January 2017

FCC Moves January Meeting From Jan 26 to Jan 31

The Federal Communications Commission has moved the January meeting from Jan 26 to Jan 31. In either event, it will come after FCC Chairman Tom Wheeler has left the building and the new Trump Administration has taken over. It is not clear yet which of the Republican commissioners will preside as acting chair, though it is likely senior Republican Ajit Pai. The FCC will now circulate a tentative agenda for the meeting on Jan 10 (three weeks beforehand, per custom).

The move of the meeting was to provide more time for planning following the change in administration and more time with the agenda, apparently, given that one of those Republican commissioners will almost certainly be presiding and in control of that agenda for the meeting.

Trump to tap Wall Street lawyer, Jay Clayton, to head SEC

President-elect Donald Trump announced that he will nominate Wall Street lawyer, Jay Clayton, to head the Securities and Exchange Commission. As chair of the SEC, which polices Wall Street and the financial markets, Clayton would play a key role in Trump's efforts to usher in a period of deregulation, including undoing parts of 2010’s financial reform legislation, known as the Dodd-Frank Act.

"Jay Clayton is a highly talented expert on many aspects of financial and regulatory law, and he will ensure our financial institutions can thrive and create jobs while playing by the rules at the same time,” Trump said in a statement. If confirmed by the Senate, Clayton would replace Mary Jo White, who announced shortly after the election that she would step down.

MPAA Congratulates Trump US Trade Representative Pick

Motion Picture Association of America chairman Chris Dodd congratulated US Trade Representative (USTR) nominee Robert Lighthizer on his appointment and called for working together to protect intellectual property and expand markets. The Trump Administration does not see eye-to-eye with the studios on the Trans-Pacific Partnership, however. The TPP is a historic Pacific Rim trade agreement with 11 other countries that TV and film producers had been pushing for as a way to expand trade and access to Asia-Pacific markets.

While MPAA hailed the agreement Trump has called it a bad deal that he wants out of and pledged that his negotiators will strike better ones. The USTR is the lead negotiator on such trade deals. “The MPAA congratulates Robert Lighthizer on his appointment by President-elect Donald Trump for USTR," said Dodd in a statement. "The American film and television industry is a key driver of the U.S. economy, and effective trade policies are crucial to its continued success. Our sector employs nearly two million American workers, while generating $16.3 billion in exports and registering a positive trade balance with nearly every country around the world."

This Is the Year Donald Trump Kills Net Neutrality

2015 was the year the Federal Communications Commission grew a spine. And 2017 could be the year that spine gets ripped out.

Over the past two years, the FCC has passed new regulations to protect network neutrality by banning so-called “slow lanes” on the internet, created new rules to protect internet subscriber privacy, and levied record fines against companies like AT&T and Comcast. But this more aggressive FCC has never sat well with Republican lawmakers. Soon, these lawmakers may not only repeal the FCC’s recent decisions, but effectively neuter the agency as well. And even if the FCC does survive with its authority intact, experts warn, it could end up serving a darker purpose under President-elect Donald Trump.

FCC Allows Univision to Boost Foreign Ownership

The Federal Communications Commission is allowing foreign investors to own up to a 49% equity stake in TV and radio station owner Univision, including up to a 40% stake by Mexico's Televisa. That came in a declaratory ruling this week after a petition by Univision and Televisa went unopposed. The FCC said it granted the petition "because this increased level of foreign investment in Univision will facilitate investment from new sources of capital in Univision that would not otherwise be available and encourage reciprocity by foreign governments."

Televisa supplies over a third of Univision's programming and bought an equity stake in Univision in 2010 (10% equity, 14.4% voting interest). Univision and Televisa had sought the declaratory ruling in advance of an initial public offering that could increase the foreign investment beyond the current 25%. "We find that the public interest would not be served by refusing to grant Univision’s petition for a declaratory ruling to permit foreign ownership of Univision Holdings...above the statutory cap of 25% and up to 49%."

Cyberwar for Sale

After a maker of surveillance software was hacked, its leaked documents shed light on a shadowy global industry that has turned email theft into a terrifying — and lucrative — political weapon.

FTC Announces Internet of Things Challenge to Combat Security Vulnerabilities in Home Devices

The Federal Trade Commission announced that it is challenging the public to create an innovative tool that will help protect consumers from security vulnerabilities in the software of home devices connected to the Internet of Things. The agency is offering a cash prize of up to $25,000 for the best technical solution, with up to $3,000 available for up to three honorable mention winner(s). The FTC is asking IoT Home Inspector Challenge contestants to develop a tool that would address security vulnerabilities caused by out-of-date software in IoT devices. An ideal tool might be a physical device that the consumer can add to his or her home network that would check and install updates for other IoT devices on that home network, or it might be an app or cloud-based service, or a dashboard or other user interface. Contestants also have the option of adding features such as those that would address hard-coded, factory default or easy-to-guess passwords. Submissions will be accepted as early as March 1, 2017 and are due May 22, 2017 at 12:00 p.m. EDT. Winners will be announced on or about July 27, 2017.

Tech Giants Seem Invincible. That Worries Lawmakers.

Nearly a year ago, I argued that we were witnessing a new era in the tech business, one that is typified less by the storied start-up in a garage than by a posse I like to call the Frightful Five: Amazon, Apple, Facebook, Microsoft and Alphabet, Google’s parent company. Together the Five compose a new superclass of American corporate might. For much of last year, their further rise and domination over the rest of the global economy looked not just plausible, but also maybe even probable. In 2017, much the same story remains, but there is a new wrinkle: The world’s governments are newly motivated to take on the tech giants.

In the United States, Europe, Asia and South America, the Five find themselves increasingly arrayed against legal and regulatory powers, and often even against popular will. The precise nature of the fights varies by company and region, including the tax and antitrust investigations of Apple and Google in Europe and Donald J. Trump’s broad and often incoherent criticism of the Five for various alleged misdeeds. This is the story that will shape the contours of the next great era in tech: Five huge companies that can only get bigger are set against governments that increasingly see them as a clear threat to governing authority. So, happy New Year.

We Need to Teach Kids How to Be Skeptical of the Internet

The internet is a beautiful escape, the world's most wide-reaching communication device, the biggest business ever conceived, and a leveler of who has the tools to create art. But it’s also a perfectly-honed propaganda machine that bounces back our biases so often it’s become a hazard to the future. According to a year-long study from Stanford researchers, the inability of young students to tell “fake news” from real news is alternately “dismaying,” “bleak,” and a “threat to democracy.” If the children are the future, the future looks bleak. What age should educators—both at home and school—offer lessons on how to use the internet? As soon as humanly possible.