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Submitted by Scott Cleland on Thu, 2017-01-26 17:45
House Energy and Commerce Committee Republicans formally asked FCC Chairman Agit Pai to close the docket on the set-top box proceeding because it is no longer under active consideration, and because it “remains an unnecessary regulatory threat to the content creation and distribution industries” and casts a “shadow over investment and innovation.”
This is a wise, pro-competitive, pro-property rights, and good government request from Congress to the new Pai FCC.
The FCC should efficiently utilize this decision opportunity to employ the statutory sunset provision in the law to permanently sunset and remove this unnecessary and serious regulatory threat to competition, copyrighted contractual content and its creation, investment, and innovation.
Submitted by Scott Cleland on Tue, 2016-10-25 22:59
This analysis of the competitive facts underlying AT&T’s acquisition of Time Warner is an outgrowth of my discussion of the acquisition on NPR’s Diane Rehm Show this morning with Cecilia Kang of the New York Times and John Bergmeyer of Public Knowledge. The show can be heard here.
My main point was that the competitive facts are the best friend of this transaction.
I elaborate on that conclusion below.
The key facts lead me to believe the transaction should and will be approved, most likely by the DOJ, because of: the antitrust-benign competitive share facts in all the relevant markets; the antitrust precedents that constrain the DOJ’s ability to successfully challenge in court a vertical merger with these benign shares; and the companies have signaled they understand that if any legitimate competitive concerns arise they can be mitigated successfully with conditions and DOJ oversight of the transaction.
If officials examine the competitive facts of this acquisition with an open mind and with due process, they’ll discover first impressions can be very misleading.
Submitted by Scott Cleland on Wed, 2016-10-19 14:12
The FCC’s proposed broadband privacy rules are haphazard and have more random and conflicting “gaps” than Swiss cheese has holes.
That’s because the FCC’s approach to privacy is obviously jurisdiction and technology driven, not consumer-driven.
When will the FCC put consumer privacy protection first, and join with the FTC to work with Congress to comprehensively update privacy legislation for the 21st century?
Consumers deserve so much better than this.
Let’s count the arbitrary and haphazard privacy gaps in the FCC’s proposed privacy rules.
Submitted by Scott Cleland on Fri, 2016-10-07 11:20
Listen to Google’s CEO Sundar Pichai when he says Google foresees a transformation from a “mobile-first world to an AI-first world,” because that is where Google-Android’s ~90% market dominance in mobile, search, and search advertising, is going to take the world -- like it or not.
As you will see, an “AI-first world” is also a “privacy-second world” and an “antitrust-cursed world.”
Just like Google’s unmatched data collection enabled it to figure out how to position itself to dominate the mobile Internet with Android’s contractual-tying over the last eight years, Google’s unmatched data collection currently is enabling it to figure out how to perfectly vertically-integrate a comprehensive-suite of home-related, products and services to dominate home-digital information and services with its just announced products: Google Home, Google WiFi, Allo, Google Assistant, Google Pixel, etc.
Naturally this Google “data-driven,” omni-integration will have big privacy and antitrust implications.
Submitted by Scott Cleland on Wed, 2016-09-07 13:57
Multiple sources indicate the FCC is on path to include in its final proposed AllVid set-top box order a de facto FCC office of copyright licensing to try and politically paper over obvious policy and enforcement gaps in FCC authority.
It is further evidence that the “Unlock the Box” proponents pushing AllVid are really bent on “unlocking the copyrights, licenses, and contracts” that collectively protect $200b worth of annual video programming business, not the purported $20b set-top box business.
That’s because AllVid proponents continue to demand their initial outrageous and unlawful claim that the FCC should force the pay TV and video programmer industries to give Big Internet companies their $200b of video programming flows for free -- because the Internet wants information to be free.
The FCC’s big legitimacy problem here is that the FCC is not operating in a legal area where they can argue they are due broad court deference, because in this instance the law is very clear.
The FCC does not have the authority to force property owners to give away their copyrighted property for free or to forfeit their legal licensing or contract rights.
Submitted by Scott Cleland on Thu, 2016-08-25 13:50
A fox should not be allowed to guard a henhouse, unless the farmer wants the fox to eat all the hens.
Neither should the world’s fiercest corporate opponent of copyright, Google, be allowed to be the FCC’s technological guard of $200b worth of annual video programming revenues, in the FCC’s AllVid Set-Top Box rulemaking, unless the FCC wants Google-YouTube and others to be able to pirate the nation’s video-programming property without paying for it.
Submitted by Scott Cleland on Fri, 2016-04-22 10:34
FCC’s AllVid NPRM Is Anticompetitive, Anticompetitive, Anticompetitive
WASHINGTON D.C. – The following quotes are based on NetCompetition’s submitted comments on the FCC’s AllVid NPRM and may be attributed to Scott Cleland, Chairman of NetCompetition:
“Think for a moment. Would anyone think it “pro-competitive” if a government agency mandated an “Unlock the Big Box Stores” ruling so that WalMart, Target, or Best Buy could no longer install effective doors, locks, security guards or anti-theft devices on their store perimeters to protect the value of their inventory, all so that Google, Amazon, or eBay could take it for free and then profit from selling it online?”
“The companies that comprise the ~$200b pay TV industry are the video programming functional equivalent of Big Box stores, and the FCC’s AllVid NPRM is the functional equivalent of a looters pardon.”
“Consider how the FCC’s “Unlock the Box” looters’ mantra is profoundly anticompetitive and destructive.
Submitted by Scott Cleland on Wed, 2016-04-13 10:05
The FCC’s AllVid proposal is déjà vu. We have seen Google-YouTube’s piracy-as-negotiating-leverage MO in action before.
Submitted by Scott Cleland on Mon, 2016-04-11 12:37
For the last year, Google was above state law in the U.S.; fortunately, it no longer is.
The U.S. Fifth Circuit Court of Appeals just ordered dismissal of the Machiavellian preliminary injunction Google won in Federal Court over a year ago that squashed a 2014 Mississippi State Attorney General subpoena and state law enforcement investigation of Google’s alleged facilitation of “dangerous and illegal activities through its online platforms.”
Forty State AGs backed MS AG Jim Hood in Court because the Federal injunction that Google won effectively neutered all State AGs from investigating or prosecuting Google for most any alleged Google violation of most any State consumer protection law.
Simply, the Appeals Court ruled that Google faced no “irreparable injury” in having to comply with the MS State AG’s broad subpoena, and that “[T]he normal course of state criminal prosecutions cannot be disrupted or blocked on the basis of charges which in the last analysis amount to nothing more than speculation about the future.”
Submitted by Scott Cleland on Mon, 2016-04-04 22:29
EU antitrust chief Margrethe Vestager -- who formally has charged Google with abusing its search monopoly, and who also is formally investigating Google’s alleged contractual tying of its monopoly search app to create a monopoly Android operating system -- speaks Friday at the ABA antitrust spring meeting in D.C. on a panel with DOJ antitrust chief William Baer and FTC Chairwoman Edith Ramirez, at the awkward juncture when the EU is escalating its antitrust prosecution of Google while America’s DOJ and FTC apparently are ignoring the obvious antitrust case they know they have against Google.
In a nutshell, the obvious antitrust case against Google is this: the DOJ and FTC have long established Google is a monopoly demanding antitrust vigilance; U.S v. Microsoft settled that a licensed OS market definition excluding Apple is reasonable and that tying a monopoly OS to a strategic app harms consumers and innovation; Google’s contractual tying of its monopoly search to a nascent Android OS is a mirror image of what DOJ already proved monopolistic in U.S. v. Microsoft; Google apparently has monopolized mobile search and search advertising and prompted its only competitors, Yahoo and Microsoft Bing, to give up seriously competing with Google; and now the potential harms to consumers and innovation are escalating as Google is attempting to extend its Android mobile OS monopoly economy-wide to monopolize the Internet of Things.