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FCC’s Haphazard Privacy Policy Gaps Disserve Consumers

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.

Why Google Fiber is Dead Business Model Walking

Google deserves credit for trying something very difficult, and putting some big money where their mouth was.

That said Google Fiber looks like dead business model walking. 

Consider what happened this past summer.

June 22, 2016, it was announced that Google acquired Webpass, a wireless ISP. 

In July, per The Information reporting, “Alphabet CEO Larry Page ordered Google Fiber’s chief, Craig Barratt, to halve the size of the Google Fiber team to 500 people. …Mr. Page has also told Mr. Barratt to reduce the current cost of bringing Google Fiber to customers’ homes to one-tenth the current level.”

Google’s New Home/Hardware Integration Has Privacy & Antitrust Implications

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.

FCC’s STB “Unlock-the-Box” Is a Trojan Horse to Unlock Copyright Licensing

When a PR tactic masquerades as principle or sound policy a mess inevitably ensues.

Google and Public Knowledge, the two leading corporate and interest group entities respectively that are opposed to copyright in America, plotted that they could disguise their real intent to “unlock copyright licensing” and devalue the valuable “information flows” of the $200b a year U.S. pay TV industry, with a clever #UnlockTheBox consumer “gift”/sneak attack… just like Greeks did in the Trojan War using the purported “gift” of a huge wooden “Trojan Horse” as a trick to secretly enable soldiers hidden inside the horse to gain entry to the securely protected city of Troy.  

We now know that this FCC AllVid/Set-Top-Box (STB) rulemaking was not really about unlocking set-top-boxes for consumer benefit, but predominantly about unlocking copyright licenses for the nation’s most valuable video programming – to de facto, open-force more proprietary information to be free on the Open Internet.

Will FCC Force AllVid Search Neutrality on Pay TV Providers to Help Google?

How can the FCC imagine it is pro-competitive to help Google expand its search monopoly by illegally forcing the search neutrality principle that Google opposes as never justified, on competitive pay-TV providers, in order to divert pay-TV viewer traffic to piracy-friendly Google-YouTube’s 1.6 billion viewers?  

Will the Federal Communications Congress Try to Unlock Copyright Licensing?

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.

Appeals Court Blasts Big Deregulatory Hole between FCC & FTC Jurisdictions

FCC and FTC meet the law of unintended consequences.

A Ninth Circuit Court decision overturned an FTC enforcement action against AT&T for “throttling” broadband data speeds by definitively ruling that the FTC did not have any legal jurisdiction over AT&T (and other common carriers) because of the explicit common carrier exemption in the FTC’s core Section 5 legal authority.

Will FCC Allow Google to become the Fox that Guards its AllVid Henhouse?

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.

Will FCC Allow Competition to Google’s & Facebook’s Advertising Monopolies?

Why is the FCC protecting and facilitating online advertising monopolies?

How can the FCC square its “competition, competition, competition” PR mantra with its regulatory plans for applying new anticompetitive privacy rules only on ISPs and not the “edge” online advertising monopolies -- Google and Facebook?

Simply as it relates to online advertising, the FCC’s new proposed Title II privacy rules would require ISPs with existing advertising businesses, or those planning to enter, compete, and grow in the online advertising market, to be subject to a new and special, privacy opt-in, consumer-consent framework where they alone in the marketplace would have to secure users’ advanced permission to use a majority of their data for advertising purposes.  

Why Did Google & Facebook Stop Competing With Each Other?

The evidence shows that Google & Facebook -- by far the world’s most dominant Internet gatekeepers – are not an Internet advertising “duopoly,” but worse, two separate Internet advertising monopoly platforms, one in search advertising and another in social media advertising.

That’s because search and social media advertising are not competitive substitutes for each other, but are proving to be synergistic advertising complements to each other in company marketing campaigns, because generally search advertising excels at lead generation and local business visibility while social media advertising generally excels at building brand awareness and interactivity with consumers.

Tellingly, after beginning to directly compete in social in 2011 and in search in 2013, Google and Facebook both abruptly, coincidentally, and effectively stopped competing directly with each other in both the search and social media markets in 2014.

Apparently, they either jointly agreed in 2014 to divide up the marketplace and no longer directly compete with each other to maximize their exceptional mobile growth and profitability; or they concluded independently -- from their initial directly competitive forays into the other’s core markets -- that the other commanded unbeatable monopoly network effects, so not directly competing with each other would maximize their exceptional mobile growth and profitability.     


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