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No Change on Chevron, Suit Says Apple Rigged iOS 13, Will 6G End the Smart Phone?

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Photo of FCC Chairman Ajit Pai from TechCrunch

Federal Communications Commission Chairman Ajit Pai, when asked if he had changed his position on the issue of Chevron deference said he had never, to his knowledge, taken a position on the Supreme Court decision.

Pai was speaking at a Technology Policy Institute event on Thursday, the day after Thomas Johnson of the FCC general counsel claimed FCC authority to interpret Section 230 of the Communications Decency Act.

See “FCC Details Section 230 Authority Argument,” Broadband Breakfast, October 22, 2020

Johnson said that because of the “unique interest” generated by Pai’s decision to move forward with the rulemaking to interpret Section 230, “Chairman Pai has now asked me to make my analysis public, in furtherance of his longstanding commitment to transparency in the rulemaking process.”

Johnson responded to public commentators who claim through what is sometimes called “Chevron Step Zero” that “Congress did not intend for the Commission to administer Section 230, and therefore, the Commission has no authority to interpret it.”

Chevron deference comes from the landmark supreme court decision Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., – the landmark 1984 decision governing administrative law.  Johnson said that “Congress is well aware that the ambiguities it chooses to produce in a statute will be resolved by the implementing agency.”

When Pai was asked if he believed that Twitter and other platforms are publishers under the law or how to save the internet without destroying it, Pai emphasized that the FCC was squarely concerned about the interpretation and scope of the liability provision and giving meaning to terms some find ambiguous. “We’ll leave the broader policy debate to others at this time,” he said.

Apple sued for rigging iOS 13 for ‘Massive Data Usage’

Apple embedded a “consuming code” for “its own undisclosed purposes and its own benefit” in last year’s iOS version 13, according to a lawsuit filed Saturday in federal district court in San Jose, seeking class-action status.

This code, according to the lawsuit, caused iPhone users to face “exorbitant” overage fees from their carriers as their monthly data allowances depleted without their knowledge.

“Apple has the ability to correctly identify and account for all mobile data usage by its numerous operating system features,” said the complaint. iPhone makers “tried to hide the massive data usage” by “miscategorizing it in a way that many users would not discern,” which violates California consumer protection and unfair competition laws.

“Apple knew what it was doing, and it tried to keep users from discovering the amount of money Apple was costing them. Apple also deliberately withheld from users the ability to control the costs.”

All who installed iOS 13 on their iPhones before Apple’s June release of version 13.6 which eliminated the consuming code are identified as the potential class for the suit.

6G to end smart phone era

6G could be the end of the smart phone era, projected Virginia Tech Professor Walid Saad at a symposium last week on so-called “6G” technology.

Enabled in part by greater spectrum, integrated satellite networks, energy transfer and harvesting, and edge artificial intelligence, 6G promises multisensory XR applications, connected robotics and autonomous systems, wireless brain computer interactions, and blockchain and distributed ledger technologies, explained Saad.

6G has the potential to integrate technology into people’s daily experience. In the morning during a workout, a person would have a virtual assistant helping with your workouts that would compile and sent data to a doctor warning about any potential health issues, explained Mazin Gilbert, electrical engineer for AT&T.

Synchronous multiparty gaming will be enabled through the mobile cloud and autonomous cars and navigation through XR devices will become the norm. When attending football games, people will be able to have the same experience from any seat in the stadium.

Through 6G people will be able to do more at home, from trying on clothes at a store to having medical procedures. The low latency that started in 5G will progress to enable more holographic communications.

Energy efficiency will be a big part of 6G, said Saad. He predicted that in the next 5-10 years more devices will be reliant on battery which will make energy efficiency a lot more important. Going forward he suggested lowering energy and increasing AI would be one of the biggest challenges.

Reporter Liana Sowa grew up in Simsbury, Connecticut. She studied editing and publishing as a writing fellow at Brigham Young University, where she mentored upperclassmen on neuroscience research papers. She enjoys reading and journaling, and marathon-runnning and stilt-walking.

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Apple and Google Called ‘Gatekeepers,’ Huawei Trade Restrictions, Meta’s Antitrust Win

The NTIA claims that Apple and Google take advantage of their app stores to put unfair limitations on their competitors.

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Photo of NTIA Administrator Alan Davidson in 2017 by New America, used with permission

February 1, 2023 — Apple and Google are “gatekeepers” of the mobile app market, placing unfair limitations on competitors and ultimately harming consumers, according to a report issued Wednesday by the Commerce Department’s National Telecommunications and Information Administration.

The app market is almost entirely confined to the app stores run by Apple and Google, and the report alleges that these companies create unnecessary hurdles for developers — such as restricting app functionality and imposing “slow and opaque review processes.”

The NTIA’s recommendations, issued at the direction of President Joe Biden’s 2021 executive order on competition, include prohibiting self-preferential treatment from app store operators. The report also recommends that consumers be allowed to set their own default apps, delete pre-installed apps and have access to alternative mobile app stores.

Many of the recommendations echo the Open App Markets Act, a bill that gained significant bipartisan support in the last Congress but was not ultimately included in the year-end spending bill.

Alan Davidson, head of the NTIA, said that the agency’s recommendations would “make the app ecosystem more fair and innovative for everyone.”

“This report identifies important ways we can promote competition and innovation in the app market, which will benefit consumers, startups, and small businesses,” said Bharat Ramamurti, deputy director of the White House’s National Economic Council.

Apple and Google have previously argued that their stores allow users to access millions of apps while being protected from predatory apps and spam.

The report fails to “grapple with the acknowledged risks regarding consumer privacy, security and content moderation,” said Krisztian Katona, vice president of global competition and regulatory policy for the Computer  and Communications Industry Association, which counts Google and Apple as members.

Further trade restrictions for Huawei

The Biden administration has blocked export license renewals for certain U.S. companies that provide essential components to Chinese tech giant Huawei, and some officials are reportedly advocating for a complete ban on sales to the company.

The move is “contrary to the principles of market economy” and constitutes “blatant technological hegemony,” said Mao Ning, a spokesperson for the Chinese Foreign Ministry.

Many lawmakers on both sides of the aisle have raised concerns over alleged threats posed by Chinese technology to national security. At a Wednesday hearing about technological competition, Rep. Gus Bilirakis, R-Fla., called China “the greatest threat to our country right now.”

However, some industry experts argue that China is being unfairly targeted for broad digital privacy risks that are not actually country-specific.

Amid escalating tensions between the U.S. and China, TikTok CEO Shou Zi Chew is set to testify before the House Energy and Commerce Committee in March, where he will respond to committee members’ accusations that the app “knowingly allowed the ability for the Chinese Communist Party to access American user data.”

Meta reportedly beats FTC antitrust challenge

A federal judge on Wednesday denied a request from the Federal Trade Commission to temporarily halt Meta’s acquisition of a virtual reality startup, according to Bloomberg, citing anonymous sources.

The FTC originally sued Meta in July, claiming the purchase would allow the company to dominate the emerging virtual reality industry. The case was unusual in that it focused on future competition, rather than the existing marketplace.

The decision marks a major loss for FTC Chair Lina Khan’s crusade against Big Tech monopolies. Under the direction of Khan, the agency has taken aggressive antitrust action against several tech companies, including a high-profile suit against Microsoft’s acquisition of Activision Blizzard.

The agency now has a week to decide whether to appeal the ruling before the deal closes on Feb. 7.

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Robocallers Disconnected, Connecting Minority Communities Grants, No Licenses for Huawei

The FCC said that MV Realty used the PhoneBurner dialing platform, and ordered Twilio to disconnect the companies.

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Photo of Deputy Commerce Secretary Don Graves

January 31, 2023 – Responding to a Federal Communications Commission order on January 24 to disconnect robocallers, internet voice service provider Twilio on Monday told Broadband Breakfast that it had blocked the accounts of MV Realty and PhoneBurner.

State attorneys general have filed suit against real estate firm MV Realty for alleged real estate scams via robocall. The FCC said that MV Realty used the PhoneBurner dialing platform, and ordered Twilio to disconnect the companies from its voice-over-internet-protocol network.

“We are continuing to cooperate with the FCC about our efforts to further mitigate illegal robocalls and to ensure the safety, reliability, and trust in our platform with regards to wanted communications by our customers and end users,” said Twilio Corporate Communications Director Cris Paden.

The FCC has been increasingly aggressive against alleged robocallers. On December 21, the agency proposed a near $300 million fine against an apparently fraudulent robocall and spoofing operation called “Cox/Jones Enterprise,” placing the largest fine of its type, according to the agency. The robocallers placed more than five billion calls in early 2021 to more than a half a million phones and using more than a million unique caller ID numbers, according to the FCC.

The agency in November took action to crack down on straight-to-voicemail robocalls and in October launched an inquiry into combatting calls on non-internet-protocol networks.

12 minority-serving colleges received more than $33.5 million

The Department of Commerce’s National Telecommunications and Information Administration Monday awarded grants to 12 colleges as part of the Connecting Minority Communities Pilot Program. The program is directing $268 million to Historical Black Colleges and Universities, Tribal Colleges and Universities and focusing on training potential information personnel.

Deputy Commerce Secretary Don Graves said that the program creates “opportunities for good jobs supported by equitable hiring, fair compensation, safe workplaces, and the tools and training needed for long-term success.”

The grants, totaling $33.5 million, will be used to upgrade campus technology settings, equipment, and increase digital literacy skills in 10 states.

Awardees include: H. Councill Trenholm State Community College in Alabama, University of Arizona, Loma Linda University in California, Broward College in Florida, St. Augustine College in Illinois, Dominican University in Illinois, Simmons College of Kentucky, Coppin State University in Maryland, Elizabeth City State University and Saint Augustine’s University in North Carolina, Central State University in Ohio and Lincoln University in Pennsylvania.

Biden administration stopping export licenses to Huawei

The Biden Administration is refusing to give licenses that would permit U.S. companies to sell semiconductors to Chinese telecommunications giant Huawei, according to a report  published by Reuters on Tuesday. Citing anonymous sources, the story said the Biden administration has stopped approving licenses for U.S companies to continue to export most items to Huawei.

The Commerce Department and other branches of the government have been increasingly restricting the access of Huawei to American-created technologies, at the same time they have also added 38 affiliates to the so-called “entity list”. A Commerce Department statement from August 2020, regarding the list imposed license requirement for items subject to Export Administration regulations and modified several Huawei entity list entries.

In March 2020, then-President Donald Trump signed into law the Secure Networks Act, requiring the FCC to prohibit the use of moneys it administers for the acquisition of designated communications equipment. The act promoted the removal of existing compromised equipment through a reimbursement program – called Rip and Replace – and further directed the commission to create and maintain the covered list.

In September 2022, the The Federal Communications Commission’s added Pacific Network Corp. and China Unicom Operations Ltd. to a growing list of communications equipment banned from the country on national security grounds.           

In December, the agency took additional action to prevent Chinese tech companies deemed to be national security threats – such as Huawei and ZTE – from gathering data on and surveilling American citizens.

And on January 10, 2023, House Republicans created a select committee on the strategic competition between the United States and the Chinese Communist Party designed to conduct investigations, hold public hearings, and submit policy recommendations on China’s “economic, technological, and security progress and its competition with the United States.”

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TikTok to Testify Before House Committee, Tech Association Warns on Antitrust, US Telecom Board Adds

It will be the first time TikTok’s CEO will appear for a congressional hearing.

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Photo of Chew Shou Zi, CEO of TikTok by Sikarin Fon Thanachaiary used with permission

January 30, 2023 – The CEO of video sharing app TikTok will appear before the House Energy and Commerce Committee on March 23, the chair confirmed Monday.

Cathy McMorris Rodgers, R-WA, said Shou Zi Chew will testify on the Chinese firm’s consumer privacy and data security practices, its impact on kids, and its relationship with the Chinese government.

It is the first time Chew will appear before a congressional hearing, according to a committee press release.

“Big Tech has increasingly become a destructive force in American society,” the committee said in a release. “The Energy and Commerce Committee has been at the forefront of asking Big Tech CEOs – from Facebook to Twitter to Google – to answer for their companies’ actions. These efforts will continue with TikTok.

“ByteDance-owned TikTok has knowingly allowed the ability for the Chinese Communist Party to access American user data,” the statement added. “Americans deserve to know how these actions impact their privacy and data security, as well as what actions TikTok is taking to keep our kids safe from online and offline harms. We’ve made our concerns clear with TikTok. It is now time to continue the committee’s efforts to hold Big Tech accountable by bringing TikTok before the committee to provide complete and honest answers for people.”

Industry association warns of patchwork of state antitrust laws

The Computer and Communications Industry Association released a report Thursday warning about the negative impact on businesses of states implementing various antitrust laws.

The association, which counts big tech companies including Google, Amazon and Apple as its members, flagged antitrust laws before state legislatures, including abuse of dominance, price discrimination, mergers and acquisitions reporting requirements, monopoly and monopsony, and regulating app stores.

It warns that problems addressing these issues on a state level could deter pro-competitive business activity. The CCIA said without a clear definition of discrimination, monopoly and monopsony, these laws could harm legitimate business practices and rob consumers of discounts – in the case of price discrimination, where a business provides different prices for similar products.

Excess reporting requirements on M&A could increase compliance costs for businesses because they already report the information to the federal government, it noted. And laws that prohibit app stores from banning alternative payment systems used for third-party apps could present privacy and security risks because payments systems chosen by those stores aim to provide the greatest safety for consumers and compliance on data protection legislation, the CCIA added.

Similar app store legislation and other antitrust legislation have been introduced in Congress.

“For each of these competition areas, if states adopt an increasing patchwork of laws, businesses will face difficulties navigating conflicting disparate requirements, which could ultimately result in barriers to innovation and investment.”

State legislatures with antitrust legislation include Arizona, California, Florida, Georgia, Illinois, Louisiana, Massachusetts, Minnesota, Mississippi, New Jersey, New York, and Rhode Island.

Last week, the Justice Department sued Google for allegedly abusing a monopoly over the technology that controls the digital advertising market.

USTelecom adds three board members

Industry association USTelecom announced Friday the addition of three new board members.

Joining are Texas’s Totelcom Communications CEO Jennifer Prather, Brightspeed vice president of public policy and government affairs Tom Dailey in Charlotte, North Carolina, and altafiber’s vice president and general counsel Chris Wilson in Cincinnati.

The association also added two members to its leadership committee, including general counsel for Oklahoma-based MBO family of telecom companies Jake Baldwin, and Ryan Johnson, interim CEO of telecom Chariton Valley in Missouri.

“These inspiring leaders represent the full spectrum of USTelecom’s diverse and dedicated members, who are squarely focused on connecting communities and businesses to the power of broadband-enabled innovation,” the association said in a press release.

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