Thursday, June 17, 2021
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Make Broadband More Affordable and Accessible for All Americans
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Apple Pre-Installed Apps Would Be Banned Under Antitrust Package
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The pandemic made it clearer than ever how much we depend on a fast, reliable broadband. But getting online for millions of Americans is too costly and in many cases the service is inadequate. Robust competition creates scrutiny and accountability that can prevent big telecommunications companies from expanding data cap limits when people are more dependent than ever on an internet connection. Even during the pandemic, Comcast and other internet service providers still enforce these data caps in markets where they face little or no competition. Both the Biden administration's $100 billion broadband proposal and the Accessible, Affordable Internet for All (AAIA) Act, introduced by Rep Jim Clyburn (D-SC) and Sen Amy Klobuchar (D-MN), have crucial provisions which can bridge the digital divide. The two plans are unified in the nullification of ISP-backed laws in 18 states that restrict community broadband networks, which have proven to be a viable competitive option for consumers. And requiring companies receiving federal funds to build new broadband networks that include an affordable option enables consumers with fewer means to acquire service, a provision in the AAIA Act. Given the absence of leadership from corporate actors, we need policymakers to step up and lead the way in connecting the unconnected. This is a great first step and a plan all Americans should rally behind.
[Jonathan Schwantes is senior policy counsel at Consumer Reports, where he focuses on telecommunications and competition issues affecting consumers in the broadband, television, media, and wireless markets.]
Apple would be prohibited from pre-installing its own apps on Apple devices under recently introduced antitrust reform legislation. Rep David Cicilline (D-RI), who is leading a push to pass new regulations for US technology companies, stated that a proposal prohibiting tech platforms from giving an advantage to their own products over those of competitors would mean Apple can’t ship devices with pre-installed apps on its iOS operating platform. The proposal is part of a package of five bipartisan bills that would impose significant new constraints on how tech companies operate, restricting acquisitions and forcing them to exit some businesses. Cicilline said the self-preferencing prohibition would also apply to Amazon's Prime subscription service because it disadvantages some sellers who rely on the e-commerce platform. The legislation sets out several criteria for qualifying services, including at least 50 million monthly active users in the US and a market captitalization of $600 billion.
Google and Amazon defended their smart-speaker businesses as US senators warned the grip the companies have over the market could harm competition and consumer privacy. Both Republicans and Democrats at a June 15 hearing raised concerns about what they said were anticompetitive practices, such as selling devices below cost and promoting companies' own services over those of competitors on their platforms. Representatives from Google and Amazon argued that they prevent this by offering an optional range of rival voice-assistant services on their own devices. The hearing marked the latest move by lawmakers to scrutinize the practices of the tech industry’s biggest companies as they consider potential reforms to antitrust laws to impose tighter regulations. Sen Amy Klobuchar (D-MN), who chairs the Senate Judiciary’s antitrust panel, and Sen Mike Lee (R-UT), the senior Republican on the antitrust panel, have both introduced their own legislation to overhaul and strengthen antitrust enforcement.
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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