Genachowski Defends FCC Fine on Google
FCC Chairman Julius Genachowski was prodded by Senate Appropriations Subcommittee on Financial Services Chairman Dick Durbin, D-Ill., about the agency’s role on protecting consumer privacy, at a budget hearing Wednesday. Genachowski said the FTC has the “lead” on privacy issues and held his cards close on the FCC’s position on News Corp. allegations of journalists hacking U.K. cellphones.
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Durbin asked why the FCC proposed a $25,000 fine on Google following the agency’s investigation into its collection of personal information from Wi-Fi networks. “That is somewhere short of a tap on the wrist,” Durbin told Genachowski. “The fine itself was for serious concerns about the investigation process itself,” said Genachowski. “It wasn’t a violation of the law as it was written.”
Durbin asked Genachowski if the FCC is “the cop on the beat” on privacy. Genachowski said the “FTC has taken the lead” on the issue. “We are interested in consumer protection with regard to communications providers, in addition to the core confusion of privacy issues you raised,” Genachowski said. “Another concern is that the more people distrust the Internet, the slower broadband adoption will be, which undermines broadband opportunity.”
Genachowski defended the FCC’s budget request of $347 million for FY2013, a 2 percent increase from FY2012. Genachowski said “few agencies provide a higher return on investment” and the increase is “essentially flat adjusting for inflation.” The agency has endeavored to make “technology investments aimed at saving money, and public safety investments aimed at saving lives,” he said. Durbin asked why the FCC’s budget request included a 10 percent decrease in the inspector general’s appropriation. “IG’s are a little more popular around here since the GSA mess,” Durbin said. Genachowski responded that “there may have been a mistake somewhere in the process. We will work on that with you."
Ranking Member Jerry Moran, R-Kan., said he’s “very interested" in the FCC’s spectrum policies and had “some concerns about the consequences” of its recent USF order to help pay for broadband deployment. Genachowski said “one of the biggest opportunities” is if the FCC can encourage federal users of spectrum to share with the commercial sector. He said the agency is working to test spectrum-sharing scenarios between government users of the 1755-1780 MHz band with commercial providers.
Sen. Frank Lautenberg, D-N.J., applauded the FCC’s work on USF reform and took a swipe at News Corp. over allegations of phone hacking and other malfeasance in the U.K. Genachowski would not say what impact the allegations would have on the FCC’s consideration of renewing News Corp.’s TV station licenses. He said the agency is “aware of the serious issues raised in the U.K.” and “we would have to look at the facts and apply the law.”