July 2017

Democrats’ push for a new era of antitrust enforcement, explained

As congressional Democrats rolled out their new “Better Deal” agenda for the American people, even some in their own ranks were surprised by the level of interest in the party’s new agenda on antitrust and competition policy. One reason for that is that even some members of Congress may not be aware of how significant the commitments are that Democrats are making. After all, to a casual observer/member of Congress, invocations of the interests of “workers” and “small businesses” can easily seem like boilerplate rhetoric — the mom and apple pie of economic policy. But they actually seal the deal on a significant transformation of the party’s approach to anti-trust issues, one that’s actually been building for some time. Democrats are saying, with increasing clarity, that they want to overthrow a legal paradigm that’s existed for about 40 years and which held that consumer welfare — typically as measured by consumer prices — is the sole relevant metric for making antitrust policy.

Tech Companies Policing the Web Will Do More Harm Than Good

[Commentary] Legislation or regulations requiring companies to remove content pose a range of risks, including potentially legitimizing repressive measures from authoritarian regimes. Hate speech, political propaganda, and extremist content are subjective, and interpretations vary widely among different governments. Relying on governments to create and enforce regulations online affords them the opportunity to define these terms as they see fit. Placing the power in the hands of governments also increases the likelihood that authoritarian regimes that lack Germany's liberal democratic tradition will criminalize online content critical of those governments and, ultimately, create another mechanism for oppressing their own citizens.

Instead of government intervention, civil society should recognize and build upon the efforts of platforms that address these issues, while also pressing companies to step up to do even more.

[Tara Wadhwa is the associate director of the NYU Stern Center for Business and Human Rights. Gabriel Ng is a fellow at the Center]

Chairman Pai's Response to Members of Congress Regarding Open Internet

On July 17, 2017, Federal Communications Commission Chairman Ajit Pai responded to several members of Congress regard the Restoring Internet Freedom Notice of Proposed Rulemaking. Numerous lawmakers had written to Chairman Pai expressing concern that the proposal would roll back critical consumer protections by dismantling the current network neutrality rules.

Pai said he shared their view on the importance of having a free and open Internet. He wrote, "[I]n this proceeding, the Commission is currently examining the best legal framework for both protecting Internet freedom and providing strong incentives for the private sector to build and expand next-generation networks so that all Americans can be connected to digital opportunity. Currently, the FCC is in the midst of receiving public comment on this matter, and we will go where the facts and the law lead us. Your views are very important and will be entered into the record of the proceeding and considered as part of the Commission's review. I look forward to continuing to work with you and your colleagues on this critical issue."

Chairman Pai's Response to Reps. Pallone, Cummings, DeGette, Kelly, Doyle and Connolly Regarding ECFS Cyberattack

On June 26, 2017, Reps Frank Pallone (R-NJ), Elijah Cummings (D-MD), Diana DeGette (D-CO), Robin Kelly (D-IL), Mike Doyle (D-PA), and Gerald Connolly (D-VA) wrote to the Federal Communications Commission to express concerns about the FCC's cybersecurity preparedness and the multiple reported problems with the FCC's website in taking public comments in the net neutrality proceeding.

On July 21, FCC Chairman Ajit Pai responded by saying the Information Technology (IT) staff at the FCC immediately addressed the disruption to the FCC's Electronic Comment Filing System (ECFS). Chairman Pai wrote, "Although i cannot guarantee that we will not experience further attempts to disrupt our systems, our staff is constantly monitoring and reviewing the situation so that everyone seeking to comment on our proceedings will be afforded the opportunity to do so."

Chairman Pai's Response to Senator Thune Regarding Mid-Band Spectrum

On June 21, 2017, Senate Commerce Committee Chairman John Thune (R-SD) wrote to Federal Communications Commission Chairman Ajit Pai regarding wireless spectrum, writing, "I am pleased to hear that the Commission may be considering a new proceeding to identify new spectrum uses in a range of bands. As you look for ways to better utilize spectrum, I urge you to explore possible new allocations in the mid-band frequencies, perhaps including the 3.7 GHz and 6 GHz bands, and to begin a rulemaking proceeding focused on opening mid-band spectrum for both licensed and unlicensed networks."

On July 18, Chairman Pai responded by saying, "I have asked my colleagues at the Commission's August Open Meeting to initiate a new inquiry into opportunities for next-generation services--particularly wire less broadband services- in the spectrum range of 3. 7 GHz to 24 GHz. This inquiry will be conducted in close coordination with the National Telecommunications and Information Administration, and will focus on exploring opportunities in the mid-band frequencies for expanded flexible use. This inquiry will also explore long-term strategies the Commission can pursue to promote expanded spectrum access to meet the growing demand."

Chairman Pai's Response to Sens Moran, Manchin Regarding the Connect America Fund and Remote Area Fund

On June 22, 2017, Sens Jerry Moran (R-KS) and Joe Manchin (D-WV) wrote to Federal Communications Commission Chairman Ajit Pai, urging him to, "move forward with the Remote Areas Fund (RAF) to appropriately target Universal Service Fund support towards the most difficult to serve areas in our states that remain unserved."

On July 18, Chairman Pai responded by saying, " I was pleased to move forward with the bipartisan CAF Phase II Auctions Order earlier this year, which the Commission has now targeted to include extremely high-cost areas as well as the high-cost areas that were always part of the Connect America Fund. And that's why I was pleased that the Commission agreed to commence the Remote Areas Fund, which like the CAF Phase l1 Auction will employ technology-neutral rules, no later than one year after the commencement of the CAF Phase li auction."

Chairman Pai's Response to Sen Markey and Rep Doyle Regarding Business Data Services

On April 18, 2017, Sen Ed Markey (D-MA) and Rep Mike Doyle (D-PA) wrote to Federal Communications Commission Chairman Ajit Pai urging him to postpone the vote on the Business Data Services (BDS) Report and Order that was scheduled for a vote at the April 20, 2017 FCC meeting.

On July 17, Chairman Pai responded by saying, "In your letter, you suggest additional protections for small businesses and the need for a reasonable transition as well as a delay of the Commission's vote. Although the Commission was unable to accommodate your every request, I note that the Commission did deny incumbent carriers a catch-up adjustment to their existing rates in non-competitive areas and implemented a staged transition: In newly deregulated areas, price-cap carriers cannot raise their tariffed rates for special access services for a period of six months and have three years to transition to de-tariff their services. The Commission also emphasized that incumbents may not use the de-tariffng process to disturb existing contractual or other long-term arrangements-a contract tariff remains a contract even if it is no longer tariffed. Finally, the Commission adopted downward pricing flexibility in still regulated areas to ensure that small businesses in rural America have the opportunity to receive the same discounts now available in urban areas."

Chairman Pai's Response to Senator Blunt, Senator McCaskill and Reps. Hartzler, Luetkemeyer, Smith and Wagner Regarding CAF Phase II Competitive Bidding Process

On June 22,2 017, members of Congress from Missouri, Sens Roy Blunt (R-MO) and Claire McCaskill (D-MO), and Reps Billy Long (R-MO), Sam Graves (R-MO), Vicky Hartzler (R-MO), Blaine Luetkemeyor (R-MO), Jason Smith (R-MO), and Ann Wagner (R-MO), wrote to Federal Communications Commission Chairman Ajit Pai regarding completing the next steps under the Connect America Fund, and to state their opposition to any efforts or petitions to delay or alter implementation of the rules.

On July 18, Chairman Pai responded by saying, "The CAF 11 Auction Order adopted auction weights designed to give every bidder- no matter what technology they use-a meaningful opportunity to compete for federal funds, while ensuring the best value for the American taxpayer. With this Public Notice, we are seeking comment on the procedures to be used during this auction. Moving forward now will put us on track to conduct the auction in 2018."