| RUPERT MURDOCH TARGETS FACEBOOK: Media mogul Rupert Murdoch says Facebook should pay publishers for their content. "If Facebook wants to recognize 'trusted' publishers then it should pay those publishers a carriage fee similar to the model adopted by cable companies," Murdoch, the owner and executive chairman of News Corp., said in a press release on Monday. "The publishers are obviously enhancing the value and integrity of Facebook through their news and content but are not being adequately rewarded for those services," he added. Murdoch said that powerful web companies like Facebook and Google have become gatekeepers for media content and needed more transparency. He said a fee structure similar to that between cable providers and stations could ease tensions between Silicon Valley and media companies. He also slammed web companies for pushing questionable news sources. "Facebook and Google have popularized scurrilous news sources through algorithms that are profitable for these platforms but inherently unreliable. Recognition of a problem is one step on the pathway to cure, but the remedial measures that both companies have so far proposed are inadequate, commercially, socially and journalistically," Murdoch said. Murdoch's News Corp. would stand to heavily benefit from his proposed fees for content. The company's roughly $50 billion in assets include The Wall Street Journal, Dow Jones Newswires and The New York Post. Read more here. Please send your tips, comments and compliments to Ali Breland (abreland@thehill.com) and Harper Neidig (hneidig@thehill.com) and follow us on Twitter: @alibreland and @hneidig. We're also on Signal and WhatsApp. Email or DM us for our numbers. MONTANA BECOMES FIRST STATE IMPLEMENT NET NEUTRALITY AFTER REPEAL: Montana Gov. Steve Bullock (D) signed an executive order on Monday requiring internet service providers with state contracts to abide by net neutrality principles. The order makes his state the first to push back on the Federal Communications Commission's decision to repeal the open internet rules last month. "There has been a lot of talk around the country about how to respond to the recent decision by the Federal Communications Commission to repeal net neutrality rules, which keep the internet free and open. It's time to actually do something about it," Bullock said in a statement. "This is a simple step states can take to preserve and protect net neutrality. We can't wait for folks in Washington DC to come to their senses and reinstate these rules." The order says that in order to receive a contract with the state government, internet service providers must not engage in blocking or throttling web content or create internet fast lanes. Those practices were all banned under the Obama-era 2015 net neutrality order. The Republican FCC voted to dismantle those rules in December. Read more here. CONSERVATIVE GROUPS URGE CONGRESS TO LET NET NEUTRALITY REPEAL STAND: A coalition of conservative groups are urging Congress not to support a bill that would overturn the Federal Communications Commission's (FCC) repeal of net neutrality. Twenty-four free-market groups sent letters to lawmakers Monday calling on them to let the FCC's decision stand, arguing that the rules stifled investment from broadband companies. "Former FCC Chairman Tom Wheeler's 2015 decision to classify the Internet as a public utility under Title II was a solution in search of a problem, and disrupted the Federal Trade Commission's (FTC) tried and true approach," the letter reads. "This is not the way policy should be conducted, especially in an area that has such a substantial impact on the U.S. economy," the groups added. The letter's signatories include influential conservative groups like Americans for Tax Reform, FreedomWorks and Americans for Prosperity. Democrats argue that the net neutrality rules were essential to preserving an open internet, while most Republicans say they were unnecessary and that there is little threat from service providers abusing their power over access. Read more here. FACEBOOK ADMITS IT MIGHT NOT BE HELPING DEMOCRACY: Facebook acknowledged Monday the complicated effect its social network has on politics, admitting that it hasn't always been positive for democracy around the world. "Facebook was originally designed to connect friends and family -- and it has excelled at that," wrote Samidh Chakrabarti, Facebook's product manager for civic engagement. "But as unprecedented numbers of people channel their political energy through this medium, it's being used in unforeseen ways with societal repercussions that were never anticipated." Chakrabarti admitted that Facebook was "too slow" in dealing with threats in 2016. Katie Harbath, Facebook's global politics and government outreach director, also acknowledged the potential harm the platform could cause when left unchecked. Both Chakrabarti and Harbath stressed that Facebook is now committed to stamping out abuse and manipulation of its platform. Read more here. SECURITY FEARS DRIVE CRACKDOWN ON CHINESE TECH FIRMS: The federal government is taking steps to reduce the presence of some Chinese technology firms in American markets. Earlier this month, AT&T scrapped a deal with Chinese phone maker Huawei, reportedly as a result of pressure from anonymous U.S. lawmakers who cited national security concerns. Reuters reported this week that lawmakers are now pressing AT&T to sever all of its commercial ties with Huawei. And the White House blocked two acquisitions of American companies by Chinese firms in recent months, also citing "national security concerns." Lawmakers reportedly are pushing to keep Chinese telecommunications firm China Mobile out of the U.S. for similar reasons. The efforts come on the heels of a federal ban on anti-virus software produced by Russia's Kaspersky Lab, and underscore heightened concerns in Washington about privacy and spying threats. On Friday, Rep. Mike Conaway (R-Texas) told The Hill he would discourage American companies such as AT&T from making deals with Chinese tech firms like Huawei. "We don't want undisclosed back doors into our systems," Conaway explained. Read more here. FORMER UBER, GOOGLE EXEC TO RUN FOR OFFICE: Former Uber and Google executive Brian McClendon is launching a Democratic bid to be Kansas's secretary of state. McClendon's main platform points focus on technology-centric issues like securing elections, which in McClendon's words have been "hacked by foreign agents," and promoting a startup-friendly culture of innovation in Kansas. McClendon, who helped create Google Earth, most recently worked at Uber for two years as a vice president. He had previously worked at Google for 11 years as vice president of engineering. He is currently a professor at the University of Kansas and advises startups. Read more here. ON TAP: The FCC's broadband deployment committee will hold a meeting at 9:00 a.m. The Heritage Foundation will hold an event on antitrust policy at 9:30 a.m. IN CASE YOU MISSED IT: Wired: The lasting impacts of Trump's first year in office TechCrunch: Netflix is now worth over $100 billion Electronic Frontier Foundation asks court to strengthen privacy protections of smart phones at the border CBC: 'Terrifying': How a single line of computer code put thousands of innocent Turks in jail Bloomberg: EU tells Apple it still has to show them the money | 
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