Press

UMG/EMI Merger Moves Forward in Europe; FTC Must Do More to Protect US Competition

September 09, 2012

Issues: 
UMG-EMI Merger

Background: Today reports surfaced that European antitrust authorities have voted to approve the proposed merger between the major record labels Universal Music Group (UMG) and EMI, with divestitures. The European Commission's final decision on the merger is expected to be made later this month. Previous reports indicate UMG will be required to sell global rights to Parlophone (except for the Beatles' catalog), Chrysalis, and Sanctuary, among other labels.

The Daily Mail's report on the advisory council's vote may be found here.

Public Knowledge's testimony to the U.S. Congress opposing the merger may be found here.

The following statement may be attributed to Jodie Griffin, Staff Attorney at Public Knowledge:

Public Knowledge Comments on Return of Rojadirecta Domain Names

August 29, 2012

Background: Today, the Department of Justice dismissed its case against Rojadirecta, returning to the company the domain names it seized over a year ago.

The following can be attributed to Sherwin Siy, Vice President of Legal Affairs:

"Like the unwarranted Dajaz1.com seizures, this case shows that the procedures for seizing domain names are flawed. It is far too easy for the government to seize domain names and hold them for an extended period even when it is unable to make a sustainable case of infringement.

"The constant expansion of copyright enforcement laws has given us a system where website owners are effectively treated as guilty until proven innocent. These sorts of abuses are likely to continue until there are adequate safeguards to assure accountability."

FCC Approval of Verizon/Cable Deal Highlights Lack of Broadband Competition

August 23, 2012

Background: Today, the Federal Communications Commission (FCC) approved the application of Verizon, Comcast, and other cable companies to transfer spectrum, cross-market each other’s products and establish a Joint Operating Entity to develop and control new technology. Last week, the Department of Justice (DOJ) released a proposed settlement with the same companies, subject to a number of conditions designed to limit the anticompetitive effects of the agreements.

The FCC's Order can be found here.

The following statement can be attributed to Gigi B. Sohn, President & CEO of Public Knowledge:

FCC's Special Access Order A Good First Step Toward Improving Competition

August 22, 2012

Background: Late yesterday, the FCC suspended its use of flawed guidelines that have allowed "special access" prices to skyrocket. Special access lines are high-speed data connections that competitors need to offer service to consumers--for example, to provide connectivity to wireless cell phone towers.

The following statement can be attributed to John Bergmayer, Senior Staff Attorney at Public Knowledge:

"With this action, the FCC has done right by consumers, and it's taken a first step toward promoting competition in wired and wireless communications.

"While consumers don't pay high special access fees directly, they still bear their cost. When competitive carriers have to pay unreasonably high rates for connectivity they may have to pass the costs along to users, or slow down new deployment.

FEC Approves Wireless Companies to Cut Campaign Text Donations

August 22, 2012

Background: Today, the Obama Campaign announced it was launching a text-to-donate fundraising campaign. Last week, the FEC approved this type of fundraising for federal campaigns. During the review of the rules, wireless carriers asked for permission to block any campaigns that "espouse views that may harm the wireless service providers' brands." While the FEC did not include this language in its advisory opinion, it did grant carriers wide latitude to refuse service by measuring a campaign against the carriers' own "established business requirements."

The following can be attributed to Michael Weinberg, Vice President, Institute for Emerging Innovation, Public Knowledge:

"The Federal Election Commission has granted wireless carriers the ability to cut off text message fundraising to candidates that take positions counter to the carriers' business interest. This could allow carriers to use its customers' donations - or potential donations - as leverage in policy debates.

AT&T's Attempt to Justify Blocking FaceTime Falls Short

August 22, 2012

Issues: 
Mobile Innovation

Background: Today, AT&T published its response to arguments by Public Knowledge, Free Press, and others that it is violating the FCC's Open Internet rules by blocking FaceTime, an iPhone video chat service, for many of its customers. AT&T's response is linked here.

PK's earlier press release on this matter is linked here.

The following statement may be attributed to John Bergmayer, Senior Staff Attorney at Public Knowledge:

"The FCC's Open Internet rules do not distinguish between pre-loaded and downloaded apps. They prevent carriers from blocking certain kinds of apps--period. AT&T is blocking FaceTime for all of its iPhone customers who do not subscribe to its premium 'Mobile Shared' plans, and this runs afoul of the rules.

FCC Grants Public Knowledge Confidentiality Challenge in Verizon/Cable Proceeding

August 21, 2012

Background: Today, the FCC granted Public Knowledge's challenge to Verizon and SpectrumCo's designation of parts of their Joint Operating Entity ("JOE") Agreement as highly confidential, marking the documents as only confidential instead. The provisions at issue related to the governance structure of the JOE.

The following statement can be attributed to Jodie Griffin, Staff Attorney at Public Knowledge.

"We applaud the FCC for recognizing that Verizon and SpectrumCo have claimed highly confidential protection for parts of the agreements that did not deserve such protection. While we believe the sections establishing the governance of the JOE do not deserve confidentiality protection at all and should be made public, we are glad that the new lower level of protection will allow parties that could be affected by the transaction to more comprehensively review the documents.

FCC Broadband Report Shows That Broadband Deployment, Adoption, and Competition are Still Inadequate

August 21, 2012

Background: Today, the FCC issued its Eighth Broadband Report.

The following statement can be attributed to John Bergmayer, Senior Staff Attorney at Public knowledge.

"The FCC has taken the right approach in its latest report on broadband deployment. 19 million Americans still do not have access to wired broadband at all, and until they do, the FCC is right to conclude that broadband is not yet being deployed in a 'reasonable and timely fashion.'

"The report also demonstrates that broadband adoption remains inadequate. The Internet is the primary way that many Americans communicate, stay informed, and manage their lives. Yet many others have access to wired broadband, but don't subscribe to it. The broadband that is available to them may be too slow, and not much of an improvement over their wireless or dial-up connections. Or it may be too expensive. Or they just might not see its value. Whatever the causes, more needs to be done to close the broadband gap.

AT&T's Plan to Restrict FaceTime Violates FCC Rules

August 17, 2012

Background: AT&T has announced that only users who subscribe to its "Mobile Share" data plans will be able to use FaceTime, an iPhone video chat service, on their cellular connections.

The following statement may be attributed to John Bergmayer, Senior Staff Attorney at Public Knowledge:

"By blocking FaceTime for many of its customers, AT&T is violating the FCC's Open Internet rules. These rules state that mobile providers shall not 'block applications that compete with the provider's voice or video telephony services.' Although carriers are permitted to engage in 'reasonable network management,' there is no technical reason why one data plan should be able to access FaceTime, and another not.

"'Over-the-top' communications services like FaceTime are a threat to carriers' revenue, but they should respond by competing with these services and not by engaging in discriminatory behavior."

Conditions on Verizon/Cable Deal Are Not Enough to Protect Competition

August 16, 2012

Background: Today, the DoJ announced that it will allow, with conditions, Verizon and a group of cable companies to cross-market each other’s products and establish a Joint Operating Entity to develop and control new technology. Verizon will also acquire large blocks of wireless spectrum formerly held by the cable companies. The FCC is also expected to approve the deal next week with similar conditions.

The following statement can be attributed to Gigi B. Sohn, President & CEO of Public Knowledge:

By allowing Verizon and the cable companies to sell each other's services, the DoJ and the FCC are acknowledging what has been clear for some time--that broadband competition policy in the United States has failed. For years, policymakers have hoped that "facilities-based" competition between wired broadband providers would protect consumers, drive down prices, and encourage new deployment. It is clear that this promise has not been fulfilled.