Daily Digest 4/27/2018 (The New FTC)

Benton Foundation

A busy Friday

Policymakers

Senate confirms full slate of FTC commissioners

The Senate unanimously confirmed all five of President Trump's nominees to serve on the Federal Trade Commission (FTC), bringing the consumer protection agency to full strength for the first time since the start of the new administration. The FTC will now be chaired by Joseph Simons, a Republican antitrust attorney who led the commission's competition bureau during the George W. Bush administration. Also confirmed were two other Republicans — Noah Phillips, an aide to Sen. John Cornyn (R-TX), and Delta Air Lines executive Christine Wilson — plus two Democrats — Rohit Chopra, a consumer advocate and former CFPB official, and Rebecca Slaughter, an adviser to Senate Minority Leader Charles Schumer (D-NY).

Broadband/Internet

More Than 100 Mayors Sign Pledge to Protect the Open Internet as FCC’s Net Neutrality Repeal Is Set to Take Effect

More than 100 US mayors have signed on to the Cities Open Internet Pledge requiring all internet providers that do business with participating cities to adhere to strong Net Neutrality principles.  The effort was launched during the SXSW conference in March when Mayors Bill de Blasio of New York City, Steve Adler of Austin (TX) and Ted Wheeler of Portland (OR) released the pledge and urged fellow mayors to sign on. In collaboration, Free Press Action Fund created the MayorsForNetNeutrality.org website and partnered with Daily Kos, Demand Progress, Democracy for America, People for the American Way, Roots Action and other groups to alert residents to write their local mayors and ask them to sign the pledge. The action is the mayors’ response to the Federal Communications Commission’s unpopular 2017 decision to strip internet users of Net Neutrality protections. 

As the net neutrality CRA deadline in Congress approaches, support continues to grow

The Federal Communications Commission voted to repeal its net neutrality rules in December 2017. “The backlash to the repeal was overwhelming from internet users across the political spectrum. It led to a situation where we’re actually on the offense and we have this incredible tool, a powerful tool, somewhat of a blunt instrument, that Congress can use to block the FCC’s incredibly unpopular decision and keep these rules in place,” said Evan Greer, deputy director of internet advocacy group Fight for the Future. “It’s kind of the perfect mission for the internet.” Greer continued: “I think this is a pivotal moment. This is really the moment to rally the internet to fight.” The Senate will consider use of the Congressional Review Act (CRA) to overturn the ban. The choice for lawmakers is being highlighted online for voters to see. Internet activists are trying to help drum up support online by making it clear how every lawmaker is intending to vote on the net neutrality CRA. Fight for the Future, Demand Progress, and Free Press Action Fund, a trio of internet rights advocacy groups, created an online scoreboard that shows which lawmakers have voiced their support for the CRA. The scoreboard also lets people select their state so they can see if their local lawmakers have supported the CRA or not. As of April 24, the scoreboard says nearly 1.3 million calls have been made to lawmakers about the net neutrality CRA, with a handful of lawmakers—such as House Speaker Paul Ryan—getting more than 20,000 calls. But the scoreboard isn’t the only plans activists have for attracting attention to the CRA.

Why Republicans Can't Vote For Net Neutrality CRA

[Op-ed] There is considerable confusion about what’s really at stake in the congressional debates over net neutrality and online privacy regulation. For both issues, the threshold question is whether the Federal Trade Commission (FTC) or the Federal Communications Commission (FCC) should regulate internet service providers (ISPs). Republicans voted in favor of FTC jurisdiction over ISPs’ privacy practices through a congressional resolution repealing the FCC order adopting privacy rules for ISPs.  Once they did this, Republicans were effectively locked into voting against a congressional resolution that would restore the FCC’s jurisdiction over ISPs other terms and conditions of service (e.g., net neutrality) under “Title II” of the Communications Act. If the FCC’s authority to regulate ISPs under “Title II” were restored using the Congressional Resolution Act (CRA) process, neither the FTC nor the FCC would have clear jurisdiction to regulate the privacy practices of ISPs. 

[Fred Campbell is the director of Tech Knowledge, a Senior Policy Advisor with Wireless 20/20, and an adjunct professor in the Space, Cyber, and Telecommunications Law program at the Nebraska College of Law]

via Forbes

California net neutrality bill takes another step forward

A California bill that would impose the nation's strictest net neutrality law has been approved by another state Senate committee, bringing it closer to passage. The California Senate Judiciary committee approved the bill April 24 in a 5-2 vote, with Democrats supporting the net neutrality rules and Republicans opposing them. The bill was also approved recently by the California Senate Energy, Utilities, and Communications Committee despite protests from AT&T and cable lobbyists. AT&T complained in last week's committee hearing that the bill "goes well beyond the FCC order of 2015."  The California net neutrality bill can proceed to a vote in the full state Senate after it goes through the Senate Appropriations Committee, which reviews bills that have a fiscal impact after they have been cleared by policy committees. With the Judiciary vote, the bill has cleared the last Senate policy committee that it needed approval from. The bill would also need approval from the Democratic-majority State Assembly and Governor Jerry Brown (D-CA).

Spectrum/Wireless

Trump Administration Teeing Up Spectrum Policy 'Strategy'

At a meeting of the Commerce Spectrum Management Advisory Committee, David Redl, head of the National Telecommunications and Information Administration said that the Administration was working on "a spectrum strategy" that should be unveiled "soon," but provided no more details. But that was enough to fire up wireless carriers looking for all the spectrum strategies, and new spectrum, they can get.

New Data on Pole Prices Power 5G Debate

As part of the working group efforts within the Federal Communications Commission's Broadband Deployment Advisory Committee (BDAC), one subcommittee has collected data on telecommunication pole attachment rates and published the information along with some very early data analysis. The results suggest there is a wide range in the rental fees being charged for wireless equipment attachments, and that fees are significantly higher in unregulated markets compared to regulated ones. Across all of the data collected, the mean rental fee assessed for wired pole attachments is $17.58 per year, according to this latest study, while the median is $15.56 per year. For wireless pole attachments (which typically take up significantly more space), however, the mean rental fee is $505.56 per year, and the median is $56.60 annually. Further, among wireless attachments, the mean rate in regulated markets is $224.25 versus $993.55 in unregulated ones. The median fee is $50 in regulated markets and $360 in unregulated ones. As an important note, the study for the Federal Communications Commission (FCC) is based on data voluntarily submitted by BDAC participants, with 592 cases of wired attachments and 612 cases of wireless attachments recorded. That is a sample of convenience and is not necessarily representative.

Media Ownership

Senators Want to Freeze FCC Media Decisions

Twenty-two US senators wrote Federal Communications Commission Chairman Ajit Pai asking the FCC to stop making impacting the broadcast industry until it has taken a "holistic look" at the state of broadcasting and the media. They said they had noted Pai's elimination of local TV and radio ownership limits with growing concern. 

Chairman Pai Won't Commit to Delaying Sinclair Decision for Court Ruling

Federal Communications Commission Chairman Ajit Pai wasn't predicting when the FCC's vetting of the Sinclair-Tribune deal would be complete, but suggested that the FCC had not yet had a chance to fully evaluate it. Sinclair filed its latest, and expected to be last, amendment to the deal earlier during the week of April 23.  Chairman Pai was the single witness at a House Financial Services and General Government Subcommittee hearing on the FCC's budget. He would not agree to delay a decision on the Sinclair-Tribune deal until a court ruling on a related issue, the UHF discount. ChairmanPai said he would factor the potential court decision into the FCC's decisionmaking. One thing the FCC could do would be to condition the deal on the court upholding the UHF discount.

AT&T’s Tab Awaiting Time Warner Takeover Hits $1.4 Billion

Even if a federal judge sides with AT&T in its fight to take over Time Warner for $85 billion, victory won’t have come cheap. AT&T spent $1.1 billion in 2017 on debt interest and fees tied to the proposed merger, plus $214 million on related integration costs. The first quarter added another $67 million of integration costs. Time Warner said it spent $279 million on merger costs in 2017 and another $146 million through March. Those figures don’t include the full cost of staffing the trial, which kicked off in March 2018 after the Justice Department sued late last year to block it, arguing the combination would hurt pay-TV competition. 

How Comcast Wants To Change Cable Game

Comcast is trying to refigure the traditional cable bundle, adding services like Netflix to its subscription packages and offering internet-only TV streaming. Comcast, the world’s largest cable company, and other cable operators are trying to work out new relationships with once fierce rivals in a changing media landscape. Comcast and others have been trying to build a business that combine both the “pipes” — the internet services that connect everyone — and the producers of shows, movies, and other video. Cable operators and internet service providers say this business model is key to their survival, given the inroads companies like Google and Apple have made on their turf.

Privacy

Why all your favorite apps are serving you new privacy prompts

Users of Facebook, Google and other popular technology platforms are likely to benefit from stricter privacy regulations that will require new disclosures, new forms of consent and new power to limit how personal data is stored and utilized. The changes are being announced in emails, blog posts and new on-screen messages that many consumers are already beginning to see from Apple, Twitter, Airbnb, GoDaddy and others. Don’t bother thanking Washington. Rather the changes emanate from the European Union, which is imposing a host of new regulations that are forcing global changes, including for hundreds of millions tech consumers in the United States. Privacy advocates warn that these changes won’t fundamentally change the relationship between consumers and tech companies, many of which make their profits by collecting data on users, building individual profiles and selling advertising based on the resulting troves of data.

Content

Reps. Square Off at Hearing Over Online Censorship

House Communications Subcommittee Chairman Marsha Blackburn (R-TN) and Rep James Hines (D-CT) testified before the House Judiciary Committee about alleged online censorship of conservative speech. The hearing was on "Filtering Practices of Social Media Platforms" and stemmed in part from Facebook CEO Mark Zuckerberg's testimony before Congress recently.  The first two panelists were members of Congress, and as such only presented statements and were not questioned afterward. And for more than three hours, Republican leaders and mega-popular conservative bloggers such as Diamond and Silk sought to make themselves heard, loudly, at a hearing on what Democratic Reps described as a grand conspiracy theory. At times yelling at lawmakers, Lynnette Hardaway, known as Diamond, alleged at the hearing that “Facebook along with other social media sites have taken aggressive actions to silence conservative voices like ourselves.” Diamond and Silk also testified, claiming under oath that they were never paid for their consulting work by President Donald Trump's 2016 presidential campaign. Federal campaign finance filings show otherwise. "We have never been paid by the Trump campaign," Lynette Hardaway, who goes by Diamond, told Rep Sheila Jackson Lee (D-TX). Filings with the Federal Election Commission (FEC) show that the campaign paid the duo $1,275 on Nov. 22, 2016, for "field consulting." The two later backtracked under questioning from Rep Hakeem Jeffries (D-NY), explaining that the Trump campaign had reimbursed them for airfare after they traveled to a campaign event. They insisted that they had never been paid for consulting work. "We are familiar with that particular lie, we can see that you do look at fake news,” said Rochelle Richardson, the other half of Diamond and Silk, when the New York Democrat brought up the FEC receipt. "I’m just trying to figure out who is lying here,” Rep Jeffries said.

This Could Be the Worst Year for Kids TV

The cable networks for children, in decline for years, are now in a free fall. This season’s ratings for the 2-to-11 set are shaping up to be the worst yet. And few in the industry predict a turnaround. The implications are enormous for giants like Viacom and Walt Disney. Viewership of the three most-popular networks for the very young — Nickelodeon, the Disney Channel and the Cartoon Network — is down more than 20 percent this season from year earlier, according to data from Nielsen. It’s a low point in a long-running trend as Netflix, YouTube and other streaming services have taken off.

Journalism

Half of Republicans say the news media should be described as the enemy of the American people

In March, Quinnipiac University’s pollsters asked Americans if they thought certain news outlets — unnamed by Quinnipiac — were enemies of the American people? Nearly 4-in-10 said yes — including more than 8-in-10 Republicans. In a poll released April 26, Quinnipiac was more direct. Less than a quarter of the public says that the news media broadly is better described as “enemy of the people” than an “important part of democracy.” But among Republicans, more than half preferred the former term to the latter. Granted, there was a limited set of options from which to choose. The question wasn’t “is the media the enemy of the people” but “which is a better descriptor.” It’s still remarkable, though, that so many in President Donald Trump’s party think that “enemy” is more accurate than “important part of democracy.”

Facebook in the News

House Commerce Democrats Have Hundreds More Questions for Facebook's Zuckerberg

Democrats on the House Commerce Committee have an additional 600 questions for Facebook CEO Mark Zuckerburg. Among the questions:

  • What specific information is available to users when they use the 'Download Your Information' tool?
  • How many firms other than Cambridge Analytica did researcher Aleksandr Kogan sell the data he received from Facebook?
  • Are you willing to change your business model in the interest of protecting individual privacy?
  • How many points of data does Facebook have on the average non-Facebook user?
  • How many Facebook share buttons are there on non-Facebook web pages?

Facebook can't get a break from DC conservatives

Facebook, despite years of outreach to conservatives, remains a punching bag for the right. Facebook’s lukewarm relationship with the right has complicated its search for DC allies to help fend off new privacy regulations. On April 24, the company announced it had replaced the head of its Washington office with Kevin Martin, former Republican Federal Communications Commission chairman. Facebook is bracing for another beating — this time, from some conservatives at a hearing featuring pro-Trump video stars Diamond and Silk, who say Facebook discriminated against their content. The internet companies aren't sending representatives to the hearing. One longtime conservative tech policy staffer likened Facebook's face-off with conservatives to trench warfare, "very much like on the Western Front": "In my mind I don’t see much movement in terms of right-of-center groups coming out of their trenches to welcome Facebook, or vice versa.”

via Axios

Why Facebook's Troubles Haven't Dented Its Profits

In response to the Cambridge Analytica story, Facebook has curbed outsiders’ access to its data, vowed to hire thousands of additional content reviewers, and offered users clearer privacy controls. “I don’t think they do anything that will cost them more than a dollar over the long term,” said New York University professor Scott Galloway. The changes Facebook announced to regain consumer trust were “a series of half measures — one part delay, one part obfuscation. They’ve effectively done nothing [and] it doesn’t look like anyone cares,” he said. Consumers outraged by recent revelations tend to express that outrage on Twitter and Facebook, he said.

via Wired

Unlike in US, Facebook Faces Tough Questions in Britain

In London, Facebook’s chief technology officer, Mike Schroepfer, faced more than four hours of questions from a British parliamentary committee over the company’s data-collection techniques, oversight of app developers, fake accounts, political advertising and links to the voter-targeting firm Cambridge Analytica. If American politicians have been lampooned for being Luddites, the British Parliament’s Digital, Culture, Media and Sport Committee has built a reputation for thoroughness and detailed questioning. Damian Collins, the committee’s chairman, had more than 11 pages of questions for Schroepfer, including how facial recognition technology is used and the methods Facebook uses to track people even when they are not on the site. One of the most heated exchanges came between Julian Knight and Schroepfer. The Conservative minister said Facebook was a "morality-free zone," destructive to privacy, and not an innocent party that was wronged by Cambridge Analytica. "Your company is the problem," he said.

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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.

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