FCC’s AllVid Proposal Is Really The Great Google Ad Grab

While the PR cover story of the FCC’s AllVid proposal may be about more consumer choice and competition to reduce the cost of cable set-top boxes, don’t be fooled.

In announcing it, the FCC Chairman admits there’s already consumer choice aplenty: “American consumers enjoy unprecedented choice in how they view entertainment, news and sports programming. You can pretty much watch what you want, where you want, when you want.”

And the AllVid proposal is not about saving consumers money.

If it were, the FCC would not be shunning the obvious, best and cheapest solution of replacing the need for a set-top box entirely, by modernly and naturally transitioning them to the sector norm of easily-downloadable, cheap/free apps.

Why FCC Title II Telephone Privacy Rules Can’t Work with an Open Internet

Square peg meet round hole.

The FCC is poised to try and force-fit inherently-irreconcilable, telephone closed-ecosystem privacy rules into a broadband open-system Internet. Good luck with that.

Expect the FCC to have fits trying to successfully craft workable, non-arbitrary, and legally-sustainable Title II broadband privacy rules in the year ahead.

It is a problem of the FCC’s own making.

In arbitrarily applying Title II telecommunications rules to only the ISP half of Internet communications, while politically exempting the entire edge half of Internet communications in its Open Internet order, the FCC has ensured that information that was proprietary and controllable in the closed telephone world becomes public and uncontrollable in the open Internet world.

Horses meet open barn door.

Net neutrality activists wrongly imagined that Title II was all-purpose-regulatory-authority to impose “the strongest possible” Open Internet rules they wanted, like bans on paid prioritization, zero rating or usage based pricing, despite decades of Title II and court precedents that determine many types of economic price discrimination and pricing flexibility to be just and reasonable.

Leaked Google Financials Tie EU Search and Android Antitrust Cases Together

Summary:  Google Android’s >70% monopoly-size gross profit margins were made public for the first time when Android’s 2014 summary financials were disclosed in the Oracle v. Google copyright case (as evidence of Android’s commercial success to rebut Google’s claim that Android’s unauthorized use of Oracle’s Java APIs was “fair use” not commercial activity.) Combining this newly disclosed information with what we already know, Android likely generated a little less than a third of Alphabet’s 2015 revenues, but over a third of its 2015 gross profits. It is now clearer that the formal EU antitrust investigation of Android contractually tying Google’s dominant search to gain >80% share of the world’s smartphones will result in another EU Statement of Objections that could eclipse the current EU abuse of search dominance case in antitrust liability over time.  

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Why Zero Rating & Flexible Pricing Options Are Just & Reasonable to FCC

Always be careful what you ask for, because you might get it.

Net neutrality absolutists demanded Title II regulation of the Internet in hopes of getting the “strongest possible” net neutrality rules.

They imagined Title II to be their ultimate tool and power to enforce whatever they want to redefine net neutrality to be, whenever they want to redefine it: e.g. no paid-prioritization, no zero rating offerings, no usage-based pricing, etc.

Never mind the nettlesome fact, that net neutrality, as a term, principle or concept, can’t be found in U.S. law.

And never mind the nettlesome Title II reality, that decades of FCC/court precedents have established that economic price discrimination can be, and often is, legally just and reasonable.  

Net neutrality absolutists had to learn in Comcast v. FCC that the FCC could not enforce net neutrality without prior net neutrality rules.  

They learned the FCC did not have the legal authority to ban commercially reasonable market behaviors in Verizon v. FCC.

How Google-Android’s “Big MetaData” Collection Model Is Anticompetitive

The EC’s Antitrust Chief, Margrethe Vestager, is signaling that some Big Data may be anticompetitive. She recently told a conference: "These incredible powerful tools, like search engines and social media, are available for free. In many cases, that's because we as consumers have a new currency that we can use to pay for them – our data. …If a company's use of data is so bad for competition that it outweighs the benefits, we may have to step in to restore a level playing field."

The issue of whether privacy/data protection violations can be anti-competitive in Google’s case is now especially ripe.

The Net Neutrality Zero Rating Inquisition vs. the FCC

Historically accurate or not, the “Spanish Inquisition” is a well-known metaphor in literature for a group of intolerant elites that demanded orthodoxy from people, under threat of extreme consequences for heresy.

The twenty first century’s new technocratic elites, who politically made up net neutrality policy over the last fifteen years, are now sadly trying to dictate net neutrality orthodoxy on all the people of the world, whether or not they use the Internet.

These net neutrality absolutists are now accusing innovators of Internet “zero rating” plans, i.e. toll-free data plans, of net neutrality heresy, which must be punished severely with PR torture and banishment, in order to set an example for the masses of what happens to those who dare to challenge the church of net neutrality absolutism.

Recently in India, today’s modern day leaders of the Zero Rating Inquisition, Access Now activists, have demonized Facebook for the net neutrality heresy of offering a free stripped-down version of Internet access called “Free Basics” to the roughly billion Indians who can’t afford Internet access.

A rational person would say Facebook’s Free Basics offering is great and a very helpful innovation, because it’s so similar to the good of a library, school, or hospital that offers free services to the poor.

However, the net neutrality absolutists, who claim to be champions of free speech, are incensed that Facebook would empower a type of Internet free speech that is not pre-approved by them.

Alphabet’s Amoral Attitude and Acts

Summary

Does Alphabet Inc. -- arguably the world’s largest organization, with two billion plus users, most all the world’s information, most of the world’s top applications, limitless global ambitions, limited accountability, and self-proclaimed “don’t be evil” moral authority -- actually “do the right thing” as Alphabet publicly professes?  (Alphabet Inc. is the restructured company formerly known as Google Inc.)

If it matters to people that their leaders do what they say, to governments that corporate leaders obey the law, to the media that public leaders are honest to the public, and to the public that the leaders they trust are trustworthy, then this attempt to bring accountability to Alphabet-Google’s near unprecedented leadership, branding, and investment value has merit.

Accumulating evidence of Google’s amoral unaccountability certainly has merit and value to EU law enforcement and to U.S. State Attorneys General law enforcement, because it goes to whether or not Alphabet can be trusted to operate its business honestly and legally on its own; and to be trusted to make honest representations to law enforcement and the public.   

The FCC Isn’t Neutral toward Silicon Valley’s Dominant Edge Platforms

The world is watching and taking note of the FCC’s blatant competition double standard that totally favors America’s dominant edge platforms above most everyone and everything else.  

Consider an apt and illuminating comparison between the competition U.S. wireless broadband providers face versus the competition Silicon Valley’s edge platforms face.

The FCC’s Non-Neutral Internet Competition Policy

The FCC’s 2015 Open Internet Order has an implicit blind-eye competition premise in that it reclassified the broadband provider half of Internet access, and not the “edge” platform provider half, as subject to FCC Title II common carriage regulation.

That is because the FCC focused only on broadband and concluded its level of competition required the strongest possible net neutrality regulation, while it turned a blind-eye toward “edge” platforms in uncritically assuming that “edge” platform networks were competitive and thus did not have to be neutral, open, or transparent.

Can a FCC Semi-Circle of Innovation be as Virtuous as a Full Circle?

Does the FCC’s concept of a “virtuous circle of innovation” mean fostering a full and true “circle of innovation,” of not only edge provider innovation, but also ISP innovations of zero-rating pricing plans that lower users’ bandwidth costs and better fund more broadband deployment?

Please consider how the FCC’s eventual treatment of the many ISP plans for zero-rating pricing innovations could impact ultimate appellate review of the FCC’s Open Internet Order.   

The D.C. Circuit Court of Appeals in Verizon v. FCC said that the FCC’s 2010 justification -- for imposing net neutrality rules via its Section 706 authority, for the purpose of promoting broadband deployment and the “virtuous circle of innovation” that fuels Internet growth -- was reasonable and justified by the evidence.  

Google’s Secret US Loon Test Implicates the FCC, FAA, EPA, State, & DOD/NSA

Are several arms of the U.S. Government giving Google special treatment to enable it to secretly conduct a nationwide, two-year, test of Project Loon -- Google’s ambitious scheme to be the first company to commercialize the stratosphere -- in a manner that risks public safety, and environmental, and other harms?

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Q&A One Pager Debunking Net Neutrality Myths