The FCC could potentially use merger conditions as a replacement for regulations the courts knocked down after the overturning of Chevron deference, said Jeffrey Westling, American Action Forum director-technology and innovation policy. In a blog post Wednesday, he wrote, “If the agency fails to defend its signature rules in court, it could follow the lead of the Biden Administration’s FTC and DOJ and use merger review as a venue for regulation through condition setting.” Westling pointed to device unlocking rules as an example: the agency is considering requiring broadband providers to unlock devices within a certain time frame, but some providers -- including T-Mobile -- are already subject to such requirements because of merger conditions. These conditions let the agency “go around existing rulemaking procedures,” are often negotiated in haste, and aren’t subject to judicial review, Westling said. The agency is reviewing a number of large telecom deals, including DirecTV/Dish, Verizon/Frontier and T-Mobile/USCellular, Westling noted. “How the FCC reviews these transactions can give additional insight into how the agency may approach its merger review process after the overturning of the Chevron doctrine.” If the agency begins using conditions to block acquisitions, then Congress should act to reign in the agency, or even take away the FCC’s merger review authority. Though transactions would still be subject to FTC or DOJ review, those agencies lack the FCC's expansive authority to impose conditions that aren’t related to competition, Westling said.

The FTC "click-to-cancel" rule and California's automatic renewal law amendments give the FTC and private plaintiffs new leverage in challenging advertising claims for any company selling products on an auto-renewal or continuous service basis, say Venable lawyers. Shahin Rothermel, Ari Rothman and Claudia Lewis blogged Tuesday that the additional leverage has "potentially business-ending implications" as the two provide new rights of action where companies could face millions of dollars in liability for allegedly false or misleading claims about products or services. However, multiple challenges of the FTC rule (see 2410240001) could delay its implementation date of 180 days after publication in the Federal Register, they said.

The FCC is eyeing undertaking its first major comprehensive review of its submarine cable rules in 23 years, Chairwoman Jessica Rosenworcel noted Wednesday as she announced the agency's Nov. 21 meeting agenda. Also on the agenda are additional robocall steps and a permanent process for authorizing geotargeted FM radio broadcasts, she said. While the technology, economics and security challenges involving submarine cables have changed notably since 2001, "FCC oversight has not," she said. That year saw the agency adopt procedures for streamlining the processing of landing licenses. The Stir/Shaken caller ID authentication framework is one of the FCC's most effective tools for mitigating deceptive robocalls, Rosenworcel said. With third parties used for Stir/Shaken implementation, Rosenworcel noted there have been "concerns about improperly authenticated calls and diminished accountability." The FCC will "vote to establish clear rules of the road for the use of third parties in the caller ID authentication process," she said. Industry groups urged the commission to allow third-party caller ID authentication last year (see 2307060045). In April, the FCC unanimously approved an order creating a temporary authorization process for broadcasters to use FM boosters to offer geotargeted ads. Along with that order, the agency sought comment on a more permanent process, which seems the focus of the November order. Geobroadcast Solutions, the primary company offering geotargeted FM tech to broadcasters, has pushed for the permanent authorization process to loosen restrictions on broadcasters offering geotargeting. GBS has called for the FCC to raise the number of commonly owned booster stations allowed to originate content and to increase the amount of time per hour the geotargeted content can be broadcast. The current limit is three minutes per hour. NAB and NPR have called for the FCC to closely monitor geotargeted radio users and impose additional interference protections. Two entities, Press Communications and REC Networks, have petitioned the agency to reconsider the original radio geotargeting order. The November agenda also has an unspecified enforcement item scheduled.

The FCC will coordinate with the California Privacy Protection Agency (CPPA) on privacy efforts, the federal agency said Tuesday. The FCC’s privacy and data protection task force signed a memorandum of understanding with the CPPA, which is charged with rulemaking and enforcement related to California privacy laws, including the California Consumer Privacy Act. Under the pact, the two agencies will “share close and common legal interests in working cooperatively to investigate and, where appropriate, prosecute or otherwise take enforcement action in relation to privacy, data protection, or cybersecurity issues.” FCC Chairwoman Jessica Rosenworcel said, “Coordinated state and federal partnerships like this are essential to our privacy work.” CPPA Executive Director Ashkan Soltani said the partnership will “help increase trust and security in the digital marketplace.” CPPA Enforcement Head Michael Macko added, “collaboration is key to vigorous enforcement.” Also Tuesday, the CPPA released an agenda for its Nov. 8 board meeting. The agency may vote to advance draft rules, including on automated decision-making technology, risk assessments, and cybersecurity audits, to a formal rulemaking, it said. The board also has plans for considering possible changes to data broker registration requirements.

A day following a major Frontier Communications shareholder voicing opposition to Verizon's bid for the company (see 2410230054), Frontier is trying to convince others of the merits of the $20 billion offer. The Verizon offer exceeded most analysts' price targets for Frontier prior to the deal, Frontier said Friday in a shareholder presentation filed with the SEC. The Frontier board unanimously concluded the Verizon deal is in the best interest of shareholders, it said.

Wording in the FCC's broadband data caps notice of inquiry (see 2410150069) makes it "pretty clear the agency is really itching to ban data caps and, in turn, to regulate usage-based pricing," International Center for Law & Economics Senior Scholar Eric Fruits blogged Wednesday. Rather than ban or significantly restrict data caps and usage-based pricing, the agency should prioritize a regulatory approach "that encourages innovation and investment, while safeguarding consumer interests," Fruits wrote. That approach would optimally use existing antitrust and consumer protection rules to foster pricing transparency, he argued.

AT&T has no plans for FirstNet to use the 4.9 GHz band quickly because significant infrastructure work on the nationwide public safety broadband network is needed first, AT&T CEO John Starkey said Wednesday as the company announced Q3 results. The FCC on Tuesday approved FirstNet use of the band (see 2410220027). Starkey said AT&T is starting to see pay off from repositioning its business wireline operations to focus on connectivity; however, success is not happening quickly enough to fully offset revenue decline in the legacy business wireline voice and data units. Q3 revenue was $30.2 billion, off slightly from $30.4 billion in Q3 2023, in part due to business wireline service revenue declining. Chief Financial Officer Pascal Desroches said the company is "encouraged" by early results of its Internet Air fixed wireless broadband service that launched in August, as it finished Q3 with close to 500,00 Air subscribers. He said AT&T added 135,000 Air subscribers in the quarter. The quarter ended with 9 million fiber subscribers, up from 8 million in Q3 2023, and 72.3 million postpaid phone subscribers, up from 70.8 million year over year. Desroches said AT&T's fiber network passes more than 28 million homes and businesses. It hopes to top 30 million by the end of next year. In a call with analysts, Starkey said it was "entirely possible" AT&T would, at some point, use its fiber network to be an open access provider.

The FCC deactivated the disaster information reporting system and mandatory disaster response initiative for Hurricane Helene Saturday, said a public notice in Monday’s Daily Digest. Reporting for Hurricane Milton was deactivated last week (see 2410150075).

The FCC’s Disability Advisory Committee met for the last time Friday under its current charter, approving reports from its three working groups (WGs), none of which was immediately available. The next DAC is slated for December, FCC officials said. A report from the WG on Best Practices for Quality Telecom Relay Service for Individuals with Multiple Disabilities emphasized that “functional equivalence does not mean the same thing to two people,” said co-Chair Cristina Duarte, InnoCaption director-regulatory affairs. “It is highly unique and what one person needs for accessibility in telecommunications is not necessarily what another person needs.” The report underlined the importance of offering flexible features, which can work with other app-based solutions. It also noted the need for education and outreach about services that are available and the importance of security, Duarte added. Another report, from the WG on the Use of AI to Caption Live Video Programming, examines the state of automatic speech recognition (ASR) and potential use of evolving technologies, said co-Chair Shadi Abou-Zahra, Amazon principal accessibility standards and policy manager. It considers cloud-based and on-premises ASR, examining “the pros and cons” of ASR based on the principles of accuracy, synchronicity, program completeness and placement, he added. A third report reviews online gaming accessibility for people who are blind or have low vision. FCC Chairwoman Jessica Rosenworcel told the DAC an order that commissioners approved Thursday mandating 100% hearing-aid compatibility for phones sold in the U.S. (see 2410170030) is “a big deal” and “historic.” The HAC order “means that in the not too distant future hearing aid users will be able to consider any handset model for purchase rather than just a limited number of phones.” Rosenworcel noted she has backed the mandate for nearly 10 years. Change takes longer than the two-year term of any DAC, she said: It requires "a special level of patience and special kind of perseverance.” Technological innovation, said FCC Commissioner Anna Gomez, potentially can “close the digital divide ... implement creative spectrum solutions ... improve public safety systems and ... foster a vibrant media ecosystem.” Everyone must feel these benefits, "including the disability community.” Gomez stressed the importance of “accessibility by design” for communications products and noted the HAC order. “This is a big deal, and it’s a crucial way that the FCC acted to make communications services accessible to all.” DAC last met in May (see 2405160051).

The FCC and a coalition of industry and consumer groups urged the U.S. Supreme Court to grant their pending petitions for a writ of certiorari regarding the 5th U.S. Circuit Court of Appeals' ruling in Consumers' Research's challenge of the Universal Service Fund contribution mechanism (No. 24-354). The FCC, in a reply brief Thursday, said the two pending petitions are "better vehicles for clarifying the law in this sphere" than Consumers' Research's petition of the 6th and 11th circuits' rulings (see 2410010024). The 5th Circuit addressed whether Congress delegated legislative power to the FCC, whether the agency delegated governmental power to a private entity, and whether the combination of the two violates the Constitution. The 6th and 11th circuits "did not specifically discuss whether the combination of the two alleged delegations violates the Constitution, and the petitions seeking review of those circuits’ decisions do not raise that question," the FCC said. The 5th Circuit is the only court to have found a nondelegation violation, the commission noted. "Granting certiorari in this case would allow the Court to directly review the 5th Circuit's reasoning," the FCC said. The agency also noted that SCOTUS has already denied petitions seeking review of the 6th and 11th Circuit decisions. Consumers' Research said in a reply brief to the coalition petition that there wasn't a reason to grant it "as their interests are adequately represented by the government" (No. 24-422). NTCA, the Competitive Carriers Association, USTelecom, the Benton Institute for Broadband & Society, the National Digital Inclusion Alliance, and Media Justice petitioned SCOTUS to review the 5th Circuit ruling. Consumers' Research noted the coalition didn't seek to intervene in subsequent challenges it filed since that ruling, "apparently confirming their interests are adequately represented by the government."