CES 2020: A Fireside Chat with FTC Chair Joseph Simons

CTA chair/chief executive Gary Shapiro held court with two high-level government leaders: FTC chair Joseph Simons and FCC chair Ajit Pai, in two separate, 30-minute CES sessions. Simons first took the stage and described the Federal Trade Commission’s mission as two-fold: competition and consumer protection. “As we get further into the digital age, privacy concerns are becoming more important,” he said, noting that the FTC Act governing these concerns is 100 years old. “It’s time for Congress to adopt something more modern.” Continue reading CES 2020: A Fireside Chat with FTC Chair Joseph Simons

CES 2020: (Finally) a Fireside Chat with FCC Chair Ajit Pai

Following a discussion with FTC chair Joseph Simons, CTA chair/chief executive Gary Shapiro welcomed FCC chair Ajit Pai who has tried unsuccessfully to speak at CES for the last two years. Since the change in net neutrality laws, which met with a lot of pushback, noted Pai, “speeds are up, broadband infrastructure is up, more fiber was laid in 2019 than in any other year.” “We often heard that this was the end of the Internet,” Pai said. “But more Americans get faster Internet than ever before.” Continue reading CES 2020: (Finally) a Fireside Chat with FCC Chair Ajit Pai

YouTube Limits Data Collection, Targeted Ads on Kids’ Videos

This month, Alphabet-owned YouTube will begin limiting the data it collects on children’s videos and stop showing data-driven personalized ads. Video creators will be responsible for designating their content as targeting children and will face Federal Trade Commission fines if they do not do so. The FTC also won’t allow comments or other features such as pop-ups meant to increase viewership. The new data collection limits will likely have negative financial implications for creators of free kids’ content. Continue reading YouTube Limits Data Collection, Targeted Ads on Kids’ Videos

FTC Reportedly Considering an Injunction Against Facebook

The Federal Trade Commission is contemplating a preliminary injunction against Facebook over antitrust issues related to its integration of apps and whether they work with competitors. The injunction could prevent Facebook from further integrating apps, and possibly reverse past integration as a step to breaking up the company. An injunction would require a majority vote of the five-member FTC. Prominent antitrust experts have presented a plan to separate Facebook from recent acquisitions Instagram and WhatsApp. Continue reading FTC Reportedly Considering an Injunction Against Facebook

Facebook Takes Additional Steps to Address Data Concerns

Facebook vice president of global affairs Nick Clegg warned antitrust regulators that data is not a simple resource that can be easily monopolized but a more complicated commodity that can be shared and kept simultaneously. He urged officials to “relinquish” the idea that data is a finite resource that can be used in finite ways. Facebook and Google are facing scrutiny by the U.S. Justice Department, Federal Trade Commission and European Commission. Meanwhile, Facebook is also testing a data portability tool. Continue reading Facebook Takes Additional Steps to Address Data Concerns

Democrats Introduce New Online Privacy Rights Legislation

The Consumer Online Privacy Rights Act (COPRA) is a stalled bipartisan effort to protect consumers’ rights to privacy and prevent companies from hiding what they are doing with user data. To reinvigorate the debate, a group of Democrats, led by Senator Maria Cantwell (D-Washington), top Democrat in the Senate Commerce Committee, introduced their version of the federal privacy law. “[Privacy rights] should be like your Miranda rights — clear as a bell as to what they are and what constitutes a violation,” she said. Continue reading Democrats Introduce New Online Privacy Rights Legislation

YouTube’s New Video Policy Places the Onus on Creators

Beginning in January 2020, YouTube will begin enforcement of a new policy that blocks data collection for content aimed at children. The result for content creators will be lower ad revenue; viewers will no longer see popular features such as comments and end screens. Google confirmed the new policy is the result of a $170 million settlement in September that YouTube reached with the Federal Trade Commission for allegedly violating children’s privacy rights under the Children’s Online Privacy Protection Act (COPPA). Continue reading YouTube’s New Video Policy Places the Onus on Creators

House Hearings Consider Balance of Competition, Privacy

The House Judiciary Committee held hearings that included testimony about how tech giants Amazon, Apple, Facebook and Google have collected significant quantities of data that give them a dominant market power that endangers consumer privacy. House Republicans, however, noted that strong data protection regulations in Europe, as well as other privacy regulations, could hurt competition among these companies. The hearing is the latest effort in the House’s antitrust investigation into digital giants. Continue reading House Hearings Consider Balance of Competition, Privacy

Walmart Aims to Take On Amazon by Subsidizing Vendors

It seems as though the holiday online shopping competition is already revving up. Walmart will soon release a new program to compete with the Amazon marketplace, which boasts 40 percent control of the U.S. e-commerce market. On Walmart’s own marketplace site, vendors pay a fee to list goods. Soon, the prices of some of these goods will temporarily lower, but the vendors will still be paid in full with Walmart subsidizing the difference, according to a description of the plan obtained and reported by Bloomberg

Continue reading Walmart Aims to Take On Amazon by Subsidizing Vendors

Facebook Freezes 69,000 Apps for Collecting Personal Data

Last Friday, Facebook suspended 69,000 apps, stating that they had harvested users’ personal data. The investigation began in March 2018, after the Cambridge Analytica scandal, leading to the suspensions of those apps, associated with 400 developers. The Massachusetts attorney general Maura Healey investigated and found that 10,000 of the 69,000 apps were found to have “potentially misappropriated” personal data, often as a way to add new users. The Justice Department and the FBI are still investigating Cambridge Analytica. Continue reading Facebook Freezes 69,000 Apps for Collecting Personal Data

FTC Begins Amazon Probe by Talking to Third-Party Vendors

The Federal Trade Commission has begun its investigation of Amazon by trying to determine if small businesses do in fact have alternative marketplaces. Several attorneys and “at least one economist” have been conducting 90-minute interviews with some of Amazon’s third-party vendors, to see if they do earn revenue from eBay, Walmart or other shopping sites. According to former FTC staffer Michael Kades, the length of the interviews and number of staff dedicated to the task indicates the agency is doing a “serious job.” Continue reading FTC Begins Amazon Probe by Talking to Third-Party Vendors

Government Makes Bipartisan Push to Investigate Big Tech

Democrats and Republicans have come together to examine big tech companies. Last Friday, a bipartisan group of attorneys general in eight states and the District of Columbia began an antitrust probe of Facebook, and, on Monday, another such group announced its intention to investigate Google. Sources said attorney general Ken Paxton (R-Texas) is leading the Google investigation. The Federal Trade Commission, Justice Department, and House and Senate committees are also scrutinizing the tech companies. Continue reading Government Makes Bipartisan Push to Investigate Big Tech

Facebook’s Dilemma: Achieving Data Portability and Privacy

Facebook is trying to make good on two key promises: to protect users’ privacy and to allow them to move their data elsewhere. But the two goals may not be compatible, and Facebook is looking outside the company to get ideas on how to deliver both. The European Union and California passed laws that require Facebook to make users’ social media profiles easy to move to a competing platform. At the same time, Facebook agreed to enforce data protections as part of a $5 billion settlement with the Federal Trade Commission. Continue reading Facebook’s Dilemma: Achieving Data Portability and Privacy

State Attorneys General Team Up to Investigate Tech Firms

After several states began pursuing an antitrust probe of the big technology companies, sources reported that representatives of several state attorneys general met with top Justice Department officials to air their concerns about the lack of competition in the technology sector. Now, according to sources, a bipartisan group of states plans to initiate a joint antitrust investigation, to be launched as soon as next month. Sources say the investigation will focus on whether dominant platforms stifle competition. Continue reading State Attorneys General Team Up to Investigate Tech Firms

FTC Chair Open to Option of Breaking Up Major Tech Firms

Federal Trade Commission chair Joe Simons stated that, in the face of anti-competitive and antitrust behavior, he would be willing to break up the big tech companies, although, “it’s not ideal because it’s messy.” He’s head of a task force to examine these behemoths, including a close look at whether Facebook acquired startups, such as Instagram in 2012 and WhatsApp in 2014, to stifle competition. The FTC approved both purchases. The FTC is working in parallel with the Justice Department’s antitrust unit. Continue reading FTC Chair Open to Option of Breaking Up Major Tech Firms