FTC Chairman Simons Seeks to Double Size of Tech Task Force
FTC Chairman Joe Simons wants to double the size of his agency’s tech task force (see 1902280077), supplement privacy and enforcement efforts, and hire more technologists and economists, he told the House Financial Services and General Government Subcommittee Wednesday. The House’s FY 2020 budget bill includes $349.7 million for the FTC (see 1906260081 and 1906240061), up about $40 million from what Congress allocated in the FY 2019 spending bill passed in February. More than half of the additional $40 million might be needed to cover mandatory compensation increases and other agency operations, Simons said. The rest could fund the priorities he listed. Simons and Chopra didn't take questions after the hearing.
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DOJ’s intervention in the FTC’s antitrust case against Qualcomm (see 1907190012) in support of the company was “highly unusual,” Simons told appropriators. The department’s involvement is “very mysterious,” Democratic Commissioner Rohit Chopra added: It raises concern about the administration’s commitment to antitrust enforcement.
Simons and Chopra discussed overlapping enforcement with DOJ. Given a clearance agreement between the two, the general approach is to avoid duplicative investigations, Simons said. They welcomed investigatory action from state attorneys general, as state enforcers often partner with the FTC on probes. It helps leverage resources for consumer protection and competition, Simons said. It’s “all hands on deck,” Chopra said, noting the agency is in constant contact with state AGs. Chopra also welcomed investigations from Congress, saying it helps inform the public about industry practices.
Chopra offered his reasoning for dissenting in the agency’s recent $5 billion Facebook settlement. It offers blanket releases from liability for other violations, he said, and although the fine is a record amount, it won’t change how the company operates. It doesn’t fix the platform’s “core problems,” he said, citing recent news about the suspension of tens of thousands of third-party apps (see 1909200057).
The settlement is a much better result than what the agency could have litigated in court, Simons said, repeating arguments from when the deal was announced. Chopra called the platform a major regulatory challenge with “serious dysfunction.”
Simons again urged Congress to enact privacy legislation granting the FTC rulemaking authority, civil penalty authority for first offenses and jurisdiction over nonprofits and common carriers. Lifting the common carrier exemption would allow the agency to address issues related to location data sharing and robocalls.
Chopra praised aspects of the California Consumer Privacy Act. For one, it offers very clear penalties for companies that willfully abuse data privacy, he said. That helps incentivize the industry to better protect data. He also listed some concerns: a “worrisome decline in new business formation,” data protection, and the rising dominance of big tech regarding “fake reviews, facial recognition and fair competition.”