Ownership

Amid sky-high cable bills, many TV viewers have sought to cut costs by firing their TV providers and switching to a relatively new crop of online alternatives offering fewer channels at a lower price. These “skinny bundles” are often streamed live over the Internet and on mobile devices, creating new experiences for TV fans. But that video revolution could be threatened if the government allows AT&T to buy Time Warner, according to one of America's first providers of live-streaming skinny bundles.

Federal Communications Commission Chairman Ajit Pai shared with his fellow Commissioners a proposal to help address national security threats to US communications networks and their supply chains. Specifically, the draft Notice of Proposed Rulemaking, if adopted, would propose to bar the use of money from the FCC’s Universal Service Fund to purchase equipment or services from companies that pose a national security threat to United States communications networks or the communications supply chain. Chairman Pai will call for a vote on this proposal at the Commission’s April 17 meeting.

The Federal Trade Commission confirmed that it has an opened a "non-public" investigation into Facebook Inc.'s privacy practices. The social media giant's stock quickly dropped more than 5 percent. It's now down more than 20 percent from its Feb. 1 high.

Federal Communications Commission Chairman Ajit Pai said he shares the concerns of lawmakers about espionage threats from Chinese smartphone maker Huawei Technologies and plans to take “proactive steps” to ensure the integrity of the US communications supply chain. In a March 20 letter to lawmakers, Chairman Pai offered no specifics on his future actions. He said the FCC does not purchase or use Huawei or ZTE products or equipment, “and I do not expect that would change if a major US communications company partnered with Huawei.”

[Commentary] The affiliates want the Federal Communications Commission to impose a 39 percent ownership cap on the networks to keep the networks’ power in check. But that’s not what regulations are for — they should protect the public, not one business from another. 

I hope that individually or collectively affiliates find a way to bring back a balance of power so that their relationship with the networks becomes a true partnership. But the FCC should not be that way.

The biggest US antitrust case of this century kicked into high gear as a government lawyer warned that AT&T wants to buy media giant Time Warner to "weaponize" its must-have content — a move that would raise prices for consumers and hinder innovation. AT&T's added leverage over pay-TV competitors to withhold content from some of the most valuable assets in entertainment — including HBO, CNN, TBS, TNT and Warner Bros., Hollywood's largest TV and film studio — would cause prices to rise by more than $400 million a year for Americans, said Justice Department lawyer Craig Conrath.

Opponents fear that the Stop Enabling Online Sex Trafficking Act messes with a key ground rule that has allowed the internet to flourish. “Section 230 we’ve been saying for a long time is responsible for creating the modern internet that we know and love—not to say that the current Internet doesn’t have problems,” says India McKinney of the Electronic Frontier Foundation.

The tech industry is splintering in the wake of the controversies surrounding social platforms like Facebook, Twitter and Google's YouTube. A wide range of companies — from legacy Silicon Valley firms like IBM and Oracle to business-focused firms like Salesforce and Cisco — want to be seen as responsible players who can be trusted to make wise decisions when faced with tough calls. Companies of all stripes are trying to explain more clearly what they do, why they're different, and how they benefit society, one senior level official at a non-internet company said.

[Commentary] Over and over in the last 20 years we’ve watched low-cost or free internet communications platforms spring from the good intentions or social curiosity of tech folk. We’ve watched as these platforms expanded in power and significance, selling their influence to advertisers. Twitter, Facebook, LinkedIn, Google—they grew so fast. One day they’re a lovable new way to see kid pix, next thing you know they’re reconfiguring democracy, governance, and business. This is an era of breaches and violations and stolen identities.

As it became clear in November 2017 that the Department of Justice was heading for a legal  showdown with AT&T over its Time Warner merger, the company offered a proposal that it said would address the government’s concerns about competition. But thus far, only two percent of AT&T's rivals have expressed support for that plan. Of the 1,000 letters sent by AT&T to competing TV providers in November notifying them of the proposal, just 20 received a positive response. The lukewarm interest highlights the enormous stakes facing the entertainment industry.