October 2014

Will the FCC be tempted by AT&T’s suggestion of internet ‘fast lanes’ run by users?

The Federal Communications Commission is caught between two controversial proposals as it struggles to write new rules for the internet.

One proposal, which would allow paid “fast lanes” for certain websites, is wildly unpopular with the public while the other, which calls for treating internet providers like a public utility, is radioactive to powerful industry groups.

Faced with this no-win dilemma, a compromise would be most welcome for the beleaguered agency. And, as it happens, AT&T says it has just the thing in the form of “user driven” fast lanes that, in theory, could preserve the principles of an open internet without leading industry groups to throw a fit over regulations. But not everyone is convinced. “These sort of compromises are always very attractive to policy makers if they can get them,” said Harold Feld of consumer advocacy group Public Knowledge. “Politically, could it provide enough cover for those who want this issue to go away? It might.” Feld suggested that AT&T has long been shrewd out at staking out what seems to be middle ground, and positioning itself as a reasonable voice on controversial issues. But he is skeptical that the company’s proposal differs significantly from the FCC’s initial fast lane proposal from May, and described them as “just fast lanes with an opt-in.”

NSA report casts little light on civil liberties

The National Security Agency released a report attempting to outline the privacy and civil liberty protections that go into the collections of signal intelligence under authority from a decades-old executive order, known as 12333. The report, from the NSA Civil Liberties and Privacy Office, casts little new information, and the NSA admits its protections are limited because of the nature of its work. "Because NSA has a national security mission, the principles of transparency and individual participation are not implemented in the same manner they are in organization with a more public facing mission," the report states.

Civil liberties groups: Don’t stop on NSA reform

Dozens of civil liberties groups are calling on Congress not to stop short in reforming the National Security Agency. The Bill of Rights Defense Committee led other organizations in a letter warning Congress against stopping with the USA Freedom Act, a bill currently in the Senate that would end the NSA’s bulk collection of Americans’ phone records. Lawmakers should pass that bill “and then immediately turn your attention to more meaningful and comprehensive reform of the [NSA’s] overreaching and unconstitutional surveillance practices,” the groups wrote. The USA Freedom Act is “an important first step in curtailing the NSA’s abuses of fundamental constitutional rights, but it would not be enough,” they added.

US says it can hack into foreign-based servers without warrants

The US government may hack into servers outside the country without a warrant, the Justice Department said in a new legal filling in the ongoing prosecution of Ross Ulbricht. The government believes that Ulbricht is the operator of the Silk Road illicit drug website. The filing in New York federal court centers on the legal brouhaha of how the government found the Silk Road servers in Iceland. Ulbricht said that the government's position -- that a leaky CAPTCHA on the site's login led them to the IP address -- was "implausible" and that the government (perhaps the National Security Agency) may have unlawfully hacked into the site to discover its whereabouts.

Twitter sues US government over limits on ability to disclose surveillance orders

Twitter sued the US government, alleging that the Justice Department’s restrictions on what the company can say publicly about the government’s national security requests for user data violate the firm’s First Amendment rights.

With its lawsuit, Twitter is seeking to go further than five other technology companies that earlier this year reached a settlement with the government on the permissible scope of disclosure at a time of heightened concern about the scale of government surveillance. “It’s our belief that we are entitled under the First Amendment to respond to our users’ concerns and to the statements of US government officials by providing information about the scope of US government surveillance -- including what types of legal process have not been received,” said Ben Lee, a Twitter vice president. “We should be free to do this in a meaningful way, rather than in broad, inexact ranges.”

People care more about convenience than privacy online

Are you willing to give up privacy for convenience? For most people, the answer is yes, according to a recent survey from Gigya.

The company, which allows consumers to use their Facebook or Twitter log-ins to sign in to a wide range of Web sites, found that users fear the worst when it comes to the privacy of their data but still are willing to put convenience above those concerns. The finding may not be particularly surprising to anyone who have ever sat at their computer and racked their brain for yet another password. But it does show that while many Internet users really, really don't trust their social networks, they're still willing to use the log-ins from those sites. The survey found that 60 percent of Internet users opt to use their Facebook, Twitter or Google account credentials to log in to other sites -- even though most users fear those companies aren't being careful with their data. Of those surveyed, more than 46 percent of users think that sites using social log-ins will sell their data. Nearly 42 percent think sites or apps will post on users' social media accounts without permission, and 40 percent say they worry that these companies will "spam" their social network friends.

Tying up the cable business

When does “big” become “too big”?

Regulators in Washington (DC) will have to decide. In February Comcast announced a $45 billion bid for Time Warner Cable, America’s second-largest cable company. The deal would give more might to a firm that, besides the largest pay-TV and internet business in America has, thanks to its 2011 takeover of NBCUniversal, broadcast networks, cable channels, a film studio and other media assets. Most crucially, it would cede to Comcast more control over America’s high-speed internet, a buoyant business that is set to be the future conduit of content delivery, but one in which Comcast already faces less competition than in pay-TV. Comcast says it will invest more in broadband infrastructure and provide more low-cost internet access to the poor, but it is far from clear that the public will benefit from Kabletown (as Comcast was called in “30 Rock”, an NBC comedy about life inside NBC) turning into Kablecountry. The way this giant deal is progressing reveals a lot about corporate America.

Fox Buying Station in Seattle

Fox, after telling Tribune that it was taking away the network affiliation from Tribune’s KCPQ Seattle, has moved to fill the gap by buying its own station in the market. Venture Technologies Group, owner of KBCB Bellingham, is selling the station in suburban Seattle to Fox Television Stations for $10 million, according to an application filed at the Federal Communications Commission. KBCB now carries ShopHQ and Estrella TV programming.

Amazon will battle the FTC over kids’ in-app purchases, rejecting a Google-style settlement

Amazon is doubling down in an unusual lawsuit with the federal government, which is suing the retail giant for allowing kids to make one-touch purchases from apps on the Kindle Fire device.

The lawsuit is unusual because Apple and Google have already settled with the Federal Trade Commissions over similar allegations, and agreed to pay $32 million and $19 million in refunds to parents, respectively. The FTC says all three companies conducted unfair trade practices by selling so-called “bait app” game that are typically free, but invite the player to purchase “acorns” or some other type of digital good. In its complaints against Amazon, the FTC says “thousands” of parents complained after their kids ran up bills, sometimes worth hundreds of dollars, in app expenses on their Kindles. Amazon filed a renewed dismissal request that suggests the government’s complaint is misguided and over-zealous.

Warren Buffett: Papers no longer primary

Though Warren Buffett owns several newspapers and believes in journalism, newspapers are no longer a primary source for the public, the billionaire investor told POLITICO Editor-in-Chief John Harris.

"Journalism is everything. Portions of journalism have declined in importance and it'll continue to. It's too bad. Newspapers were primary 30 or 40 years ago in stock market prices or baseball scores, where you could find a house, where you could find a job -- all of those areas, they're no longer primary in," Buffett said. "They're just less important to people than they were before, but news is still important to people and they're getting it one way or another."