The election of Donald Trump likely means that several of the big items approved under Chairman Tom Wheeler on 3-2 votes will be reversed by the next commission. Wheeler could withdraw a few remaining items, especially rules on business data services (BDS) and set-top boxes, FCC and industry officials said. If Wheeler pushes them through, the Trump commission could reject them on reconsideration, the officials said. The 2015 decision to reclassify broadband under Title II of the Communications Act and the recent ISP privacy rules are likely targets for reversal, one analyst said. The agency declined to comment.
The Justice Department's Antitrust Division pushed the Federal Maritime Commission to block the recently approved OCEAN Alliance (see 1610240016) in comments submitted to the agency on the proposed agreement prior to approval (here). "Applying well-accepted antitrust principles, the proposed alliance consolidation raises serious competitive concerns," the DOJ said. "The collaboration proposed here contemplates such close cooperation among its members that competition among them will be largely eliminated." The alliance includes COSCO Shipping, CMA CGM, Evergreen Marine, and Orient Overseas Container Line Limited.
The FCC has overcompensated the largest video relay service (VRS) provider by about $1 billion since 2008, says a former commission investigator who wrote a 2010 internal report that was disputed and shelved. Sorenson Communications collected upward of $500 million more than it would have from 2008 to 2010 if the FCC had adopted staff proposals in 2007 to enforce its own compensation standard establishing allowable costs and profits, according to the report, provided us by Stanley Scheiner, who authored it for the Office of Inspector General. Although the FCC has cut rates closer to costs since then, Sorenson collected another $500 million in estimated excess profit from 2010 to 2016, Scheiner told us.
Facebook, which is fighting a class-action lawsuit that claims it violated the Telephone Consumer Protection Act by sending unsolicited text messages to cellphone users, last week restated its argument that the 1991 statute violates the social networking company's First Amendment right to send status update messages. Its claim TCPA is unconstitutional was in response to a U.S. government filing last month in the case asking the U.S. District Court for the Northern District of California to reject that argument. Several experts we interviewed agreed Facebook may have an uphill fight.
Facebook, which is fighting a class-action lawsuit that claims it violated the Telephone Consumer Protection Act by sending unsolicited text messages to cellphone users, last week restated its argument that the 1991 statute violates the social networking company's First Amendment right to send status update messages. Its claim TCPA is unconstitutional was in response to a U.S. government filing last month in the case asking the U.S. District Court for the Northern District of California to reject that argument. Several experts we interviewed agreed Facebook may have an uphill fight.
Sen. Ron Wyden, D-Ore., warned AT&T and Time Warner about data caps and zero-rating plans in a letter to FCC Chairman Tom Wheeler about the AT&T's planned buy of TW. The deal “could dramatically increase the use of data caps and zero-rated content, two anticompetitive practices that harm consumers,” Wyden told Wheeler in a letter dated Tuesday. Data caps have “everything to do with profiting from an ever-more-consolidated broadband market” and those that zero-rate data at ISP discretion “violate the principle of net neutrality,” Wyden said. “I am deeply concerned that if AT&T acquires Time Warner’s content, the new mega-company will have incentives to prioritize its own content over content created by small business, independent artists or by its rivals.” He said he's prepared with legislation if necessary, citing his 2012 measure called the Data Cap Integrity Act: “Over the coming months, I will continue to keep an eye on data caps and zero-rating, with the full intention of zealously pursuing legislation like the Data Cap Integrity Act, should it be required.” Zero rating is seen as a key issue in reviewing AT&T/TW (see 1611020034). An AT&T spokesman pointed to statements from Senior Executive Vice President Bob Quinn when asked about Wyden's letter. Quinn said sponsored data "is an incredibly popular service that we hope regulators won't take away from the tens of millions of people who enjoy it today from several different companies" and the FCC "has been monitoring current sponsored data offerings on an industry-wide basis, and because those offerings benefit consumers, we don't expect the FCC to act rashly in this area." He defended AT&T's current offerings: "Through sponsored data, consumers can watch DirecTV content on their AT&T mobile devices without worrying about data changes. We welcome any video provider that wishes to sponsor its content in the same way and on equal terms. In September, we began offering our DIRECTV Everywhere app, which provides a customer access to all of their authorized television stations using sponsored data, including competitors to CNN. There is no discrimination there and we have repeatedly stated that we will offer the same deal on sponsored data to everybody who wants it." Mobile Future Executive Director Allison Remsen also defended the use of such data plans, in response to Wyden's letter: “New data options and business models reflect a dynamic marketplace that has companies constantly looking for new ways to differentiate themselves and compete," she said. "Consumers clearly believe free is good and are flocking to free data options -- it’s a win/win for wireless subscribers.”
Sen. Ron Wyden, D-Ore., warned AT&T and Time Warner about data caps and zero-rating plans in a letter to FCC Chairman Tom Wheeler about the AT&T's planned buy of TW. The deal “could dramatically increase the use of data caps and zero-rated content, two anticompetitive practices that harm consumers,” Wyden told Wheeler in a letter dated Tuesday. Data caps have “everything to do with profiting from an ever-more-consolidated broadband market” and those that zero-rate data at ISP discretion “violate the principle of net neutrality,” Wyden said. “I am deeply concerned that if AT&T acquires Time Warner’s content, the new mega-company will have incentives to prioritize its own content over content created by small business, independent artists or by its rivals.” He said he's prepared with legislation if necessary, citing his 2012 measure called the Data Cap Integrity Act: “Over the coming months, I will continue to keep an eye on data caps and zero-rating, with the full intention of zealously pursuing legislation like the Data Cap Integrity Act, should it be required.” Zero rating is seen as a key issue in reviewing AT&T/TW (see 1611020034). An AT&T spokesman pointed to statements from Senior Executive Vice President Bob Quinn when asked about Wyden's letter. Quinn said sponsored data "is an incredibly popular service that we hope regulators won't take away from the tens of millions of people who enjoy it today from several different companies" and the FCC "has been monitoring current sponsored data offerings on an industry-wide basis, and because those offerings benefit consumers, we don't expect the FCC to act rashly in this area." He defended AT&T's current offerings: "Through sponsored data, consumers can watch DirecTV content on their AT&T mobile devices without worrying about data changes. We welcome any video provider that wishes to sponsor its content in the same way and on equal terms. In September, we began offering our DIRECTV Everywhere app, which provides a customer access to all of their authorized television stations using sponsored data, including competitors to CNN. There is no discrimination there and we have repeatedly stated that we will offer the same deal on sponsored data to everybody who wants it." Mobile Future Executive Director Allison Remsen also defended the use of such data plans, in response to Wyden's letter: “New data options and business models reflect a dynamic marketplace that has companies constantly looking for new ways to differentiate themselves and compete," she said. "Consumers clearly believe free is good and are flocking to free data options -- it’s a win/win for wireless subscribers.”
Recent dueling critiques of possible bias in copyright policymaking at the Library of Congress and Copyright Office appear aimed at influencing the conversation on the register of copyright’s decision-making role amid the search for a permanent replacement for ousted former Register Maria Pallante, lawyers and lobbyists said in interviews. Pallante resigned from the LOC last week, days after Librarian of Congress Carla Hayden removed her as register and reassigned her as LOC adviser for digital strategy. Associate Register of Copyrights Karyn Temple Claggett will be acting register until the LOC can select a permanent replacement (see 1610250062 and 1610210061). Stakeholders questioned the circumstances and how the move would affect the CO’s policy advisory role (see 1610240052).
Recent dueling critiques of possible bias in copyright policymaking at the Library of Congress and Copyright Office appear aimed at influencing the conversation on the register of copyright’s decision-making role amid the search for a permanent replacement for ousted former Register Maria Pallante, lawyers and lobbyists said in interviews. Pallante resigned from the LOC last week, days after Librarian of Congress Carla Hayden removed her as register and reassigned her as LOC adviser for digital strategy. Associate Register of Copyrights Karyn Temple Claggett will be acting register until the LOC can select a permanent replacement (see 1610250062 and 1610210061). Stakeholders questioned the circumstances and how the move would affect the CO’s policy advisory role (see 1610240052).
The FTC has a good shot at getting an en banc rehearing by the 9th U.S. Circuit Court of Appeals, said several experts. A three-judge panel in August threw out the commission's case against AT&T Mobility for inadequately informing customers of its data-throttling program (see 161014003 and 1608290032). Experts, some of whom filed amicus briefs backing the FTC, said the 9th Circuit has a track record of providing such rehearings, though they said it's murkier how the full court would decide.