FTC Commissioner Rebecca Kelly Slaughter and former Commissioner Maureen Ohlhausen agreed Tuesday the agency needs more data security authority, though they largely offered competing views. At an Atlantic magazine event, Slaughter spoke of the agency’s inability to deter bad actors because of its lack of civil penalty and rulemaking authority.
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
DOJ can appear during oral argument in Apple’s appeal of a class-action antitrust lawsuit alleging it monopolized distribution of App Store applications (see 1806180053), the Supreme Court decided Monday in Apple v. Robert Pepper, et al., docket 17-204. The solicitor general in May asked the court to grant Apple's petition, arguing the 9th Circuit misapplied Illinois Brick preventing indirect purchasers from seeking certain antitrust damages passed on by third parties (see 1805090051). States have “allowed indirect purchasers to sue under state antitrust law, leading to decades of experience that contradict the predictions and policy judgments underlying Illinois Brick,” 31 states argued in favor of Pepper. Computer & Communications Industry Association argued in favor of Apple, saying pass-through harm leads to duplicative damages claims in conflict with the high court’s precedents. Illinois Brick “preserves standing for a direct purchaser to recover damages for overcharges, whether or not those charges are passed along to downstream customers,” BSA|The Software Alliance argued. Open Markets Institute argued “Apple falsely implies its app store is a neutral and open marketplace. … Through contractual and technical restrictions, the company compels owners of iPhones and developers of iPhone apps to conduct business solely on its App Store and on its terms.”
The House Commerce Committee is in contact with Facebook about a potential briefing with members this week on the recent breach (see 1810010032), a committee aide said Tuesday. A Senate Commerce Committee aide said his committee also expects a briefing with Facebook but declined to specify timing. Additionally, the House Judiciary Committee requested a bipartisan briefing from Facebook, an aide said Tuesday. The company didn’t comment.
Google CEO Sundar Pichai agreed to testify before the House Judiciary Committee this fall. That came after meeting House Republicans Friday led by Majority Leader Kevin McCarthy, R-Calif., and House Judiciary Committee Chairman Bob Goodlatte, R-Va. (see 1809270044).
The House Judiciary Committee expects to host Google at a hearing later this year, an aide told us Thursday. She didn't say whether testimony will come from CEO Sundar Pichai, who is to visit the Hill this week to speak with lawmakers from both chambers (see 1809250050). The aide said Chairman Bob Goodlatte, R-Va., was part of a group of House lawmakers scheduled to meet with Google Friday and referred further questions to House Majority Leader Kevin McCarthy, R-Calif. Sen. Brian Schatz, D-Hawaii, told us he was to meet with Pichai Thursday. Asked Thursday, Goodlatte declined to comment about who will testify for Google. A Google spokesperson cited a previous statement from Pichai saying he looks forward to working with members of both parties without committing to testifying.
Senate Commerce Committee Chairman John Thune, R-S.D., expects to finalize draft data privacy legislation before year-end, he told reporters. Earlier Wednesday, the committee heard testimony (see 1809250049) from Amazon, Apple, AT&T, Charter Communications, Google and Twitter that edge providers and ISPs should be subject to the same pre-emptive federal privacy legislation.
The Senate Commerce Committee’s privacy hearing Wednesday (see 1809200050) is a good opportunity for prominent platforms to weigh potential federal legislation, Chairman John Thune, R-S.D., told us Monday. Asked about committee criticism for its all-industry witness list, Thune looked forward to listening to privacy groups at a future hearing. Representatives from Google, Twitter, Apple, Amazon, AT&T and Charter Communications will testify Wednesday (see 1809120036).
DOJ and 14 state attorneys general offices discussed “ways the department and state governments can most effectively safeguard consumers using online digital platforms,” Justice said. The topic of the Tuesday meeting evolved over time (see 1809210047), after President Donald Trump attacked online platforms for alleged conservative bias and threatened antitrust action. “The discussion principally focused on consumer protection and data privacy issues,” Justice said. Those attending included Attorney General Jeff Sessions, Deputy AG Rod Rosenstein, Acting Associate AG Jesse Panuccio and Assistant AG Makan Delrahim. State officials included Alabama AG Steve Marshall, California AG Xavier Becerra, District of Columbia AG Karl Racine, Maryland AG Brian Frosh and Mississippi AG Jim Hood, all Democrats, and Louisiana AG Jeff Landry, Nebraska AG Doug Peterson, Tennessee AG Herbert Slatery and Utah AG Sean Reyes, all Republicans. AG offices from Arkansas, Arizona, Missouri, Texas and Washington sent staff. A federal probe of online platforms would be “inappropriate, undermine the free speech rights of tech platforms and ultimately do a disservice to consumers,” the Information Technology and Innovation Foundation wrote in USA Today. “These businesses have no incentive to inject bias in their platforms, because consumers across the political spectrum use social media and discriminating against any of them could drive people away,” wrote ITIF Vice President Daniel Castro and Research Assistant Michael McLaughlin. Delrahim at a separate appearance Tuesday on antitrust efforts committed Justice to “accelerating the pace of merger review consistent with enforcing the law because we believe that doing so is good for American consumers and taxpayers.”
Sundar Pichai expects to meet Friday with lawmakers on Capitol Hill, the Google CEO confirmed in an email Tuesday. Senate Intelligence Committee ranking member Mark Warner, D-Va., told us the executive is meeting with a “partisan group” of House Republicans Friday. He cited the platform’s recent absence from a hearing with Twitter and Facebook executives (see 1809050057). “I look forward to meeting with Members on both sides of the aisle, answering a wide range of questions, and explaining our approach,” Pichai said in a statement. “These meetings will continue Google's long history of engaging with Congress, including testifying seven times to Congress this year.” House Majority Leader Kevin McCarthy, R-Calif., has been a vocal critic of alleged anti-conservative bias on Google, announcing Sept. 11 an invite to the platform. Google didn't respond to questions about reports Pichai also plans to testify before the House Judiciary Committee after the November elections. The committee didn’t comment. Content Creators Coalition launched a campaign Tuesday calling for Congress to subpoena testimony from Google so it can answer questions on “the Russian attack on the 2016 election, as well as the company’s long history of ignoring illegal activities on its networks.”
Craig Newmark is in contact with Facebook, Google and Twitter about The Markup, an investigative journalism platform that will use data science to cover big tech, the Craigslist founder said Monday. Newmark, who won't have an editorial role in the new venture, contributed $20 million, and it's headed in part by ex-ProPublica journalists. Newmark said at the National Press Club that he's working “quietly and diplomatically,” talking to online platform representatives, platform critics and reporters, “to make sure everyone plays well together.” Asked if representatives from Facebook, Google and Twitter are involved in discussions, Newmark said, “It involves everyone.” The event’s moderator noted a New York Times article on the new venture describes concerns that The Markup’s data collection practices might violate platform terms of service. “Getting to the truth” often requires data science, Newmark said. There’s a lot of conjecture about tech platforms, and “we need something real,” he said. Journalism is in “crisis,” he said, suggesting The Markup adopt values that are in line with The Trust Project, a media company collaboration aimed at creating more trust in the press. Asked about platform bias, given claims coming from the White House and conservative lawmakers, Newmark said he's more interested in the details of platform terms of service and whether companies are upholding promises. He backed more enforcement to hold platforms accountable. Newmark also suggested consumers should have a certain level of “media literacy,” the ability to sniff out when a news story is “fake.” National Religious Broadcasters CEO Jerry Jones warned big tech platforms Friday there will be calls to re-examine Section 230 of the Communications Decency Act if platform bias isn't addressed this year.