House Commerce Committee Republicans on Monday requested a classified State Department briefing on TikTok, days after President Donald Trump threatened to ban the Chinese social media platform from the U.S. Microsoft is continuing talks to buy TikTok, after CEO Satya Nadella discussed it with Trump, it said Sunday: “Microsoft fully appreciates the importance of addressing the President’s concerns." It's committed to acquiring TikTok "subject to" a complete review, it said. House Commerce Committee ranking member Greg Walden, Ore.; House Minority Whip Steve Scalise, La.; and House Consumer Protection Subcommittee ranking member Cathy McMorris Rodgers, Wash., raised concerns about the video app and alleged ties to a Chinese company doing secret face recognition and data harvesting. Walden and Rodgers cited previous complaints about TikTok on children’s privacy, corporate governance and COVID-19. Banning TikTok would threaten U.S. jobs and the livelihood of American content creators reliant on the app, Information Technology and Innovation Foundation Vice President Daniel Castro said: “In a week where many policymakers have called for more competition in the tech sector, undermining one of the fastest-growing social media platforms would be a step in the wrong direction.” ACT|The App Association said it's encouraged by ongoing negotiations for Microsoft to buy TikTok: “While this is an ongoing negotiation with no guaranteed outcome, we strongly urge policymakers to avoid a government intervention in banning TikTok that could result in an unprecedented geofencing of access to an online service used by 50 million Americans a day and create significant disruption to the app economy.” The State Department didn’t comment. The Microsoft blog suggests Trump “at least tentatively blessed the deal,” said Cowen analyst Paul Gallant. The deal could strengthen Facebook’s argument against antitrust scrutiny, and it might invite more attention on Microsoft from policymakers in Washington, he said.
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
The House Antitrust Subcommittee’s hearing with Big Tech CEOs showed a glaring partisan divide, so it’s unlikely the Judiciary Committee will deliver a bipartisan report, antitrust attorneys told us. Public Knowledge is more hopeful: Policy Counsel Alex Petros said both parties delivered well-researched claims against the industry at the hearing (see 2007290063). Attorneys said the evidence focused more on harm to competitors, rather than consumers, which doesn’t make a strong case.
House Antitrust Subcommittee Democrats presented evidence Wednesday of anticompetitive behavior by Amazon, Apple, Facebook and Google, during a hearing with their CEOs. Republicans hammered executives with claims of anti-conservative bias. All four executives appeared virtually.
Legislators so far are reacting along party lines to NTIA’s petition (see 2007270070) that the FCC help crack down on social media. Even GOP lawmakers who were somewhat supportive cautioned regulators not to run afoul of the First Amendment.
Face recognition algorithm accuracy declines substantially with masked faces, the National Institute of Standards and Technology reported Monday. For the most accurate algorithms tested, authentication failure rates increased from 0.3% for unmasked individuals to 5% when scanning digitally masked faces, NIST said.
There's no grace period for companies to continue transferring data from Europe to the U.S. without assessing its legal basis, the European Data Protection Board said in FAQs published Friday. Some stakeholders were hoping for a grace period after the European Court of Justice invalidated Privacy Shield (see 2007160002).
The FTC received at least two complaints through July 13 in response to President Donald Trump’s May 28 social media executive order (see 2007100052). The filings, which we obtained through a Freedom of Information Act request, allege “deception/misrepresentation” by Facebook and Twitter.
The Senate Homeland Security Committee advanced two bills by voice vote Wednesday targeting tech threats from China. One seeks to address Chinese theft of American research and intellectual property, and the other would ban federal employees from using the social media app TikTok on government-issued devices.
Amazon began additional checks for certifying Alexa’s voice-control capabilities, or skills, a spokesperson said in a statement Tuesday. In a presentation before the FTC that day, Clemson University Graduate Research Assistant Christin Wilson described Alexa’s certification process as “improper and disorganized." The agency held PrivacyCon, a conference with researchers meant to help identify consumer risks and better target enforcement efforts, Consumer Protection Bureau Director Andrew Smith said.
The technology modernization fund (TMF) is grossly underfunded and a contributing factor to government’s ill-equipped information technology systems, said House Government Operations Subcommittee Chairman Gerry Connolly, D-Va., and witnesses at a hearing Monday. Response to COVID-19 exposed federal and state government weaknesses, especially with legacy IT systems that are sometimes 30-40 years old, Connolly said, hosting a hybrid virtual and in-person hearing. IT systems have been inadequate in processing the Small Business Administration’s small business loans and grants and the Internal Revenue Service’s payment of stimulus checks, he added. The TMF “remains chronically underfunded,” Connolly said. Ranking member Jody Hice, R-Ga., urged focus on improving the TMF to help the government replace legacy systems, saying the U.S. needs to get more agile and up to date. Draft legislation for the TMF sought $3 billion annually, but it was never funded at more than $25 million, and most years there’s been zero funding, testified MeriTalk founder Steve O’Keeffe. The Alliance for Digital Innovation supports a significant increase to the TMF, said Executive Director Matthew Cornelius. Every federal agency should have a top technology official who can inject that experience into policies, testified New America Director of Strategy-Public Interest Technology Hana Schank. Congress should adopt policies that enable easier use of commercial products and services, that provide security, agility and scalability that supports the demand for digital services and data, said Information Technology Industry Council Senior Vice President-Policy Gordon Bitko.