requires defendants to cooperate in the department’s ongoing investigation, and to adopt rigorous antitrust compliance and reporting measures to prevent similar anticompetitive conduct in the future. The settlement has a seven year term, and it will continue to apply to stations currently owned by defendants, even if those stations are acquired by another company.
President Donald Trump continues to comment on antitrust matters related to media companies he doesn't like, and experts worry the resulting political fray could hinder the Justice Department's ability to independently evaluate mergers. Media companies looking to merge amid an already difficult economic climate now have to consider this reality as a part of their business decisions.
Consumer groups are raising red flags about both the AT&T/Time Warner merger that was approved this summer (after the Justice Department tried to block it) and the Comcast/NBCUniversal merger that was approved in 2011 during the Obama administration. Recently, the American Cable Association asked the DOJ to investigate Comcast/NBCU for antitrust violations. President Trump tweeted about the letter Nov 12, saying, "American Cable Association has big problems with Comcast. They say that Comcast routinely violates Antitrust Laws. 'These guys are acting much worse, and have much more potential for damage to consumers, than anything AT&T-Time Warner would do.' Charlie Gasparino"
"There is a strong basis for enforcing these laws regardless of the White House's statements, but those statements in no way help the DOJ do its job effectively," says Gene Kimmelman, president and CEO of Public Knowledge.
Journalism
CNN sues President Trump, requesting that Jim Acosta's White House press pass be restored
CNN said that it is suing President Donald Trump and other administration officials over the decision to suspend the White House press credentials of correspondent Jim Acosta after a conflict at a news conference. The lawsuit, to be filed in US District Court for the District of Columbia, escalates an ongoing battle between President Trump and the cable news outlet that he frequently accuses of disseminating “fake news” for its aggressive coverage of him and his administration. “The wrongful revocation of these credentials violates CNN and Acosta’s 1st Amendment rights of freedom of the press, and their 5th Amendment rights to due process,” AT&T Inc.-owned CNN said. “If left unchallenged, the actions of the White House would create a dangerous chilling effect for any journalist who covers our elected officials.”
The suit requests “immediate restoration” of Acosta’s “hard pass,” a press credential issued by the Secret Service that allows reporters access to the White House grounds, parts of the West Wing and secured areas during presidential trips. White House Press Secretary Sarah Huckabee Sanders said the suit was “just more grandstanding from CNN” and the White House “will vigorously defend” against it.
The Russian government is arguing that a federal court should dismiss a lawsuit brought by the Democratic National Committee alleging that Moscow’s military spies, the Trump campaign, and the WikiLeaks organization conspired to disrupt the 2016 campaign and tilt the election to Donald Trump. In a letter and statement to the State Department and a judge in the Southern District of New York, Russia’s Ministry of Justice argued that the United States’ Foreign Sovereign Immunities Act protects the Russian government from such lawsuits. In particular, the lawsuit’s naming of the GRU military spy agency as a defendant takes the litigation out of bounds on the basis that “any alleged ‘military attack’ is a quintessential sovereign act,” said a Nov. 6 statement by the ministry’s Department for International Law and Cooperation. The Russian government also warned that if the suit is allowed to proceed, it exposes American spy services such as the National Security Agency — an arm of the Defense Department — to “a tidal wave of civil litigation” in foreign courts.
President Donald Trump took part in an event celebrating Diwali Nov 13 at the White House alongside several administration officials. During the ceremony, President Trump teased Federal Communications Commission Chairman Ajit Pai, who was in the room. "I just didn't like one decision he made but that's all right," President Trump said as he was introducing Pai, potentially referencing Pai's decision on a merger between Sinclair and Tribune Media. "Not even a little bit. He's independent," President Trump joked, as the group of administration officials behind him laughed. In July, President Trump called the Sinclair/Tribune merger decision "so sad and unfair."
The 2018 edition of Global Information Society Watch (GISWatch) focuses on local access models, specifically, community networks as self-organised, self-managed or locally developed solutions for local access, based on the conviction that one of the keys to affordable access is giving local people the skills and tools to solve their own connectivity challenges. Instead of buying an access service from a large corporate entity, community networks allow community members to self-provide and share infrastructure. The 43 country reports included in 2018's GISWatch capture the different experiences and approaches in setting up community networks across the globe. They show that key ideas, such as participatory governance systems, community ownership and skills transfer, as well as the “do-it-yourself” spirit that drives community networks in many different contexts, are characteristics that lend them a shared purpose and approach. The country reports are framed by eight thematic reports that deal with critical issues such as the regulatory framework necessary to support community networks, sustainability, local content, feminist infrastructure and community networks, and the importance of being aware of “community stories” and the power structures embedded in those stories.
Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org) and Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.
© Benton Foundation 2018. Redistribution of this email publication — both internally and externally — is encouraged if it includes this message. For subscribe/unsubscribe info email: headlines AT benton DOT org
Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Foundation
727 Chicago Avenue
Evanston, IL 60202
847-328-3049
headlines AT benton DOT org
The Benton Foundation All Rights Reserved © 2018