Category: Internet & Broadband

1
FCC Net Neutrality and Muni Broadband Orders Examined in Upcoming Webcast
2
Net Neutrality Transparency Guidance Issued by FCC
3
Restrictive Website Rules Found to Be Anticompetitive
4
U.S. Justice Department Raises Concerns Regarding Proposal to Limit Federal Government’s Access to ‘Cloud’ Data
5
House Votes to Overturn FCC’s Net Neutrality Order
6
FTC Continues to Flex Its Enforcement Muscle With Regard to Social Media Promotional Activity
7
Court Dismisses Appeal Against FCC’s Net Neutrality Rules
8
Comcast/NBCU Joint Venture Telebriefing (3/29/11)
9
House E&C Committee Schedules Markup of Resolution to Reject FCC’s Net Neutrality
10
Net Neutrality Supporters Delay House Subcommittee Vote to Reverse FCC Rules [UPDATED: 3/7/11]

FCC Net Neutrality and Muni Broadband Orders Examined in Upcoming Webcast

The FCC’s recent net neutrality order, classifying broadband Internet access as a Title II common carrier offering, along with the FCC’s decision to preempt North Carolina and Tennessee state laws that placed limits on municipal broadband networks will be examined in a special live webcast on Broadband US TV on Friday, March 13th from 1pm-2:30pm (Eastern).

The webcast, entitled “FCC Takes Charge – Net Neutrality and Muni Broadband: New Title II Rules for Broadband Access and Preempting State Limits on Municipal Networks” will present details about the rulings, predictions on implementation and court challenges, and what these rulings are likely to portend for broadband in America over the next year and beyond.

Co-hosts Marty Stern of K&L Gates and Jim Baller of the Baller Herbst Law Group will be joined by two panels of prominent players and experts on both sides of these white hot issues.

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Net Neutrality Transparency Guidance Issued by FCC

In a preview of the disclosure obligations required by the FCC’s controversial net neutrality rules, the Commission recently issued advisory guidance to broadband service providers for meeting the transparency requirements of the 2010 Open Internet Order. The guidelines present a number of options by which broadband providers will disclose information regarding their network management practices, performance standards, and commercial terms to potential customers. The advisory guidance comes in response to requests from the broadband industry and Internet watchdog groups calling for flexible reporting requirements and regulatory clarity in advance of any enforcement of the transparency rules. Significantly, the advisory was issued by the Commission’s Enforcement Bureau and Office of General Counsel, reinforcing the potential for compliance exposure and that implementation issues will potentially be addressed in enforcement and complaint proceedings. The advisory guidance focused on five key areas:

      1.         Point-of-Sale Disclosures

The FCC clarified that the transparency rules do not require the distribution of information in hard copy or extensive training of employees regarding disclosure procedures. Broadband providers can normally meet their disclosure requirement by directing prospective customers to a web address at which the required disclosures are clearly posted and updated. In the case of “brick-and-mortar” retail outlets, broadband providers relying on the web for their point-of sale disclosure will need to make available equipment “such as a computer, tablet, or smartphone, through which customers can access the disclosures.”

      2.         Service Description

The Open Internet Order established an FCC broadband performance measurement project to assess network metrics such as connection speeds which broadband providers will need to disclose. The service description requirements vary depending on whether the provider offers fixed or mobile broadband. For fixed broadband, any provider which participates in the Commission’s performance measurement project can present the project’s results to customers to satisfy their disclosure requirement. Fixed broadband providers opting not to participate in the project may provide actual performance data based on internal testing, consumer speed reports, or reliable third-party sources.  

For mobile broadband, the FCC recognized the increased difficulties with obtaining accurate performance measurements. The guidance states that mobile providers “that have access to reliable information” may disclose the results of internal or third-party testing of mean upload and download speeds as well as mean roundtrip latency. The FCC will permit smaller mobile providers lacking advanced testing resources to provide a “typical speed range” experienced by most customers for each service tier offered along with a statement that the submitted data represents the provider’s best estimate of its service performance.

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Restrictive Website Rules Found to Be Anticompetitive

By Scott M. Mendel and Michelle S. Taylon

In Realcomp II, Ltd. v. FTC (6th Cir. April 6, 2011), the Sixth Circuit upheld the Federal Trade Commission’s conclusion that Realcomp, a Detroit area multiple listing service, violated Section 5 of the Federal Trade Commission Act by adopting rules restricting the ability of its broker members to advertise discounted brokerage services. While none of Realcomp’s website restrictions eliminated discount brokerage services or information regarding such services, they made such information less accessible and more costly to obtain. That was enough for the court to conclude that Realcomp’s policies had an actual anticompetitive effect based on the decline in the share of listings accounted for by discount listings.

The Realcomp decision can have significant implications for businesses, especially joint ventures, considering rules that restrict the information that can be disseminated over their websites. Rules that prevent, restrict, or make more costly the dissemination of information relating to discounted services must be reviewed carefully to determine their potential for anticompetitive effects.

U.S. Justice Department Raises Concerns Regarding Proposal to Limit Federal Government’s Access to ‘Cloud’ Data

By Oded Green

On April 6, 2011, the Senate Judiciary Committee held a hearing regarding a proposed update to the Electronic Communications Privacy Act (ECPA) in light of cloud computing and other technological developments that have occurred since the statute was enacted more than two decades ago. The ECPA is comprised of three laws — the Wiretap Act, the Stored Communications Act, and the Pen Register Act — which govern when certain parties, including law enforcement and other governmental authorities, may access communications and related data and to whom they may disclose those communications and data.

According to Senate Judiciary Committee Chairman, Patrick Leahy, with the explosion of cloud computing, social networking sites and other new technologies, determining how to bring ECPA into the digital age is one of Congress’ greatest challenges. He added that ECPA is “hampered by conflicting standards that cause confusion for law enforcement, businesses and consumers.” For example, the content of a single e-mail could be subject to as many as four different levels of privacy protections under ECPA, depending on where it is stored, and when it is sent.

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House Votes to Overturn FCC’s Net Neutrality Order

In a setback to one of the FCC’s key policy proposals, the House of Representative today voted in favor of a Resolution of Disapproval under the Congressional Review Act aimed at invalidating the Commission’s Net Neutrality Order adopted late last year. The vote follows months of heated industry and Congressional debate, including sharply partisan debate  about the Resolution’s merits, court challenges brought by wireless carriers, and procedural delays in bringing the Resolution to the House floor. While the Resolution seeks to overturn the FCC’s new anti-blocking, network management transparency, and traffic discrimination rules, it faces an uphill battle to become law. The Resolution would need to get passed by the Democrat-controlled Senate and get signed by the President. The White House recently said it plans to veto any measure overturning the FCC’s Net Neutrality Order.

FTC Continues to Flex Its Enforcement Muscle With Regard to Social Media Promotional Activity

by Ann M. Begley, Lawrence C. Lanpher and Carolina M. Heavner

The Federal Trade Commission’s (“FTC”) recent action against a company and its owner in connection with the allegedly deceptive promotion of music teaching tools signals FTC’s continued intention to keep social media promotional activity as an enforcement priority. In its third public investigation and second enforcement action since issuing its revised Guides Concerning the Use of Endorsements and Testimonials in Advertising[1] (hereafter, FTC Endorsement/Testimonial Guides) in December 2009, FTC continues to expand advertisers’ responsibility to monitor third party interactive media communications containing endorsements of advertisers’ products.

In finding the advertiser and its owner, an individual, responsible for assuring that endorsers adequately disclose any material connections with the advertiser, FTC states that an advertiser agreement that requires endorsers to comply with FTC guidelines and disclosures is insufficient in the absence of an advertiser monitoring program that ensures clear and prominent disclosure of the relationship with the advertiser.[2]

Thus, in addition to a $250,000 penalty against the company and its owner, FTC has required a far-reaching monitoring program – a potentially expensive and burdensome commitment for the future.

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Court Dismisses Appeal Against FCC’s Net Neutrality Rules

Today the FCC prevailed in the continuing skirmish over Net Neutrality in Washington. The U.S. Court of Appeals for the District of Columbia dismissed the lawsuits filed last January by Verizon and Metro PCS seeking to overturn the FCC’s Net Neutrality order adopted in December. The court found that the two wireless carriers filed their challenges too early and should have waited until the Net Neutrality order was published in the Federal Register. Both wireless carriers have indicated they will re-file their appeals.

Comcast/NBCU Joint Venture Telebriefing (3/29/11)

K&L Gates partner Marty Stern will be moderating a Law Seminars International telebriefing on the Comcast/NBCU joint venture Tuesday, March 29 at 3 p.m. ET.  Further information and registration details for the event are available by clicking here.  Also participating in the telebriefing will be Jordan Goldstein of Comcast Corporation, Parul Desai of the Consumers Union, and Ross Lieberman of the American Cable Association. The panel will cover the implications of the merger, including its likely impacts on industry, the conditions imposed by the Government, competitive concerns raised by the transaction, and the benefits offered by the parties. Click here for our recent blog post discussing our analysis of the FCC order approving the transaction, with conditions.

House E&C Committee Schedules Markup of Resolution to Reject FCC’s Net Neutrality

Yesterday the Communications and Technology Subcommittee of the House Energy and Commerce adopted a disapproval resolution (H.J. Res. 37) of the FCC’s 2010 Net Neutrality Order by a party-line vote. Today, the Energy and Commerce Committee issued a markup notice for the disapproval resolution of Monday, March 14 at 3:00 p.m. Assuming it is approved that same day (a likely outcome), it could be ready for House floor action fairly quickly (depending on the legislative priorities of the House majority leadership). 

Net Neutrality Supporters Delay House Subcommittee Vote to Reverse FCC Rules [UPDATED: 3/7/11]

In response to a request by House Democratic supporters of the Federal Communications Commission’s Open Internet (or Net Neutrality) order, the House Energy and Commerce Subcommitee on Communications and Technology has postponed its vote, scheduled for this morning, on the resolution to reverse the FCC order.  Although no new date has been announced, we understand that a hearing will likely be scheduled for next week.

Yesterday, Energy and Commerce Committee ranking member Henry Waxman (D-CA) and Rep. Anna Eshoo (D-CA), the ranking member on the Communications and Technology Subcommittee, wrote to Communications and Technology Subcommittee Chairman Greg Walden (R-OR) urging him to first hold hearings on the proposed resolution of disapproval under the Congressional Review Act in which supporters of the FCC’s order could be heard before having the vote.  Note that even if the House approves the resolution of disapproval, it must still pass the Senate and survive a presidential veto to successfully reverse the FCC’s order.

UPDATE: A hearing has been scheduled for March 9, at 10:30 a.m. in 2123 Rayburn House Office Building.

SECOND UPDATE (3/7/11): Representatives Waxman and Eshoo sent a letter on behalf of a group of net neutrality supporters in the House asking Chairman Walden and Rep. Fred Upton (R-MI), Chairman of the Energy and Commerce Committee, to allow lawmakers to offer amendments to the resolution of disapproval. The Democrats requested the Chairmen bring the disapproval measure as a regular House Resolution instead of under the Congressional Review Act.

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