Wednesday, September 26, 2018
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Inside the private DOJ meeting that could lead to new investigations of Big Tech
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Officials from 14 states' top legal offices and the Justice Department have begun a coordinated conversation about ways to keep tabs — and potentially rein in — the fast-growing tech giants. The gathering had been designed to focus on social media platforms and the ways in which they moderate content online, following complaints from President Donald Trump and other top Republican lawmakers that Silicon Valley companies deliberately seek to silence conservative users and views online. Attorney General Jeff Sessions opened the meeting by raising questions of possible ideological bias among the tech companies and sought to bring the conversation back to that topic at least twice more. But the discussion proved far more wide-ranging, as participants steered the conversation toward the privacy practices of Silicon Valley. Those in the meeting did not zero in on specific business tactics, but they did cover such issues as how companies collect user data and what they do with it once the information is in their hands. “We were unanimous. Our focus is going to be on antitrust and privacy. That’s where our laws are,” said MS attorney general Jim Hood. Most in the meeting agreed that the DOJ would probably play a role in any legal action against the tech industry. Still, much of the group’s momentum now appears to be driven by an emerging multistate inquiry — not the DOJ — with NE attorney general Doug Peterson expected to coordinate the AG’s conversation. “[The] AGs are really focused on understanding more as to what consumers are truly consenting to and what they may not know is going on with their data,” DC attorney general Karl Racine said.

Google, Facebook, and Twitter have no incentive to inject bias in their platforms, because consumers across the political spectrum use social media and discriminating against any of them could drive people away. Consumers would be substantially worse off if social media platforms such as Facebook and Twitter were broken up. Their value to consumers derives in no small part from the fact that they allow people to communicate with their friends and families with a single click.
If policymakers are genuinely concerned about the value internet platforms are providing to their consumers, the answer is not to demand that they prioritize political neutrality in their search results. That would necessarily force them to de-emphasize other factors such as timeliness, relevance and accuracy, which consumers tend to favor. Instead, policymakers should allow businesses to determine the best way to serve their customers. The Justice Department should back off its unseemly political attacks on social media platforms, and policymakers should continue to employ a light-touch regulatory approach, so consumers can benefit from the platforms’ continued growth and innovation.
[Daniel Castro is vice president of the Information Technology and Innovation Foundation and director of its Center for Data Innovation. Michael McLaughlin is a research assistant at ITIF.]

Google Chief Executive Sundar Pichai plans to appear at a private meeting of top GOP lawmakers on Sept 28 and again at a public hearing later in 2018, responding to new scrutiny of the company’s work with China, its market power and alleged bias against conservatives in its search results. “Google has a lot of questions to answer about reports of bias in its search results, violations of user privacy, anticompetitive behavior and business dealings with repressive regimes like China,” said House Majority Leader Kevin McCarthy (R-CA), who is organizing Sept 28’s meeting. He added that Pichai has “kindly” agreed to field Congress’s questions with Republican members. Pichai also is expected to appear at a House Judiciary Committee hearing after the November election.
Twitter announced a new policy addressing “dehumanizing speech,” which will take effect later in 2018, and for the first time the public will be able to formally provide the company with feedback on the proposed rule. The policy will prohibit “content that dehumanizes others based on their membership in an identifiable group, even when the material does not include a direct target.” It expands upon Twitter’s existing hateful conduct policy prohibiting users from threatening violence or directly attacking a specific individual on the basis of characteristics such as race, sexual orientation, or gender. Susan Benesch, whose research Twitter cites in its announcement, defines dehumanizing speech as “describing other people in ways that deny or diminish their humanity,” like comparing them to insects, demons, or bacteria. Twitter is hosting an open comment period on the rule before it goes into effect, a practice seemingly modeled after the US federal rule-making process. The comment period will remain open until Oct 9th.

The US Department of Commerce’s National Telecommunications and Information Administration (NTIA) issued a Request for Comments on a proposed approach to consumer data privacy designed to provide high levels of protection for individuals, while giving organizations legal clarity and the flexibility to innovate. The Request for Comments is part of a transparent process to modernize US data privacy policy for the 21st century. In parallel efforts, the Commerce Department’s National Institute of Standards and Technology is developing a voluntary privacy framework to help organizations manage risk; and the International Trade Administration is working to increase global regulatory harmony.
The Trump Administration’s proposed approach focuses on the desired outcomes of organizational practices, rather than dictating what those practices should be. With the goal of building better privacy protections, NTIA is seeking comment on the following outcomes:
- Organizations should be transparent about how they collect, use, share, and store users’ personal information.
- Users should be able to exercise control over the personal information they provide to organizations.
- The collection, use, storage and sharing of personal data should be reasonably minimized in a manner proportional to the scope of privacy risks.
- Organizations should employ security safeguards to protect the data that they collect, store, use, or share.
- Users should be able to reasonably access and correct personal data they have provided.
- Organizations should take steps to manage the risk of disclosure or harmful uses of personal data.
- Organizations should be accountable for the use of personal data that has been collected, maintained or used by its systems.
- NTIA also is seeking comment on several high-level goals identified in the Request for Comments setting the broad outline of the direction that the Trump Administration should take to achieve U.S. consumer privacy protections.
Comments are due by Oct 26, 2018.

The Senate Commerce Committee will hold a hearing on Sept 26 on “Examining Safeguards for Consumer Data Privacy,” intended as an opportunity for lawmakers to learn about “possible approaches to safeguarding privacy more effectively.” That’s great except for two small things. No consumers were invited to speak on safeguarding consumer data privacy. No consumer advocates were invited to speak on safeguarding consumer data privacy. Who was invited? That would be representatives of some of the country’s biggest tech and telecom companies — businesses that have a highly vested interest in collecting and exploiting as much consumer data as they can get their mitts on. A likely upshot of the hearing is that each company will make the case for why a federal data-privacy law should preempt state laws. And there’s a good reason for that. They’re terrified of a landmark privacy law passed by CA in June and set to take effect at the beginning of 2020.
If nothing else, here’s what lawmakers need to keep in mind: The federal government can and should set regulatory base lines for businesses. But states — as conservatives keep telling us — know their citizens best and should have the last word. Enact a federal privacy law. Please. But make it clear that any such law will be superseded by stronger provisions at the state level. Because Republicans believe in states’ rights. Right?
[David Lazarus is a business columnist for the LA Times]

An Internet service provider can see every website that you choose to access. And with the scrapping of Obama-era privacy regulations in 2017, the US federal government has no rules against ISPs collecting and selling your information to marketers. But new tech fixes are plugging the privacy holes that the government won’t. The effort began in April, when Firefox browser maker Mozilla and content delivery network Cloudflare rolled out measures to block one of the easiest ways for ISPs to snoop. They started encrypting the browser’s “DNS lookup” of a website’s numerical IP address–converting Google.com to 172.217.7.196, for instance.
Now Mozilla and Cloudflare, and possibly other tech companies like Apple, will start to close another loophole–one that reveals the identity of a multitude of smaller websites. Big sites–think Facebook, Google, Netflix–have their own IP addresses on the internet, currently making their identities impossible to hide. But a lot of smaller sites live together on server farms at shared IP addresses. To reach the right site among many at a particular address, your browser has to specify the site’s server name identification (SNI). Anyone sitting between you and the server–be it an ISP, a nosy government, or a hacker on a public Wi-Fi network–can easily read these SNIs to track your browsing. An emerging technology called Encrypted SNI, or ESNI, hides that information. Unlike encrypted IP address lookups, which Mozilla and Cloudflare simply switched on in April, ESNI will take a while to roll out.
Internet/Broadband
FCC: Local Franchise Authorities Can't Regulate Broadband, Deletes Item from Sept 26 Meeting

The Federal Communications Commission has voted to confirm that a local franchise authority's (LFA) ability to regulate cable service does not extend to broadband and other non-cable services. Additionally, the FCC voted to confirm that in-kind commitments those authorities get from providers as part of franchise agreements count toward the 5% franchise fee cap, with the exception of providing public, educational and government (PEG) channels. The FCC has now deleted the "Clarifying Local Franchising Authorities Regulation of Cable Operators" item from its Sept 26 meeting agenda, saying it has now already been adopted. The Free State Foundation, whose supporters include major media companies, had hailed the FCC's planned Sept. 26 vote as important pushback on localities trying to re-regulate internet access. In its vote, the FCC has now responded to a 2017 court ruling by telling the court that the "mixed-use network ruling should be applied to prohibit LFAs from using their video franchising authority to regulate non-cable services offered over cable systems by incumbent cable operators," which includes internet access services, and clarifying that they can still regulate institutional networks.

Rep Jerry McNerney (D-CA), along with eight Democratic Reps on the House Commerce Committee, sent a letter to Federal Communications Commission Chairman Ajit Pai, requesting the proposed Streamlining Deployment of Next Generation Wireless Infrastructure Declaratory Ruling and Third Report and Order be removed from Sept 26’s FCC Open Meeting agenda. "[I]n order to achieve the best outcome for consumers, it is crucial that 5G be deployed in a way that carefully balances the interests of both communities and the wireless carriers. The Declaratory Ruling and Order clearly falls short of striking such a balance," they wrote. "The item assumes the savings that wireless carriers will have from paying lower fees will result in 5G deployment investment in rural areas. Yet, there is no guarantee that the savings will result in wider deployment, and indeed the Declaratory Ruling and Order places no obligations or commitments on carriers to do so. Given the potential consumer harms that could result from hamstringing cities and municipalities, it is important that these dynamics be further explored before the Commission takes such drastic action."

Lawmakers and consumer advocates are pressing telecommunication companies to ensure that rural areas are not left behind in the race to adopt fifth-generation, or 5G, mobile broadband technology. Rural advocates from both parties, such as Sens. Shelley Moore Capito (R-WV) and Jon Tester (D-MT), note that large areas of America still lack 4G or even 3G coverage. While most urban areas have access to high-speed internet and 4G mobile broadband, outside of the highways that cut across the country, huge swaths of America often lack any consistent broadband connection. Industry insists 5G broadband will help address the “digital divide” between highly connected urban areas and rural areas that have few and in some cases no options for affordable high-speed broadband. It sees wireless broadband as a means to provide connectivity to hard-to-reach rural areas.

Sept 28 will see a White House rally to promote US leadership in fifth generation (5G) wireless technology. There is no doubt that 5G is an important step forward for wireless technology that will benefit consumers and drive economic growth. However, it is time to take a deep breath and let logic temper emotional battle cries and political gamesmanship. We need to spend less time worrying about China and more time asking how we can we race to make 5G work for all Americans.
Let’s stop using the so-called “5G race” as a tool to ride roughshod over maintaining competitive markets, local self-determination, or as a get-rich-quick scheme for spectrum licensees. The US has the technical leadership. The US has the early 5G buildouts in major cities. What’s missing is a race to deliver 5G to all Americans. To accomplish universal 5G we must replace expedient political battle cries with creative thinking by both government and industry to maximize scarce capital, maintain competition, and deliver the promise of high-speed, low latency 5G service to every American.
[Tom Wheeler served as the 31st chairman of the Federal Communications Commission from 2013 to 2017.]

The Federal Trade Commission is sending out 22,671 refund checks to people who lost money to a mobile cramming operation that placed tens of millions of dollars in charges on their mobile phone bills without their permission. The refunds stem from a major FTC crackdown first announced in 2013. As part of the scheme, the defendants sent text messages containing celebrity gossip alerts, horoscopes, or “fun facts” to consumers and placed monthly subscription fees for these “services” on their mobile phone bills without their authorization. The practice of placing unauthorized charges on a consumer’s mobile phone bill is known as mobile cramming. This is the third round of refunds issued as part of the FTC’s crackdown on mobile cramming. The latest round of refunds, totaling $2,107,156.24, comes from assets recovered as part of a settlement with Tatto, Inc. The average check amount is $92.95.

Department of Justice antitrust chief Makan Delrahim says he is not "unilaterally disarming" his division, but that he is taking a number of reforms to speed the merger review process. "Provided that the parties expeditiously cooperate and comply throughout the entire process, we will aim to resolve most investigations within six months of filing," he said. For comparison, in 2017, "significant" merger reviews took on average 10.8 months to resolve, he said. To cut that timeline to six months, Justice is inviting parties to meet early with its antitrust team. Delrahim enumerated multiple reforms, including publishing a sample voluntary request letter, to give the parties a sense of what key deal info DOJ needs. He also pushed for publishing a model timing agreement, a process for speeding the mechanism by which parties comply with info requests and DOJ analyzes the deal, and reforming those agreements, including fewer depositions. Delrahim indicated the reform door needs to swing both ways. He said DOJ would expect the following from merging parties: No more of what he called "privilege log gamesmanship," which he said is parties trying to game the process by withholding large numbers of documents as privileged, then dumping them on DOJ later in the process.
Kids & Media
Children's advocacy groups to FCC: proposed deregulation of children's TV rules could spell the end of children's programming on broadcast TV

The Center for Digital Democracy, Campaign for a Commercial-Free Childhood, and the Benton Foundation told the Federal Communications Commission that if the agency proceeds with its proposed deregulation of children's TV rules, it could spell the end of children's programming on broadcast TV. "The FCC’s assumption that children’s television guidelines are no longer necessary because programming is available on other platforms is simply wrong," the groups told the FCC. "To obtain access to non-broadcast programming, households must have access to cable or broadband service, and be able to afford subscription fees and equipment. Many families, especially low-income families and families in rural areas, cannot access or afford alternative program options."
"Only children’s programs on broadcast and cable are subject to advertising limits and policies prohibiting deceptive and unfair advertising practices such as host-selling, and only television broadcasters are mandated to provide programming specifically designed to educate and inform children." By contrast, online offerings are for the most part “program-length commercials and 'native' ads designed specifically to promote and sell toys, fast-food and other products." The groups also cite the privacy drawbacks of relying on over-the-top. "[T]he NPRM fails to address the problem that children watching videos on YouTube, on mobile apps, and even on premium OTT [over-the-top] services, are subjected to invasive data collection, profiling and interactive ad targeting practices."

After years of debate, Congress is poised to vote on legislation that would cement the Department of Homeland Security’s role as the government’s main civilian cybersecurity authority. The Cybersecurity and Infrastructure Security Agency Act (HR 3359), which has been in the works since the Obama administration, would give the department a stand-alone cybersecurity agency with the same stature as other DHS units, such as the Federal Emergency Management Agency. The Senate could vote on the bill, which passed in the House in 2017, as early as the week of Sept 24 as it takes up a slew of cybersecurity-related legislation. Approving the legislation would mark a major shift in Congress’s views on whether DHS should lead the government’s efforts to protect federal computer networks, power plants and other critical infrastructure from digital attacks. Attempts to make DHS the government’s civilian cybersecurity hub have stalled amid resistance from some lawmakers who say the relatively young agency isn’t as well equipped to deal with cyberthreats as the National Security Agency or the FBI.

After a year of continued tension between President Donald Trump and the news media, the partisan divides in attitudes toward the news media that widened in the wake of the 2016 presidential election remain stark, according to a new Pew Research Center analysis. Specifically, strong divisions between Republicans and Democrats persist when it comes to support of the news media’s watchdog role, perceived fairness in political coverage, trust in information from both national and local news organizations, and ratings of how well the news media keep people informed.
Americans are particularly divided politically on whether or not they think news media criticism keeps political leaders in line – the so-called “watchdog role” of the news media. A vast majority of Democrats (82%) say in the survey conducted earlier in 2018 that they support the news media’s watchdog role, believing that news media criticism keeps political leaders from doing things that shouldn’t be done. On the other hand, the majority of Republicans (58%) think news media criticism gets in the way of political leaders doing their job. The 44-percentage-point gap between Democratic and Republican support for the watchdog role (82% vs. 38% respectively), along with the 47-point difference in 2017, are the largest measured by Pew Research Center in the more than three decades the question has been asked. In contrast, members of the two parties were about equally likely to support the news media’s watchdog role in 2016 during the Obama administration.
The findings also reveal low levels of trust in social media as a source for news and information among the public and members of both parties. While one-in-five Americans (21%) have a lot of trust in the information they get from national news organizations, that share is about five times as high as the portion that have a lot of trust in the information they get from social media sites (4%).

In March of 2017, Congress had just voted to allow internet service providers to sell the browser histories of consumers, a move that was greeted by an overwhelming backlash online. At the time, it seemed the browser history vote was politically poisonous for the Republican Reps who pushed it through. Yet House Communications Subcommittee Chairman Marsha Blackburn (R-TN), who became more identified than most lawmakers with the rollback, has not only survived politically, but is reaching higher. Nov 2018, she will square off in a hotly contested Senate battle in TN against former Gov Phil Bredesen (D-TN).
During her 15 years in the House, Rep Blackburn has been one of the most reliably active conservatives in tech policy, working to shape several high-profile debates around issues like network neutrality and consumer privacy. She had tried repeatedly, over years, to preempt net neutrality rules by passing legislation. In late 2017, after the Federal Communications Commission moved to repeal protections, Chairman Blackburn introduced a bill that would have instituted some rules, while enshrining the right of internet service providers to give preferential treatment to certain internet traffic. The legislation was quickly derided by activists as a “fake” net neutrality bill that was a backdoor attempt to undermine protections. Her attempt to bring back some of the internet privacy rules she’d helped gut, while also blocking state regulations, was met with similar skepticism. Like President Donald Trump, she has also built a foil out of Silicon Valley, which she has accused of being filled with liberal censors. While she already wields power over the tech landscape, her influence would grow with a move to the Senate. Before she gets there, her race against the net neutrality-supporting Bredesen will test the ability of tech policy questions to sway voters, and Silicon Valley’s appeal as a villain for the right.

Commissioner Maureen K. Ohlhausen announced her departure from the Federal Trade Commission upon the expiration of her term Sept 25. Ohlhausen was sworn in as a Commissioner on April 4, 2012, and served as Acting Chairman of the agency from January 25, 2017 to May 1, 2018. Commissioner Ohlhausen previously served the FTC in various capacities, including four years as the Director of the Office of Policy Planning. During her time leading the agency, the FTC was highly active in efforts to protect consumer privacy and promote data security. The agency brought 20 actions, including significant cases against the ride-sharing company Uber, the first connected toys case against VTech Electronics, as well as actions against computer manufacturer Lenovo, peer-to-peer payment service Venmo, and the revenge porn website MyEx.com. The FTC also increased enforcement of the European Union-United States Privacy Shield framework, settling charges against three US companies for misleading consumers about their participation in the framework. In addition, Commissioner Ohlhausen convened an Informational Injury Workshop to examine injuries to consumers from the use and exposure of their personal information, and issued a report recommending steps mobile device manufacturers can take to enhance security for users.

Nyarugusu on the border of Tanzania and Burundi, one of the largest refugee camps in the world, is an unlikely pioneer in how the telecoms industry views refugees. Established in 1996, it has population of 150,000. Vodacom, Vodafone’s African arm, installed a 3G tower within Nyarugusu in 2016, which it now shares with commercial rivals Tigo and Airtel. The tower is running at full capacity, according to the GSMA, the mobile industry trade body, but more striking is the average revenue per user of $4.40. That is slightly higher than the average revenue per user for the rest of Tanzania. Refugees are spending about a third of their disposable income on connectivity. Chris Earney, head of innovation at the United Nations refugee agency UNHCR, says that Vodacom had initially built one tower to test the demand and this quickly proved the business case. He says that some telecoms companies are starting to realise that refugee communities represent “large untapped markets”.
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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