December 2016

Broadband Competition Policy: The Final Thoughts and First Principles

Each of these themes runs through the topic of these remarks: how the law, as I have seen it develop at the Antitrust Division and the Federal Communications Commission, has and can create and protect economic opportunity in the marketplace of broadband Internet access services provided to individual consumers. I’d like to structure this discussion around four primary themes:

First, competition is the best driver of innovation and consumer benefits in the Internet ecosystem; that ecosystem in which broadband connectivity is a critical component. Thus it is important to understand the state of competition, especially in those high speed connections that provide today the platform for so many complementary services provided by what we now call “the edge.”

Second, both antitrust law and public policy must rest upon a sound understanding of the incentives and abilities of broadband providers to artificially shape competition not only in the markets for residential Internet access but also in complementary markets across the Internet ecosystem. Here it is valuable to reflect upon the decades-long conclusion that telecommunications networks hold gatekeeper power that can be used to threaten competition.

Third, government should protect competition from artificial constraint that injures consumers and, especially in dynamic markets, threatens the future of innovation. The shared, overlapping jurisdiction of the FCC and the division focuses on the review of telecommunications mergers. Such reviews should be carried out always with a clear- eyed vision of the impact of market conditions on consumers today and innovation tomorrow.

Finally, the FCC has determined that an Open Internet advances economic and social goals so important that they must be preserved in the face of both obvious and subtle threats; threats that have long-been identified as well as those that are nascent or novel.

Ensuring a Fair and Competitive Marketplace

President Obama discussed the importance of fair competition in the marketplace. The principle of fair competition isn’t a Democratic or a Republican idea – it’s an American idea.

Over the past eight years, the Obama Administration has taken many actions to keep the marketplace fair, including: defending a free, open, and accessible internet; cracking down on conflicts of interest by making sure professionals who give retirement advice do so in the consumer’s best interest; and – just this week – standing up for beef, pork, and poultry growers when they’re treated unfairly. The President believes our free-market economy only works when there’s competition and rules are in place to keep it fair, open, and honest. That’s what this is all about – ensuring that everyone has a chance to compete by leveling the playing field and keeping the rules clear and consistent. President Obama defended his network neutrality legacy: "My administration has done a lot to keep the marketplace fair. We defended a free, open, and accessible internet that doesn't let service providers pick winners and losers."

Ross’ To-Do-List Comes Together at Commerce

Commerce Department transition briefing documents lay out actions, issues and potential conflicts of interest that Wilbur Ross will have to deal with in his first 100 days, assuming he is confirmed to lead the sprawling agency. The documents, which appear to have been prepared for members of Trump's Commerce landing team, shed some light on how the agency is framing a number of issues, including at the United States Patent and Trademark Office and the National Telecommunications and Information Administration. For the first 100 days of the Trump Administration, the document raises the following for NTIA: 1) broadband and two possible bills concerning infrastructure and tax reform, 2) FirstNet, 3) a revision of the Telecommunications Act of 1996, 4) passage of the Mobile Now Act, 5) oversight of Internet governance, and 6) next generation 911 legislation.

Sunlight will endure

Dec 16, we announce that Sunlight will continue its role as a nonpartisan advocate for open government under the leadership of Executive Director John Wonderlich. Alex Howard will be the new Deputy Director, helping to lead Sunlight into the next stage of its evolution.

Over the past two months, we have heard from people around the United States, indeed around the world, of their regard for the role the Sunlight Foundation has played in the global transparency movement. Developments over the past two months have made it clear how important Sunlight’s continued work in the public interest is and can be, as an independent institution. Unfortunately, several staff will be departing as part of this transition. Sunlight will continue to confront key challenges facing democracy, including conflicts of interest and other forms of corruption, and other threats to open government, press freedom, undisclosed influencers and regressive legislation and regulation.

Everything the U.S. Government Is Doing to Help the Private Sector Build the Internet of Things

One way to accelerate development and adoption of the Internet of Things is for the US federal government to be an early adopter. However, in addition to being an early adopter, the US government has a significant opportunity to support private-sector efforts at building the Internet of Things through other activities, including programs to provide technical resources; strengthen cybersecurity; develop industry-friendly regulations; ensure spectrum availability; support research, development, and demonstration; and coordinate stakeholders. Many of these programs are underway, although they often lack the coordination and scale necessary to support the Internet of Things as completely as possible. The purpose of this report is to shine a light on these activities, so policymakers have a better understanding of what is being done today and where gaps exist.

Google facing FTC scrutiny over privacy — yet again

Consumer advocates have filed a complaint with the Federal Trade Commission charging that Google violated user privacy through a policy change that gives the company more leeway to build profiles of people as they browse the Web and use Google services. The complaint, submitted by advocacy groups Consumer Watchdog and the Privacy Rights Clearinghouse, alleges that Google acted in a “highly deceptive manner” in changing its privacy policy in June to allow the merging of data collected by various services owned by the company, such as Google Maps, Google search and the DoubleClick online advertising service. The result, the groups say, allows for the gathering of more comprehensive information on most people who use the Web. The changes, which were activated if users opted in when prompted by a query, were widely covered by tech-oriented news sites at the time.

The Hidden Power of the Privacy Policy, the Text We All Ignore

As the Evernote saga recently showed, there are quite a few reasons for a privacy policy to exist, and one of those is that it helps the public know when the apps they use are breaking the contract between the company and the end user. But what if that contract just wasn’t there at all? Turns out that this is a more common situation than you’d think, in part due to lax detection and oversight.

In Nov, researchers at Carnegie Mellon University cranked up this discussion by analyzing 18,000 Android apps in Google’s Play store. Roughly half of the apps studied didn’t have privacy policies at all, despite the fact that more than two thirds of apps (71 percent) used some form of personally identifiable information on the part of the user.

Indigenous people are left poor as tech world takes lithium from under their feet

Argentina: In the thin air of the salt flats here, nearly 13,000 feet above sea level, the indigenous Atacamas people face a constant struggle. Yet beneath their ancestral land lies a modern-day Silicon Valley treasure: lithium.

The silvery-white metal is essential for the lithium-ion batteries that power smartphones, laptops and electric vehicles, and the popularity of these products has prompted a land rush here. Mining companies have for years been extracting billions of dollars of lithium from the Atacama region in Chile, and now firms are flocking to the neighboring Atacama lands in Argentina to hunt for the mineral known as “white gold.” But the impoverished Atacamas have seen little of the riches. One lithium company, a joint Canadian-Chilean venture named Minera Exar, struck deals with six aboriginal communities for a new mine here. The operation is expected to generate about $250 million a year in sales while each community will receive an annual payment — ranging from $9,000 to about $60,000 — for extensive surface and water rights.