Ownership

Senator Edward J. Markey (D-MA) called on Federal Communications Commission Chairman Ajit Pai to reject any efforts by President Donald Trump or his administration to infringe on the First Amendment or undermine the independence of the FCC. On Oct 11, President Trump tweeted, “[w]ith all of the Fake News coming out of NBC and the Networks, at what point is it appropriate to challenge their License? Bad for country!” In his letter, Sen Markey asks Chairman Pai to provide any correspondence or communications from the White House or other members of the Trump administration that have encouraged the FCC to take action against a broadcaster.

[Commentary] Are social media platforms like Twitter subject to the First Amendment? Is there a right to free speech on social media owned by private corporations? The Knight First Amendment Institute thinks so. In July, the institute sued the president, his director of social media, and his press secretary to unblock the blocked. By banning these users based on views they expressed about tweets by the president, the Institute argues, Trump violated the users’ right to free speech because the blocks were based on disagreement with the users’ messages. Two weeks ago, as part of this litigation, lawyers for the president acknowledged that he personally blocked the Twitter users “because the Individual Plaintiffs posted tweets that criticized the president or his policies”—what free speech law calls “viewpoint discrimination.” In places where the First Amendment applies—such as public forums—it bars the government or its officials from such bias....

As it stands, the country’s libertarian conception of free speech is allowing, and even ferociously feeding, an erosion of the democracy it is supposed to be essential in making work—and some government regulation of speech on social media may be required to save it.

[Lincoln Caplan is the Truman Capote Visiting Lecturer in Law at Yale Law School ]

[Commentary] The tech giants are too big. Other than President Donald J. Trump, that’s the defining story of 2017, the meta-narrative lurking beneath every other headline. The companies I call the Frightful Five — Amazon, Apple, Facebook, Microsoft and Alphabet, Google’s parent company — have experienced astounding growth over the last few years, making them the world’s five most valuable public companies. Because they own the technology that will dominate much of life for the foreseeable future, they are also gaining vast social and political power over much of the world beyond tech.

Now that world is scrambling to figure out what to do about them. And it is discovering that the changes they are unleashing — in the economy, in civic and political life, in arts and entertainment, and in our tech-addled psyches — are not simple to comprehend, let alone to limit. This is the first of several columns in which I’ll take measure of the Five. Here, I assess their efforts to infiltrate entertainment — their plans to push deeper into the business of movies, TV and music, and the fears of cultural domination those moves have provoked.

The US Supreme Court asked the Trump administration for its views on whether to hear Apple’s bid to avoid a class-action lawsuit accusing the tech giant of inflating consumer prices by charging illegally high commissions on iPhone software sales through its App Store. The justices are considering whether to take up Apple’s appeal of a lower court ruling that allowed the proposed class-action suit alleging it violated federal antitrust law to proceed. Apple said the case should be thrown out because only developers of the apps who were charged the commissions, not consumers, should be entitled to bring such a suit.

Apple charges app developers a 30 percent commission on App Store consumer purchases. The Justice Department will provide the high court with its stance on the matter. The dispute could have a major impact on electronic commerce, which has seen explosive growth, with $390 billion in US retail sales in 2016.

CenturyLink is making a final push to get the Federal Communications Commission to approve its pending acquisition of Level 3 Communications, with hopes of closing it in October 2017. The FCC is the only regulator that has yet to sign off on the purchase. To date, CenturyLink and Level 3’s proposed merger has gotten approvals from 19 states. It has also gained pre-closing notice filings in 14 other states. At this point, CenturyLink and Level only need the final sign off from the California Public Utilities Commission, which is expected to approve the acquisition during a meeting in Oct.

X is the so-called moonshot factory at Alphabet, the parent company of Google. The purpose of X is not to solve Google’s problems; thousands of people are already doing that. Nor is its mission philanthropic. Instead X exists, ultimately, to create world-changing companies that could eventually become the next Google.

The enterprise considers more than 100 ideas each year, in areas ranging from clean energy to artificial intelligence. But only a tiny percentage become “projects,” with full-time staff working on them. It’s too soon to know whether many (or any) of these shots will reach the moon: X was formed in 2010, and its projects take years; critics note a shortage of revenue to date. But several projects—most notably Waymo, its self-driving-car company, recently valued at $70 billion by one Wall Street firm—look like they may.

President Donald Trump threatened the NFL with trying to eliminate a long-standing tax break over the issue of players kneeling during the National Anthem. Vice President Mike Pence left a Colts/49ers game early on Oct 8 after some players took a knee. The President said later he had instructed the Vice President to do so. The NFL threat came in a tweet Oct 10, one of two related to television and sports (the other slammed ESPN for low ratings). "Why is the NFL getting massive tax breaks while at the same time disrespecting our Anthem, Flag and Country? Change tax law!" the President tweeted.

Britain is looking at the role of Google and Facebook in the provision of news and what their wider responsibilities and legal status should be, said a spokesman for Prime Minister Theresa May. As more people get their news through Google and Facebook, some in the industry say the internet giants are publishers and not just platforms, meaning they should be held responsible for the content and regulated like traditional news providers.

“We are looking at the role Google and Facebook play in the news environment,” the spokesman told reporters, saying the work was part of a commitment to produce a digital charter setting out how firms and individuals should behave online. “As part of that work we will look carefully at the roles, responsibility and legal status of the major internet platforms.”

[Commentary] Cable is no longer the “bottleneck” that Congress once assumed it was for delivering video into American homes. This calls into question the continuing value of must-carry, retransmission consent and other regimes based on this premise.

As a mature-to-declining product, cable must cut costs to remain viable against new competitors. This dynamic explains the recent rise in merger activity among cable operators. Building economies of scale can strengthen regional cable operators’ negotiations with programmers and can help them compete more effectively against Netflix and other alternatives, which are national in scope. It is important that antitrust regulators recognize cable as only one part of a larger market for video services — and allow them to compete accordingly.

[Daniel Lyons is an associate professor at Boston College Law School]

Amazon is making a serious effort to break into the digital advertising business, an arena dominated by its fellow behemoth competitors, Google and Facebook. The company is opening a new office in New York City, which it says will bring more than 2,000 jobs. The new space will also bring it closer to New York’s advertising agencies. Media agency executives have already said that they have been increasingly contacted by Amazon representatives trying to sell them and their clients ad space. Amazon has already begun to beef up its ad sales team and enhance its programmatic advertising business.