Jimm Phillips

There has been little movement in the debate over the Marketplace Fairness Act (HR-684, S-336) since it failed to pass the Senate in December, eBay Senior Director of Global Public Policy Brian Bieron told us. The Senate had rejected including the bill’s provisions as an amendment to the 2013 Defense Authorization Act. The bill would allow state governments to collect sales taxes when an in-state resident makes an online purchase from an out-of-state retailer. “It seems like the same people who were for [the bill] before are for it now, the same people who had objections to it before have objections to it now,” Bieron said. “It seems to be pretty much the same debate it’s been for some time now, only louder.” The bill effectively gives states a “new power” to tax people outside their own borders, he said during an Information Technology & Innovation Foundation event Tuesday. EBay has been an active opponent of the Marketplace Fairness Act -- the company organized a gathering of small business owners on Capitol Hill earlier this month to voice their concerns about the bill.

Congress should take its time in considering the Cyber Intelligence Sharing and Protection Act (CISPA) and other cybersecurity legislation that may involve information sharing, said Ryan Radia, the Competitive Enterprise Institute’s (CEI) associate director-technology studies, at a joint CEI-TechFreedom event Monday. Both groups were part of a free market-oriented coalition that opposed CISPA when it was being considered last year (WID April 24/12 p5). The bill passed the House then but did not get a vote in the Senate amid strong White House opposition. There has been pressure for Congress to move quickly on legislation to augment President Barack Obama’s recent cybersecurity executive order, but a slower process won’t make the situation “much worse off” than it is already, Radia said. “This is the time to do something, but let’s do something right. This is going to be on the books for a long time, and a problematic law … will create bad precedent.” Radia and other experts said they were concerned about the implications of information sharing provisions in the current version of CISPA.

The House Judiciary Committee is looking at “all possibilities” for addressing cybercrime as part of the greater push on Capitol Hill to address cybersecurity issues, said Sam Ramer, the committee’s senior counsel. Cybersecurity is a “top priority” for Chairman Bob Goodlatte, R-Va., Ramer said at a Congressional Internet Caucus Advisory Committee panel Friday. He noted the House Crime Subcommittee held a hearing Wednesday on cybercrime and possible reforms to the Computer Fraud and Abuse Act (CD Mar 14 p1). There’s no singular “keystone” to addressing cybersecurity issues because those issues “affect so many different areas of our lives -- personal, commercial, R&D, medical,” Ramer said.

The U.S. needs to start resurrecting its image as a “great actor” in international telecommunications and highlight its good works on issues like cybersecurity, as it gears up for conferences after the World Conference on International Telecommunications (WCIT), said Roxanne McElvane, senior counselor on International Development in the FCC’s International Bureau and the chair of the ITU’s Development Sector Study Group 1, at an International Telecommunication Advisory Committee (ITAC) meeting Tuesday to prepare the U.S. for the upcoming World Telecommunication Development Conference (WTDC). The WTDC, scheduled for March 31-April 11, 2014, in Sharm el-Sheikh, Egypt, is one of several ITU-led conferences scheduled for this year and next that will determine the future structure and policy actions of the ITU. The U.S. was one of 55 nations that did not sign onto a revised version of the International Telecommunication Regulations (ITRs) at WCIT; 89 nations signed the revised ITRs (CD Dec 17 p1).

It’s “vital” the FTC continue taking on major tech companies to protect consumers’ privacy, FTC Chairman Edith Ramirez said Friday at an International Association of Privacy Professionals conference. Under former Chairman Jon Leibowitz, who retired earlier this year, the FTC played an “instrumental” role in elevating the discussion over digital privacy, including more than 50 enforcement actions over the past three years, Ramirez said. The agency currently has consent decrees with Google and Facebook to improve their privacy practices. “We haven’t been shy about taking on the tech giants,” Ramirez said. “That has been just tremendous.” The FTC’s efforts have also shifted the focus on other privacy issues, including the trend of companies like Apple and Google issuing shorter and simpler privacy notices, she said.

The FTC’s notice and consent-based regulatory model has worked fairly well, but it has its limits, FTC Commissioner Maureen Ohlhausen said Thursday at an International Association of Privacy Professionals conference. FTC Commissioner Julie Brill, in a separate event at the same conference, had discussed moving away from that model -- and toward a model that focuses on data use. “We've done pretty well with the deception-based model, and I wouldn’t want to give that up too easily,” Ohlhausen said. “With that being said, I think there is a role for unfairness. … But I think it’s important for us to follow the guidance Congress has set out in the statute for unfairness.” The FTC can declare a specific company action as deceptive or unfair -- and therefore unlawful -- under Section 5 of the FTC Act.

AT&T believes it can attract new customers -- and keep its existing ones -- because of its Mobile Share shared-data plans, as well as new opportunities in home automation and connected car services, said AT&T Mobility Chief Financial Officer Pete Ritcher Wednesday at a Deutsche Bank investor conference. More than two-thirds of the carrier’s smartphone subscribers -- 31.7 million -- are on tiered data plans like Mobile Share, he said. AT&T said 6.6 million subscribers were on Mobile Share plans as of Q4 (CD Jan 28 p19). Subscribers on Mobile Share plans will likely “buy bigger buckets” of data over time, Ritcher said. “As the usage grows on those devices … then we have an ability to build and sort of capitalize and grow our data revenues that are associated with that,” he said. AT&T hopes to increase revenue from each user on those plans as they begin to upgrade from smartphones using 3G technology to ones that utilize LTE, Ritcher said.

Internet stakeholders will need to participate in the debate over this Congress’s Internet policies if they want to win on issues like e-commerce sales taxes and cybersecurity, Sen. Ron Wyden, D-Ore., said Tuesday at an Internet Association event. Grassroots opposition to the Stop Online Piracy Act (SOPA) and the PROTECT IP Act (PIPA) was a turning point in the dialogue on Capitol Hill over Internet-related issues, Wyden said. “For the first time, the technology sector had beaten the middle man,” he said. “We've got to find a way to build on that, and that’s why your work is so incredibly important today.” Regulators and other lawmakers also outlined how upcoming policy discussions would involve the Internet community.

More operating system and device competition should mean lower smartphone subsidies across the industry over the next two to three years, said Verizon Chief Financial Officer Fran Shammo Monday at a Deutsche Bank investor conference. The move of two new major operating system entrants into the market -- Windows Phone and BlackBerry 10 -- is a good thing because “the more operating systems you have in the ecosystem, inherently the more competitive that system becomes,” he said. “I am a true believer that as these operating systems start to really take hold … then you are going to start to see more competition which leads to lower prices. So I think it is going to follow the same way that I watched the basic phones come over time. I think smartphones will do the same thing."

Prices in FCC spectrum auctions have been on the rise since the mid-2000s, but factors beyond the tradeoff between supply and demand make it difficult to say that rise is evidence of what the government says is a “spectrum crunch,” said Scott Wallsten, senior vice president-research for the Technology Policy Institute (TPI), at a TPI-led event Friday. In a report released Tuesday, Wallsten examined FCC data from the 69,000 spectrum licenses it has sold through auctions since 1996. The agency has been holding spectrum auctions since 1994. The data included in the report shows that while spectrum prices are continuing to rise, “the rate of price increase has probably been slowing” (http://bit.ly/WmcTWk)