October 2017

Chairman Pai Announces Proposal To Assist Efforts To Restore Communications Networks In Puerto Rico And U.S. Virgin Islands

Federal Communications Commission Chairman Ajit Pai released the following statement on a proposed order that would enable carriers in Puerto Rico and the US Virgin Islands to use their Universal Service Fund allocations to more quickly rebuild networks:

“Hurricane Maria caused catastrophic damage to communications networks in Puerto Rico and the U.S. Virgin Islands. Yesterday, as part of the FCC’s ongoing work to assist with restoration efforts, I shared with my colleagues an order that would quickly make available up to $76.9 million of funding to repair wireline and wireless communication networks and restore communications services in Puerto Rico and the U.S. Virgin Islands. Specifically, I am proposing to allow carriers to use money provided through the Universal Service Fund’s high-cost program to repair and restore communications networks throughout Puerto Rico and the U.S. Virgin Islands. I am also proposing that we give carriers operating in these territories the option of receiving USF funding in advance. Instead of receiving a standard monthly payment, carriers could elect this month to receive seven months’ worth of funding immediately in order to expedite repair and restoration efforts. I look forward to working with my colleagues on this Order. Given the urgent situation in Puerto Rico and the U.S. Virgin Islands, I am asking Commissioners to approve it as soon as possible. If this proposal has not been adopted by the FCC’s October 24 meeting, we will vote on it then.”

FCC Commissioner Carr names Chief of Staff

FCC Commissioner Brendan Carr announced that Jamie Susskind has joined his office as Chief of Staff and Legal Advisor for wireline issues. Susskind joins Commissioner Carr’s office from the United States Senate, where she served as Chief Counsel to Sen Deb Fischer (R-NE). In that role, Susskind managed the Senator’s priorities on the Senate Commerce Committee, as well as the Senate Judiciary Committee and the Senate Homeland Security and Governmental Affairs Committee. Prior to joining Senator Fischer’s office, Susskind was detailed from the FCC to serve as Counsel to the Senate Communications Subcommittee. Previously, Susskind worked in the FCC’s Wireline Competition Bureau, where she held various roles, including Legal Advisor to the Bureau Chief and Acting Assistant Division Chief of the Pricing Policy Division. Earlier in her career, Susskind was a Judicial Law Clerk for the Honorable Mary J. Schoelen on the United States Court of Appeals for Veterans Claims. She graduated from the Antonin Scalia Law School and received her undergraduate degree from the University of Michigan. Commissioner Carr also announced that Nathan Eagan, who has been serving as Acting Legal Advisor for wireline issues while on detail from the Wireline Competition Bureau, will be rejoining the Bureau.

Anthony Scaramucci Announces Mystery Media Venture

The arc of Anthony Scaramucci’s career is long and strange, and lately it has bent toward ignominy. After being fired by President Donald Trump, sued for divorce and turned into a late-night piñata for his foul-mouthed speaking habits, Scaramucci is trying to mount a comeback with a media venture he is calling The Scaramucci Post.

So far, the project’s contours are vague. “It’s going to start out experiential on the net,” Scaramucci, an American flag pinned to his lapel, said during a launch party at the Hunt & Fish Club on West 44th Street. He was invited to elaborate. “We’re going to create traffic and content and an experience using Facebook, Instagram and Twitter,” Scaramucci said. (The @ScaramucciPost Twitter account, with its caveat that “Follows ≠ Job Offers,” has been something of a mystery in political circles.) The publication is so devoted to its social media strategy that it has no journalists, no articles and no website — apparently by design. “You’ll find that if you don’t have a website, guess what? You don’t have any server charges,” Scaramucci said. Later, he conceded that he had “no idea what the Scaramucci Post is.”

History proves how dangerous it is to have the government regulate fake news

[Commentary] Italy’s antitrust chief Giovanni Pitruzzella feels so overwhelmed by the amount of information on the internet that he has called for government regulation to fight fake news. Pitruzzella builds his case by contrasting the First Amendment with the European Convention on Human Rights, which he argues provides no constitutional protection of “fake news.” This is due to an interpretation of the limits of protected speech that says that the distribution of “fake news,” in Pitruzzella’s words, violates Europeans’ “right to be pluralistically informed.” Yes, our digital era and the explosion of speech and communication on social media are unique.

But the introduction of the printing press in the 15th century and its impact on the world in the ensuing centuries may serve as an instructive analogy from which Pitruzzella may take a lesson or two. In the 16th and 17th century, access to the press triggered waves of fake news and dissemination of wild conspiracy theories about witches and millenarian crazes. Religious fanaticism was printed side-by-side with scientific discoveries. During the first century after Gutenberg, print did as much to spread lies and false information as enlightened truth.

[Flemming Rose is a WorldPost contributor and a senior fellow at the Cato Institute. Jacob Mchangama is director of the Copenhagen-based think tank Justitia.]

Watchdog: UN Ambassador Haley violated federal law by retweeting President Trump endorsement

US Ambassador to the United Nations Nikki Haley's use of her Twitter account violated a federal law that bars federal employees from using their offices for political purposes, the U.S. Office of Special Counsel said Oct 3. In a letter to the watchdog group Citizens for Ethics and Responsibility in Washington (CREW), the deputy chief of OSC's Hatch Act Unit said that Haley was in clear violation of the Hatch Act when she retweeted the president's endorsement of Ralph Norman, who was running for a South Carolina House seat at the time. Norman went on to win the election. The retweet suggested that she was acting in her official capacity when she appeared to second the president's endorsement, according to the OSC.

ACA to Pai: Blackouts Are Bad-Faith Bargaining Tactics

The American Cable Association wrote Federal Communications Commission Chairman Ajit Pai Oct 3 to ask him to add retransmission blackouts to the list of off-limits bad-faith bargaining. The FCC has rules that require bargaining in good faith, but under Democratic chair Tom Wheeler, it chose not to add blackouts to that list when asked by the ACA and others to do so. It is unlikely that Chairman Pai will go where a Democratic predecessor did not, but ACA cited Lilly Broadcasting's brief blackout on Dish in a Hurricane Maria-affected market as the kind of "intolerable" situation that needed FCC remedy, as well as pointing to Pai's concerns about that blackout.

Washington failed to regulate Big Tech—and now it’s about to discover that it can’t

Companies like Facebook, Google, and Amazon dominate their markets, and have deep pockets and armies of lobbyists. That, combined with historical precedent, gridlock in Congress, and the Donald Trump White House’s aversion to regulation in general, means passing new laws or rules to rein them is going to be a tough battle, some government and industry veterans say.

As the internet and tech industry in the US has grown in the past two decades, not only has federal rule-making not kept pace, but the government hasn’t adapted to oversee it. In recent years, tech companies from Airbnb to Uber to Google have poured money into lobbying in Washington DC and now have sizable in-house and outside teams that regularly meet with Congress, fund think tanks, and try to influence how lawmakers, federal employees, and the general public see the industry. The industry’s total lobbying spending jumped from $1.2 million in 1998 to $59.2 million in 2016, and it’s on pace to meet or beat that amount in 2017.

EU to hit Amazon with bill for Luxembourg back taxes

The European Union will order Amazon to pay several hundred million euros in back taxes on Oct 4. The EU’s enforcement arm, the European Commission, opened up an investigation three years ago into a partnership between Amazon and Luxembourg that allowed the e-commerce giant to shield some of its assets from taxation. The fine would be the latest action Europe has taken to try to rein in American tech giants. In a similar move in 2016, the EU ordered Apple to pay 13 billion euros in back taxes. The company allegedly benefited improperly from tax laws in Ireland.