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2018年4月17日 星期二

Overnight Tech: Dem FCC commish stepping down | Lawmakers clash over internet 'fast lanes' | Justices toss Microsoft data case | Tech giants vow not to help cyberattacks | IRS tech troubles

 
 
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CLYBURN STEPPING DOWN: Democratic FCC Commissioner Mignon Clyburn announced today that she would be stepping down, ending a nine-year tenure at the agency.

She made the announcement at the FCC's open meeting on Tuesday, which Clyburn said would be her last as a commissioner.

Clyburn has been a fierce advocate of the FCC's net neutrality rules, internet subsidies for low-income families and expanding broadband access underserved areas.

In 2013, she became the first woman to chair the commission when President Obama tapped her to fill the seat while Chairman Tom Wheeler was awaiting confirmation from the Senate.

She's been at odds with Ajit Pai throughout his term as chairman over his deregulatory agenda. Still, Clyburn was widely praised from all sides for her record over the past nine years.

"I have enjoyed working with her and, even when we have not seen eye-to-eye on policy, I have always held her candor and thoughtfulness in the highest regard," Pai said in a statement. "She's been a wonderful colleague and friend. I wish her nothing but the best and sincerely thank her for her service."

 

Here are some other reactions from the communications world:

Dem FCC Commissioner Jessica Rosenworcel: "It has been an honor to work alongside her to put consumers first and bring connectivity to those at greatest risk of being left behind--urban, rural, and everywhere in between. I am proud to have worked together with her to support net neutrality and grateful to have been her partner in her unwavering work to remedy the grave injustice of exorbitant prison phone rates."

Sen. Ed Markey (D-Mass.): "Mignon is a voice for the voiceless, always defending the most vulnerable in our society to ensure they are protected against the special interests. Her commitment to defending net neutrality, protecting the Lifeline program, lowering prison phone rates, and so many other critical consumer protection programs has benefited millions of American families. I thank her for her service, and I wish her the best of success in her next endeavor."

AT&T vice president Joan Marsh: "Since joining the FCC nearly a decade ago, Commissioner Clyburn has demonstrated an abiding and admirable commitment to public service. She leaves a tremendous legacy at the Commission of helping Americans most in need and bringing a voice for those who are often overlooked. We wish her all the best in her new endeavors."

Public Knowledge president Gene Kimmelman: "Mignon Clyburn used her passion for justice and compassion for the underserved to demonstrate the best of what an FCC Commissioner can offer the American people. She set the highest standard of public service and hopefully others will follow in her footsteps to further the public interest."

 

What's next? She did not reveal what she plans to do after stepping down, but some have speculated that she'll pursue a political career. Her father, Rep. Jim Clyburn (D-S.C.), has been in the House for 25 years and is currently serving as Assistant Minority Leader.

Replacement talk: According to a Democratic Hill aide, Senate Minority Leader Charles Schumer (D-N.Y.) has proposed FCC Enforcement Bureau official Geoffrey Starks to be Clyburn's successor. The White House, though, has not made a formal nomination yet.

Just the latest Dem exit: The Clyburn news came just one day after Terrell McSweeny, the sole Democrat at the Federal Trade Commission, announced her own resignation, effective at the end of the month. Clyburn and McSweeny had been in lockstep on issues like net neutrality and privacy throughout their tenures as minority commissioners in the Trump era.

 

ALSO AT THE FCC TODAY: The agency proposed a new rule that would stop government programs from using FCC funds to buy equipment and services from countries that pose cybersecurity risks to the United States.

Who's the target? The agency did not specify which countries may pose a threat, however, many expect Chinese companies to be in the FCC's crosshairs. Both the administration and Congress have targeted Chinese telecommunications firms, phone makers and others in recent months.

 

Welcome to Overnight Tech! Please send your tips, comments and montages of James Harden breaking ankles 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.

 

FIGHT OVER FAST LANES: Democrats and Republicans on the House Commerce Committee clashed on Tuesday over paid prioritization -- a practice in which internet service providers charge websites for preferential treatment.

The 2015 net neutrality rules, which were repealed by the FCC in December, banned the practice, and now Republicans want to replace the rules with legislation that would carve out a loophole for fast lanes.

One one side: Democrats have blasted the idea, saying that it would allow companies like Verizon and Comcast to define who wins on the internet marketplace.

"Where there was once agreement on a prohibition on fast lanes, some now want to add loopholes to net neutrality," Rep. Frank Pallone Jr. (D-N.J.) said.

"The reasoning is convoluted and confusing -- they argue that somehow allowing broadband providers to charge small companies extra for internet fast lanes is good for small business," Pallone continued. "But that makes no sense and no one is buying it."

But Republicans insist there are valid reasons to allow paid prioritization.

"In a basic sense, prioritization has nothing to do with traffic speed, but rather it's putting certain bits over others to ensure that all packets arrive at their destination on time," Rep. Greg Walden (R-Ore.) said at the hearing. "A complete ban on prioritization would not permit this, and would not allow some services and applications to operate smoothly."

The politics: Democrats are unlikely to compromise on net neutrality while the FCC's repeal vote is being challenged in court. They're also pushing longshot legislation that would nullify the vote and keep the rules intact, a proposal that they see as promising political upside in the midst of an election year.

 

TECH FIRMS' PLEDGE NOT TO AID GOVERNMENT CYBERATTACKS: Thirty-four major tech firms signed a pledge not to help governments conduct cyberattacks.

Microsoft, Oracle and Facebook were among the companies that signed on to the Cybersecurity Tech Accord.

"The devastating attacks from the past year demonstrate that cybersecurity is not just about what any single company can do but also about what we can all do together," said Microsoft president Brad Smith. "This tech sector accord will help us take a principled path toward more effective steps to work together and defend customers around the world."

Hold on... Notably absent from the accord are Google, Amazon and Apple.

 

SCOTUS THROWS OUT MICROSOFT CASE: The Supreme Court ended the showdown between the Justice Department and Microsoft today in what was once seen as a landmark case on data storage.

Both sides had argued that the case was rendered moot after Congress passed the CLOUD Act in its spending bill last month, allowing law enforcement officials to request data stored overseas.

"The way this case has played out shows exactly why the Second Circuit was correct to hold that the Stored Communications Act did not yet reach communications stored in other countries: Only Congress could 'create nuanced rules' like those in the CLOUD Act that properly bring the SCA into the 21st century," said attorneys for Microsoft.

 

TWITTER PROBLEMS? Many users reported difficulties getting on Twitter earlier today, and while the company said the problem had been fixed, Twitter spokespeople wouldn't offer any other details.

"Some users may have experienced problems sending and viewing Tweets earlier today," the company tweeted. "This issue is now resolved."

 

TAX DAY TECH TROUBLE: The Internal Revenue Service reported that its tax-filing site was experiencing technical difficulties today, just hours ahead of the midnight deadline for Americans to submit their taxes.

"On my way over here this morning, I was told a number of systems are unavailable at the moment," IRS Acting Commissioner David Kautter said at a House Oversight and Government Reform Committee hearing on Tuesday. "We are working to resolve the issue and taxpayers should continue to file their returns as they normally would."

Lawmakers urged the IRS not to penalize taxpayers who are unable to file before tonight's deadline.

Update: Treasury Secretary Steven Mnuchin said taxpayers can ask for an extension because of the tech issues, according to the AP.

 

CAMBRIDGE COIN?: Cambridge Analytica reportedly planned to raise funding through an initial coin offering (ICO) before it became the subject of controversy for improperly obtaining the data of 87 million Facebook users.

The British research firm, which also worked for the Trump campaign, planned to conduct an ICO to raise capital -- a tactic used by cryptocurrency-based projects for funding, according to The New York Times.

What they wanted to do with it: The digital token was intended to help individuals store and sell their personal data, a former employee told the Times.

The report will only raise eyebrows about the company, whose business model and practices are already under fire. ICOs aren't inherently bad but have increasingly become a vehicle for scams in the last year and are increasingly attracting the attention of regulators.

 

NY BITCOIN PROBE: New York's top cop is launching an inquiry into cryptocurrency exchanges amid rising concern about the nascent digital markets.

State Attorney General Eric Schneiderman (D) on Tuesday announced the "Virtual Markets Integrity Initiative," an inquiry seeking to examine the "policies and practices of platforms" that trade in cryptocurrencies such as bitcoin.

The initiative aims to protect cryptocurrency investors and consumers by boosting the transparency and accountability of the digital trading platforms.

Schneiderman is asking companies for more information on their practices.

 

FACEBOOK INVESTOR WANTS TOUGHER OVERSIGHT: Trillium Asset Management is urging other Facebook shareholders to vote to install a risk oversight committee in response to a string of controversies at the social media giant.

"The simple fact that so many different and severe controversies keep occurring leads us to believe the underlying issue remains unsolved and a different form of oversight is needed," the fund wrote in a letter to the company's shareholders.

"Facebook's executive team can spend countless hours providing technical solutions to controversies about privacy or mental health or illegal activity, but without additional guidance and strategic vision about the company's role in society and the risks it creates for people and communities, as well as for itself, we believe it will never truly get past these issues," it continues.

 

LONGREAD OF THE DAY: Racked published an interesting essay on how algorithms are influencing our style and taste as more companies use artificial intelligence-enabled services.

From the author, Kyle Chayka: "We don't calculate or measure if something is tasteful to us; we simply feel it. Displacing the judgment of taste partly to algorithms, as in the Amazon Echo Look, robs us of some of that humanity."

 

ON TAP:

The Senate Commerce Committee will hold a hearing on abusive robocalls at 10 a.m.

The House Oversight subcommittee on IT will hold a hearing on artificial intelligence at 2 p.m.

 

IN CASE YOU MISSED IT:

The Verge: PornHub is now accepting cryptocurrency

The New York Times: Huawei shifts gears after failing to break into U.S. market

Op-ed: Russian cyber attack should be met by counter-strikes

The Wall Street Journal: U.S. tech companies caught in trade war crossfire

 
 
 
 
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