FCC began most comprehensive look at media ownership regulation it ever has undertaken, Chmn. Powell proclaimed, by examining virtually all rules limiting broadcast ownership. At Thurs. meeting, item passed 3-0, with Comr. Martin concurring in part and Comr. Copps concurring but not voting in favor of item. Copps said he believed “tone” of Notice of Proposed Rulemaking (NPRM) indicated Commission had prejudged situation in favor of deregulation. Powell denied that, telling reporters after meeting that he was keeping “an open mind.”
Senate Judiciary Committee Chmn. Leahy (D-Vt.) is circulating draft bill that would require Foreign Intelligence Surveillance Court (FISC) to publicly disclose declassified data about electronic-surveillance activities under its jurisdiction. Leahy briefly mentioned draft document Tues. at committee hearing that explored implementation of USA Patriot Act and Foreign Intelligence Surveillance Act (FISA). Committee was looking at process by which Dept. of Justice (DoJ) and FBI obtain permission from FISC to perform wiretaps, process that supersecret court acknowledged had been abused by agencies.
Coalition of consumer groups asked FCC to cease its review of proposed merger of AT&T Broadband and Comcast until companies disclosed agreement that gives AOL carriage on what would be merged company’s high-speed Internet lines. FCC already had issued protective order with confidentiality provisions, allowing parties willing to sign it to examine certain proprietary information submitted by companies on merger. Despite those protections, AT&T and Comcast, as of our deadline, had not submitted to FCC 3-year nonexclusive agreement that makes AOL High-Speed Broadband available to homes served by what would be merged AT&T Comcast. “If the applicants [AT&T and Comcast] do not trust the Commission to follow its own rules and decline to risk providing the Commission with copies of the agreement, the applicants can withdraw their merger application,” said petition filed by Consumer Federation of America (CFA), Consumers Union, Center for Digital Democracy, Media Access Project. Consumer groups contended that Internet agreement was crucial to determining whether AT&T Comcast would have unfair market power over broadband Internet. Comcast spokesman hadn’t returned phone call seeking comment by our deadline.
Federal Election Commission held hearing Wed. on its rulemaking that would create carveouts from regulation of what Chmn. David Mason (R) called “a new term” -- “electioneering communications” -- despite fact that underlying law, Bipartisan Campaign Reform Act (BCRA) of 2002, is undergoing multiple court challenges. Under BCRA, any electioneering communication on broadcast, cable or satellite airing within 30 days of primary or 60 days of general election for federal office would have to meet strict rules. Any funder of such communication that spent more than $10,000 annually on such communications would need to disclose communication within 24 hours, and corporations and labor groups would be prevented from funding such communications during that window. Guidelines were inserted, according to BCRA’s authors -- Senate Commerce Committee Chmn. McCain (R-Ariz.) and Sen. Feingold (D-Wis.), Reps. Shays (R-Conn.) and Meehan (D-Mass.), and the electioneering communications authors, Sens. Snowe (R-Me.) and Jeffords (I- Vt.) -- to provide U.S. courts with bright line test to ensure law wasn’t overturned on First Amendment grounds. Hanging over FEC hearing, however, was very real possibility that BCRA rulemakings would in part or in whole be rendered moot by courts. FEC is expected to approve final rules on electioneering communications by Sept. 26.
Enumbering (ENUM) technology could pose serious threats to consumer privacy depending on how it’s deployed, speakers said Wed. at NTIA roundtable on convergence of communications. While Internet Engineering Task Force (IETF) has laid out bare-bones framework for ENUM -- which translates telephone numbers into Internet addresses in domain name system (DNS) -- work continues on implementing protocol. Given that ENUM applications aren’t yet known, speakers said, it’s difficult to predict either what effect they might have on consumers’ privacy -- or how to protect that privacy.
Senate Governmental Affairs Committee moved forward on homeland security under Presidential veto threat Thurs. while House took up its version (HR-5005) on floor. High-tech community continued to monitor issues of interest, including exception to Freedom of Information Act for voluntary disclosures of cybersecurity breaches and possible move of Computer Security Div. of National Institute of Standards & Technology (NIST) to new Dept. of Homeland Security. Veto threat, issued by White House spokesman Ari Fleischer, was related to Presidential authority on personnel moves unrelated to high-tech.
There was muted response from FCC Mon. on FTC Chmn. Timothy Muris’s suggestion that his agency should have jurisdiction over consumer protection and deceptive ad complaints against common carriers (CD March 18 p1). Currently, that’s realm of FCC. FCC Consumer Information Bureau Chief Dane Snowden said he hadn’t seen FTC’s proposal but said “there are many areas where we work with the FTC and other agencies within our respective jurisdictions to reach a common goal of protecting consumers.” Source in FCC Comr. Abernathy’s office said she would be “willing to consider a greater FTC role” in policing ads, given that FCC doesn’t have “particular experience or expertise.” Comr. Martin, speaking by phone from Istanbul, Turkey, said he hadn’t seen details of Muris plan but, like Snowden, mentioned that FCC and FTC had worked jointly in last few years on policies to protect consumers. “I don’t know anything else about the specifics of his comments or how he wanted to go forward,” Martin said. He declined to comment further. Without commenting specifically on Muris’s proposal, FCC Comr. Copps said agency could be doing more: “One thing is clear -- deceptive and misleading advertising is nowhere near under control. I believe it is well within the FCC’s jurisdiction to move aggressively against unscrupulous practices. We have the authority and the Commission ought to be vigorously using it.” Adviser in FCC Chmn. Powell’s office didn’t return phone call seeking comment. Jeffrey Chester, exec. dir. of Center for Digital Democracy (CDD), said FTC should move into a common carrier consumer protection due to its history and expertise. “Given the level of convergence in the industry, it makes a lot of sense,” Chester said. Chester said FCC hasn’t done good job with ad practices and said it was “another example of the FCC’s coziness with industry.” However, Chester said Muris’ comments on common carrier was a “tiny bone” he was throwing to Congress to take attention from recent merger review agreement between FTC and Justice Dept. (DoJ). Agreement would give DoJ all media mergers, which has drawn concern from Sen. Hollings (D-S.C.) as well as Chester and other consumer protection groups. Muris will testify before Senate appropriations subcommittee, of which Sen. Hollings is chmn., Tues. at 10 a.m. at Dirksen Senate Office Building Room 138.
Dept. of Justice (DoJ) and FTC formally unveiled their revised antitrust review process Tues., saying new procedures would reduce length of reviews and “thereby allow both agencies to enforce antitrust laws more effectively.” DoJ and FTC said they delayed introduction of their memorandum of understanding after congressional request for more information earlier this year. Having satisfied that request, they now have allocated primary responsibility for media and entertainment mergers to Justice. Senate Judiciary Committee ranking Republican Hatch (Utah) said it was “sensible arrangement that will result in more efficiency and certainty in the antitrust review of many important transactions… I have long been concerned about past allocation of investigations to each agency, which resulted in substantial delays and wasted enforcement resources.” House Judiciary Committee Chmn. Sensenbrenner (R-Wis.) expressed similar support for plan, saying that it would reduce “unnecessary and duplicative burdens placed on employees and employers.”
Reported agreement on merger reviews by FTC and Justice Dept. (DoJ) remained uncertain Thurs. and one senior official speculated accord was “dead.” Agencies had scheduled joint news conference Thurs. for “announcement,” but it was canceled with no comment from FTC or DoJ. FTC Comr. Mozelle Thompson attacked agreement in news release issued before conference, saying FTC Chmn. Timothy Muris hadn’t invited other FTC commissioners to review agreement before he executed it. Said spokesman for House Commerce Committee: “Frankly we were a little surprised to learn the Administration was moving forward on this proposal with little if any input from Congress… Obviously, if this is resurrected we would like to put our 2 cents worth in.”
Senate Judiciary Committee’s Constitution Subcommittee stepped up congressional review Wed. of possible constitutional implications of counterterrorism and wiretap legislation moving through both houses. Panel heard widely divergent views on ramifications of controversial Dept. Of Justice (DoJ) proposal. Supporters expressed confidence that measure, if signed into law, would withstand Supreme Court review. Critics said constitutional uncertainty from proposed revisions to wiretap law would jeopardize, rather than enhance, ability of govt. to prosecute terrorist suspects.