Tech Industry Lobbying Rose in Q2 Amid Internet Governance, Cyber, Privacy Debates
Internet and tech companies’ lobbying spending continued to rise in Q2, according to lobbying disclosure filings. Lobbying on cybersecurity, Internet governance and privacy issues remained at elevated levels amid continuing debates over legislation on those issues and the Internet Assigned Numbers Authority (IANA) transition. Google again led Internet companies in federal lobbying spending during Q2, though its total expenditures for the quarter fell year-over-year, while Amazon and Facebook’s spending rose. Industry groups generally reported decreased lobbying expenditures, with video groups reporting lower numbers following reauthorization of the Satellite Television Extension and Localism Act (see 1507200066).
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Google reported $4.62 million in lobbying spending for Q2, down from $5.03 million in the same period last year and from $5.1 million in Q1. Outside firms reported a total of $977,500 in lobbying income on the company’s behalf. Facebook reported $2.69 million in spending for Q2, up from $2.12 million during that period last year. Amazon reported $2.15 million in spending for Q2, up from $1.06 million last year. Other major industry spenders for the quarter included Microsoft, which spent $2.24 million on lobbying, and Apple, which spent $1.23 million. Yahoo said it spent $730,000, while eBay spent $358,000. Pandora said it spent $380,000, while Netflix said it spent $330,000. Outside firms reported $250,000 in lobbying money from Spotify, while the Paul Laxalt Group reported $50,000 from Sirius.
Industry groups generally continued to maintain or decrease lobbying spending during Q2, though the Software and Information Industry Association reported it spent $350,000 on lobbying during that period, up from $280,000 a year ago. The Computer & Communications Industry Association (CCIA) reported it spent $27,000 on lobbying during that period, while RedFive Strategies reported $50,000 in lobbying money from the group. CCIA said it spent $160,000 during Q2 2014. The Internet Association reported $360,000 in spending, while outside firms reported less than $45,000 in income from lobbying on the group’s behalf. NetChoice reported $88,000 in spending, while Morgan Lewis reported $51,000 from the group. Outside firms reported more than $220,000 in lobbying spending from the American Society of Composers, Authors and Publishers, including a substantial increase for Thorn Run Partners.
Internet governance issues were a lobbying focus for a larger number of stakeholders during Q2 than during Q1, though the number was consistent with the number that lobbied on the issue during the same period last year. At least 24 companies and groups lobbied on Internet governance during Q2, compared with 19 entities during Q1. Twenty-three entities lobbied on Internet governance issues during Q2 2014. ICANN increased lobbying spending in Q2 to $200,000, up from $145,000 last year. Outside firms reported $190,000 in lobbying outlays from ICANN. Other major entities lobbying on Internet governance during Q2 included Amazon, Google, Verizon and Yahoo. The main driver of Internet governance lobbying for the quarter was the IANA transition and more specifically the Domain Openness Through Continued Oversight Matters (DOTCOM) Act (HR-805/S-1551), with 15 entities specifically citing lobbying efforts related to that bill.
The increased interest in Internet governance isn’t surprising given that ICANN stakeholders reported progress during Q2 on planning for the IANA transition, an industry lobbyist noted. Lobbying on the DOTCOM Act was amplified in Q2 as Congress moved closer to a compromise on the bill’s language, resulting in House passage of HR-805 in June, the lobbyist said. S-1551 also advanced out of the Senate Commerce Committee, though it's now in limbo due to a hold by Sen. Ted Cruz, R-Texas (see 1507200068). Continued debate on S-1551, along with announcements from ICANN and NTIA that the IANA transition won’t be completed until at least July 2016, mean lobbying on Internet governance will continue to remain steady or increase in the coming months, said Phil Corwin, principal of e-commerce and IP law consultancy Virtualaw. “As long as the IANA transition’s in play and ICANN accountability mechanisms are still an issue, those that have engaged will continue to engage,” he said. “Why would they walk away from it at this point?”
Cybersecurity legislation also continued to receive attention from a wide range of entities during Q2, during which the House passed two cyber information sharing bills -- the Protecting Cyber Networks Act (HR-1560) and the National Cybersecurity Protection Advancement Act (HR-1731). The House later advanced language from both bills into a revised version of HR-1560 (see 1504300065), though the Senate hasn’t acted on either that bill or the Cybersecurity Information Sharing Act (S-754). Entities lobbying on S-754 and the House cybersecurity bills were more evenly divided between supporters and opponents of the legislation due to efforts by groups like the American Civil Liberties Union to push for more privacy protections in the bills. Other entities lobbying on cybersecurity legislation included Apple, AT&T, Intel, the Internet Association and Microsoft.
Tech companies showed a strong interest in influencing various privacy bills in Q2, including the enacted USA Freedom Act (HR-2048/S-1123) and the Electronic Communications Privacy Act Amendments Act (S-356). Other bills of interest included the Online Communications and Geolocation Protection Act (HR-656), the Email Privacy Act (HR-699) and the Law Enforcement Access to Data Stored Abroad Act (HR-512). The Senate’s Data Security and Breach Notification Act (S-177) also caught the attention of many entities, including the 21st Century Privacy Coalition, Amazon, the Business Software Alliance, CEA, Cisco, CTIA, Google, the Internet Association, Facebook, Public Knowledge, SIIA, Twitter and Yahoo, the lobbying reports said. Many of the same companies lobbied on other data security issues as well.
Companies lobbied on issues of encryption and security, privacy for advertising and e-commerce, mobile applications and privacy and data security and data breaches. Google, Facebook and other major tech companies are attempting to influence privacy legislation, said Consumer Watchdog Privacy Project Director John Simpson. Some companies would like to pass good, solid privacy legislation that contains sensible rules, though several firms are trying to ensure government regulation is kept to a minimum and say too many rules will stifle innovation, he said.
Facial recognition received attention from a smaller number of entities: the Direct Marketing Association, Microsoft, NetChoice, and Yahoo. Issues on unmanned aerial vehicles piqued the lobbying interests of the ACLU, Amazon, Fox, Google, GoPro, Intel, NAB and NCTA. The National Women’s Law Center reported fielding questions from Rep. Jackie Speier’s, D-Calif., office on whether they would support Speier’s yet-to-be-released Intimate Privacy Protection Act. Few companies lobbied on the right to be forgotten. Simpson told us that he hopes to see more activity on that issue in Q3, as that would a signal it's gotten the attention of tech companies.