Brian Fung

Tech companies ‘profit from ISIS,’ allege families of Orlando shooting victims in federal lawsuit

In June, a gunman killed 49 people and wounded 53 others in a horrific spate of violence at a gay nightclub in Orlando (FL). Now, the families of some of the victims are suing Google, Twitter and Facebook, arguing that the tech companies had a role in radicalizing the shooter.

The families are accusing the companies of providing support to the Islamic State, the terrorist organization that appeared to inspire the attack. Although the gunman, Omar Mateen, did not appear to have official ties to the Islamic State, also referred to as ISIS, the victims' families say the group's indirect influence over the gunman is at least partly attributable to its “unfettered” ability to recruit fighters on social media. Through their data-driven business models, companies such as Google, Twitter and Facebook even “profit from ISIS postings through advertising revenue,” according to the lawsuit, which was filed in a Michigan federal court Dec 19. The families of Tevin Eugene Crosby, Juan Guerrero and Javier Jorge-Reyes are demanding a trial and unspecified monetary compensation. “Without … Twitter, Facebook, and Google (YouTube), the explosive growth of ISIS over the last few years into the most feared terrorist group in the world would not have been possible,” the lawsuit reads.

Aggressive sales goals pressure T-Mobile workers to sell unwanted services, labor group alleges

T-Mobile employees under pressure to meet sales goals are sometimes driven to mislead customers or to enroll them in services they didn’t ask for, alleges a report from a labor coalition.

In a complaint that Change to Win said they filed with the Consumer Financial Protection Bureau, the labor group claimed that T-Mobile sets “unrealistic sales targets” that encourage workers to act in ways that may not benefit consumers. The group found that some workers said they felt pressure to add insurance, phone lines and other services that customers didn’t explicitly ask for to meet sales targets and earn commission payments. The findings were based on a review of consumer complaints collected by the Federal Trade Commission, a consumer protection agency, interviews with workers and online surveys of people who identified themselves as T-Mobile employees and customers.

CBS and Viacom’s parent company doesn’t want them to merge, after all

The parent company of CBS and Viacom is urging the two companies not to merge, reversing course on a major proposal that had been portrayed as a potential boon to both companies. In a letter to the boards of CBS and Viacom on Dec 12, National Amusements — a privately held entertainment firm that owns controlling shares of both subsidiaries — said that now was “not the right time” to merge the companies.

Pointing to recent changes in Viacom's management, NAI said it was convinced that the struggling cable and film company boasted “forward-looking thinking” and had a compelling strategic plan. Since 2014, Viacom's stock has fallen roughly 60 percent, while shares of CBS are at about the same level they were two years ago. “CBS continues to perform exceptionally well under Les Moonves,” NAI's letter read, “and we have every reason to believe that momentum will continue on a stand-alone basis.”

How media law could drive a wedge between Donald Trump and the Republican Congress

Soon-to-be House Commerce Committee Chairman Greg Walden (R-OR) and Rep John Yarmuth (R-KY) want to repeal a long-standing ban on media consolidation, calling it a “disco era” rule that prevents struggling local media outlets from surviving in an increasingly-competitive market for information. Their legislation takes aim at a 41-year-old rule that prohibits a company from owning both a newspaper and a radio or television station in the same market. Critics of media ownership consolidation have included President-elect Donald Trump, who during his campaign lashed out at the proposed deal to combine AT&T with media titan Time Warner. Repealing the media ownership ban is necessary to help smaller voices stay economically competitive, according to proponents.

But critics of consolidation, such as Trump, have worried that the trend could lead to the crowding out of conservative voices. Trump's previously stated opposition to media consolidation raises questions about his position on the bill from Reps Walden and Yarmuth. Although the media cross-ownership ban applies only to ownership of newspapers and broadcast media, not cable, the walls that have traditionally divided these companies into silos are rapidly collapsing.

How AT&T defends its free data policy to skeptical regulators

Parent company AT&T is defending a feature with DirecTV before regulators who said in Nov that they harbor “serious concerns” about the practice, in a fight over how consumers get to experience video on their mobile devices. The program allows consumers to watch as much DirecTV as they want on their AT&T cellphone plans without that consumption eating into customers' monthly data allotments. The exemptions, which AT&T will also apply to its new streaming video app, DirecTV Now, are perfectly good for consumers, the company said in a letter to the Federal Communications Commission.

“Consumers have enthusiastically embraced Data Free TV,” the letter reads. (AT&T owns DirecTV.) As AT&T uses Data Free TV to promote its proprietary services to consumers, other companies could be harmed by the move, critics have said. For example, if Netflix refused to play on AT&T's terms, consumers who watched “Orange is the New Black” on AT&T's data network could find that they were depleting their available data. This would lead to DirecTV having an advantage over Netflix. And the gap would become even more pronounced for smaller media and Internet companies, skeptics say. In its letter, AT&T responded to those claims by arguing that its practice of exempting DirecTV is good for consumers and that it doesn't exclusively benefit its own bottom line. “AT&T makes its sponsored data program available to all content providers on the same terms and conditions,” the letter said. “In fact, AT&T went further in meeting the nondiscrimination requirement than traditional law would require.”

SpaceX just took another step toward delivering superfast Internet from space

SpaceX has asked the government for permission to test what could someday be a massive network of satellites that will beam Internet service down to Earth. The application, filed Nov 16 to the Federal Communications Commission, proposes a fleet of what will eventually include more than 4,400 satellites, covering the United States and the rest of the globe. SpaceX needs regulatory approval from the FCC to use the wireless airwaves that would power this network.

Orbiting more than 700 miles up, the satellites could provide speeds as fast as 1 gigabit per second, per user, according to a technical attachment to the filing. That's as much bandwidth as some premium Internet providers offer entire households. SpaceX would start by launching 800 satellites, the filing said. “The system is designed to provide a wide range of broadband and communications services for residential, commercial, institutional, governmental and professional users worldwide,” according to the technical attachment. “Once fully deployed, the SpaceX System will pass over virtually all parts of the Earth’s surface and therefore, in principle, have the ability to provide ubiquitous global service.”

What an iPhone could cost in Trump’s America

Businesses and policymakers are bracing for what could happen under President-elect Donald Trump's trade agenda. President-elect Trump has promised to slap a tax on Chinese goods, possibly as high as 45 percent; he also has said that he will reinvigorate US manufacturing by bringing it home. What would this mean for the goods we buy?

It costs Apple $224.80 to manufacture an iPhone 7, and that doesn't include the cost of R&D, marketing and distribution. A federal markup of 45 percent could drive up that price by more than $100. Apple could keep its retail price for a basic iPhone at $650, but the decision would cut significantly into its margins. Apple declined to comment on whether a tariff would lead to higher prices, saying in a statement that “Apple is responsible for creating more than two million jobs across the United States, from engineers, retail and call center employees to operations and delivery drivers. We work with over 8,000 suppliers from coast to coast and are investing heavily in American jobs and innovation.”

Why President-elect Trump might not block the AT&T-Time Warner merger, after all

Despite his campaign vows to block the deal, President-elect Donald Trump could be forced to take a friendlier stance on AT&T's $85 billion acquisition of Time Warner than he initially laid out, analysts say — potentially disappointing supporters who were hoping for a big showdown with the company. Regulators at the Justice Department are likely to examine the proposed deal closely no matter what happens.

But a constellation of factors, from the makeup of President-elect Trump's transition team to the mundane details of antitrust law, may make it difficult for President-elect Trump to oppose the tie-up once he is in office. As a result, one of the earliest decisions to occur on President-elect Trump's watch may be the regulators' approval of the massive acquisition. “Either there's going to be mass tension within his team, or he's going to sit back and let the [establishment conservatives] have their way — in which case, all of his campaign rhetoric on blowing up Comcast and AT&T was just cheap talk,” said Hal Singer, an economist and senior fellow at the George Washington Institute for Public Policy. Analysts say AT&T was likely caught off-guard by President-elect Trump's victory. “They made a calculated bet with the Hillary administration — this is not what they expected,” said Frank Louthan, an industry analyst at Raymond James. “They may still prevail, but that was a shock.”

How Donald Trump could dismantle net neutrality and the rest of Obama’s Internet legacy

President-elect Donald Trump could eviscerate some of the most significant tech policies of the 21st century, all but erasing President Barack Obama's Internet agenda and undoing years of effort by lawmakers, tech companies and consumer advocates to limit the power of large, established corporations, analysts say. In particular danger are key initiatives of the Obama years, including network neutrality and a pivotal series of Internet privacy regulations that came along with it.

During the campaign, Trump vowed to “eliminate our most intrusive regulations” and “reform the entire regulatory code.” He has singled out net neutrality as a “top down power grab,” predicting it would allow the government to censor websites. Congressional Republicans have taken aim at net neutrality as well, setting the stage for a concerted effort by President-elect Trump and his House and Senate allies to undermine the policy. And because the government’s consumer privacy policies draw their power from net neutrality, they are likely to fall as well if conservatives successfully gut the rules. At first, President-elect Trump's FCC may simply decide not to enforce the rules. But soon they would take formal steps to strike the rules from the books, said an FCC official who spoke on condition of anonymity in order to speak more freely. Trump is expected to appoint a Republican FCC chair in 2017 who could vote to roll back Wheeler's decisions with the support of the agency's two other conservatives, Ajit Pai and Michael O'Rielly. (Both declined to comment.) It is still unclear whom Trump may nominate as chair, and a Trump spokesman did not immediately respond to a request for comment

How a single Internet provider could end up making money off you several times over

AT&T's recently announced deal to acquire Time Warner reflects massive changes in media and technology. Although regulators could challenge the acquisition or slap conditions on it that may limit how AT&T can use its new assets, the purchase hints at a future where a single company can monetize the same customer multiple times over, just through the customer's routine use of the Internet. If AT&T succeeds — and that's still a big if — it will be that much closer to turning its subscribers into virtual cash machines, going to them over and over to grow its revenue base. Here are a few ways that could work:

Sell connectivity: At its core, AT&T is a network company. Its main job until now has been to sell you access to communications, such as phone or Internet service. These services act as conduits to the information or media you can find once you're hooked as a subscriber.
Sell content: On top of selling you the network, companies such as AT&T increasingly want to sell you the content that travels over those networks — including shows like “Game of Thrones” or “Westworld.”
Sell advertising: This is the big one. Advertising, particularly of the targeted variety, forms the cornerstone of the entire Internet economy. And Internet providers want a big slice of it.
Sell your data: A company, such as AT&T, could put your data to work for its own advertising business. But it could also benefit by sharing your data with marketing firms and other third parties who can use that information themselves.