After confirmation Thursday of five FTC commissioners, several issues are worth watching early in their tenures concerning privacy, competition and personnel (see 1804260041), stakeholders said the next day. Topping issues, according to industry attorneys and former officials: a determination of potential 2011 consent decree violations by Facebook (see 1804050058), handling continued antitrust complaints against Google, and retention of acting Competition Bureau Director Bruce Hoffman and acting General Counsel Alden Abbott. “It’s an important and interesting time for the FTC because they’ve been shorthanded so long, so it’s really good to see a full complement of commissioners,” said Bloom Strategic Counsel founder Seth Bloom. “These next few months are going to be important to see what they’re up to and what they take up as their priorities.”
Karl Herchenroeder
Karl Herchenroeder, Associate Editor, is a technology policy journalist for publications including Communications Daily. Born in Rockville, Maryland, he joined the Warren Communications News staff in 2018. He began his journalism career in 2012 at the Aspen Times in Aspen, Colorado, where he covered city government. After that, he covered the nuclear industry for ExchangeMonitor in Washington. You can follow Herchenroeder on Twitter: @karlherk
House Judiciary Committee Chairman Bob Goodlatte, R-Va., chastised Facebook, Google and Twitter for refusing to testify at a Thursday hearing on social media filtering (see 1804250072). Democratic members accused Republicans of considering social media issues only when it suits their interests. The committee debated perceived platform censorship against conservatives and Christians.
Facebook won't appear Thursday at the House Judiciary Committee’s hearing on social media filtering, despite an invitation from concerned committee lawmakers from both parties (see 1804200049). Rep. Darrell Issa, R-Calif., told us he wants to better understand how Twitter decided to block a political video from House Communications Chairman Marsha Blackburn, R-Tenn., this fall. He voiced concern that other networks are censoring users over political differences: “Facebook is a leftist organization -- Twitter, Google. These are all [Democrat]-founded and Democrat-leaning, and it doesn’t mean that they’re absolutely unfair by any means, but they clearly have a preference.”
Copyright and data privacy legislation will be major focuses for tech sector lobbying groups in coming months, and the software industry will push for passage of a government data transparency bill, industry representatives and lobbyists told us (see 1804200060 and 1804230061). Copyright stakeholders are preparing for consideration of at least three separate bills with tech implications. Expect legislators to explore baseline privacy legislation in the wake of the Cambridge Analytica privacy controversy, though it will be a significant undertaking, observers said.
As she prepares to leave office Friday, FTC Commissioner Terrell McSweeny told us she’s hoping for swift action on the five nominees awaiting Senate confirmation (see 1804170058). McSweeny, a former domestic policy adviser to Vice President Joe Biden who has repeatedly advocated for better consumer data portability (see 1802220042), continues to seek more data control.
Expect the Senate Judiciary Committee to pursue a package of music copyright legislation like the one House Judiciary recently advanced (see 1804110060), industry attorneys and lobbyists told us. Music Modernization Act (S-2334) author Sen. Orrin Hatch, R-Utah, told us he plans to discuss Senate Judiciary Committee consideration of the bill with Chairman Chuck Grassley, R-Iowa. Grassley “knows it’s important,” Hatch said.
The State Department is fighting to maintain the free flow of data and maximize monetary value of the internet, as new international privacy laws threaten the ease of cross-border data transfer, said Deputy Assistant Secretary-Cyber and International Communications and Information Policy Robert Strayer Thursday. At a Media Institute event, Strayer cited Vietnam’s new digital economy strategy as an area of concern. From the audience CTA CEO Gary Shapiro cited efforts in China to “blockade” American tech sector progress and Europe’s “cumbersome” general data protection regulation, which he said further hampers U.S. competitiveness.
Three nominees for the U.S. Postal Service Board of Governors expressed willingness Wednesday to defend negotiated service agreements with Amazon if they prove to be fruitful deals for the agency. President Donald Trump ordered a task force to analyze the USPS’ financial situation, which he says is worsened by Amazon deals (see 1804130059). During a confirmation hearing before the Senate Homeland Security and Governmental Affairs Committee, ranking member Claire McCaskill, D-Mo., expressed concern that presidential task forces often “tell presidents what they want to hear.” Those who have confronted Trump have been “shown the door” in a short period of time, she said. Nominees David Williams, Robert Duncan and Calvin Tucker agreed to, in McCaskill’s words, stand up to the president if the deals are beneficial. But McCaskill said negotiated service agreements with UPS and FedEx also need to be analyzed. “I don’t think we’re going back in terms of volume of packages in this country, and I am very concerned that we have enabled our competition to be more successful while we’ve hamstrung the Postal Service,” McCaskill said. Duncan said the facts will lead to the truth, and Tucker said he doesn’t necessarily anticipate a confrontation with Trump but is willing to challenge assumptions. “There’s no question [Trump’s] on a mission here. He’s got a thing about the man who owns Amazon,” McCaskill said, referring to Jeff Bezos. Chairman Ron Johnson, R-Wis., shared McCaskill’s “frustrations” about gathering contract data from the USPS and said he looks forward to the task force’s findings. Sen. Rand Paul, R-Ky., said Trump and McCaskill appear to be on the same side in this issue, but McCaskill said that unlike UPS and FedEx, Amazon isn't a USPS competitor but rather a customer. The question is whether the USPS is charging adequately, Paul said. There's a price where Amazon will deliver packages on its own, and the USPS needs to find the appropriate price, he added. Paul said he doesn't dislike Amazon but dislikes losing billions of dollars.
Senate Judiciary Committee members and Patent and Trademark Office Director Andrei Iancu expressed willingness Wednesday to explore legislative proposals on patent eligibility issues for artificial intelligence. Two Supreme Court decisions -- Alice Corp. v. CLS Bank International and Mayo v. Prometheus -- created “significant confusion” for applying traditional patent protections to AI algorithms, Iancu said during an oversight hearing. PTO can issue certain guidance and better clarity surrounding AI patent application, but “it’s not easy” since the office has those two cases for context. “If there is an interest in this committee or elsewhere, we would be very happy to work with you toward a solution,” Iancu said.
After reading briefs in South Dakota v. Wayfair, Justice Stephen Breyer concluded both sides are “absolutely right.” That came in Tuesday oral argument on whether to reverse a precedent shielding online retailers from state and local tax collection (see 1804160059).