Monday, June 10, 2019
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FCC Proposes Capping Fund Used to Close the Digital Divide
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States Add to Scrutiny on Google, Facebook, Other Big Tech
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Broadband
On Friday, May 31, the Federal Communications Commission launched a proceeding to seek comment on establishing an overall cap on the Universal Service Fund (USF). USF programs provide subsidies that make telecommunications and broadband services more available and affordable for millions of Americans. The NPRM asks a lot of questions over how to cap the programs. But a crucial one we ask: Does this NPRM actually move the U.S. closer to closing the digital divide?
Cable
Comcast Hit with $9.1 Million Penalty in Washington State for Bogus Service Protection Plan Billing
A Washington State judge ruled that Comcast violated consumer protection laws more than 445,000 times, bogusly charging thousands of state cable consumers for a $5.99 plan they didn’t even know they were getting. Judge Timothy Bradshaw ordered Comcast to pay $9.1 million in penalties and ordered Comcast to pay back all the customers it has been ruled to have misled, with 12% interest. That figure could exceed another $3 million.
State Attorney General Bob Ferguson, who filed the suit in 2016, counted 30,946 Washington Comcast customers who were charged for the service within the span of July 1, 2014 and June 30, 2016, and didn’t even know they were getting it. The AG reported another 18,660 who were allegedly misled about the true cost of the plan. “Comcast refused to accept responsibility for its egregious conduct that resulted in Washingtonians losing money every month for a product they did not want or request,” WA AG Ferguson said. “Instead of making things right for Washingtonians, Comcast sent an army of corporate lawyers into court to try to avoid accountability.”
State attorneys general are preparing for their own investigations into big tech platforms including Google and Facebook, based on concerns that largely mirror those driving probes by the Justice Department, the Federal Trade Commission and Congress. Several state attorneys general and aides said a core group of AGs has been discussing how to address antitrust-related concerns around big tech companies for some months. One official estimated the number of attorneys general who are involved at between 12 and 20. While the federal government still carries the most clout, “meaningful litigation to check companies over the last 30 years seems to be starting out more and more from the state AGs,” said Jeff Landry, the Louisiana attorney general, in a recent interview. “Now it’s up to the AGs and DOJ and FTC...to solve” the problems.
The Federal Trade Commission has sent top antitrust officials into the heart of Silicon Valley to seek out complaints about anti-competitive behavior, an unusual move that offers yet another hint about the government’s growing interest in policing the industry's giants. The weeklong tour included private meetings between leaders of the FTC's new technology task force and more than a dozen industry players to discuss the state of their businesses and market competition challenges, apparently. During that same trip, the head of the FTC's bureau of competition made a direct plea to attendees at an antitrust conference in Palo Alto (CA) to share any evidence of anti-competitive tech mergers.
Two House lawmakers looking to craft a consensus data privacy bill found themselves on opposite sides of an emerging debate: whether legislation should create a new privacy division at the Federal Trade Commission. Rep. Jan Schakowsky (D-IL), who heads the House Commerce Committee's Consumer Protection Subcommittee, said she’ll pursue that option. “At this point, I think we will not be calling for a separate independent agency, but we will be calling for a division within the Federal Trade Commission,” she said. But the suggestion drew pushback from her GOP counterpart. “I agree that the FTC should be the cop on the beat when it comes to enforcement of privacy standards, but I’m focused on helping consumers through limited and specific jurisdiction of the FTC, not through creating even more bureaucracy,” said Rep. Cathy McMorris Rodgers (R-WA), the top Republican on the subcommittee. Chair Schakowsky, however, said she’s willing to advance a bill without bipartisan support. “Obviously it would be a great thing if we could do it with the Republicans,” she said, but later added, “We want to, plan to, with or without them.”
Content
Court declines to hold edge providers liable for false third-party content posted on their sites, even if they know info is false
The US Court of Appeals for the DC Circuit has declined to hold edge providers liable for false third-party content posted on their sites, even if they know the information being posted is false. Google, Microsoft and Yahoo! are not responsible for flooding the online search market with info on "scam" locksmiths, if the market has been so flooded, because such liability is barred by the Communications Decency Act, whose much-in-the-news Sec. 230 holds that the edge can't be treated as a publisher of third party content on their platforms. The Court said a complaint by 14 locksmith companies that edge providers had conspired to flood the market with scam search results was rightly dismissed by a lower court as barred by the Communications Decency Act. "As courts uniformly recognize, [Sec.] 230 immunizes internet services for third-party content that they publish, including false statements, against causes of action of all kinds," it said.
Google has warned the Trump Administration it risks compromising US national security if it pushes ahead with sweeping export restrictions on Huawei, as the technology group seeks to continue doing business with the blacklisted Chinese company. Senior executives at Google are pushing US officials to exempt it from a ban on exports to Huawei without a licence approved by Washington. Google is concerned it would not be allowed to update its Android operating system on Huawei’s smartphones, which it argues would prompt the Chinese company to develop its own version of the software. Google argues a Huawei-modified version of Android would be more susceptible to being hacked, apparently. Huawei has said it would be able to develop its own operating system “very quickly”.
$4.7 billion is the amount that Google made from the work of news publishers in 2018 via search and Google News, according to a study by the News Media Alliance. That $4.7 billion is nearly as much as the $5.1 billion brought in by the United States news industry as a whole from digital advertising in 2018 — and the News Media Alliance cautioned that its estimate for Google’s income was conservative. For one thing, it does not count the value of the personal data the company collects on consumers every time they click on an article like this one.
The News Media Alliance is making the study public in advance of a House subcommittee hearing on June 11 on the interrelationship of big tech companies and the media.
Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org) and Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.
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