| NET NEUTRALITY SUPPORTERS GET THEIR DAY IN COURT: Net neutrality supporters will get their day in court this week as they challenge the Federal Communications Commission's (FCC) repeal of the popular Obama-era internet rules. A panel of federal appeals court judges will hear oral arguments Friday in a lawsuit challenging the FCC's deregulation of the broadband industry. The court date comes more than a year after the agency voted to roll back the rules requiring internet service providers to treat all web traffic equally. Approved by the FCC under the Obama administration in 2015, net neutrality regulations prohibited companies like Verizon and Comcast from blocking or throttling content and from charging websites for faster speeds. Shortly after the commission voted to roll back the rules in December 2017, a coalition of consumer advocacy groups, internet companies and Democratic state attorneys general sued the agency, asking the D.C. Circuit Court of Appeals to vacate the repeal and reinstate the 2015 rules. They argued that the rules ensured a free and open internet and prevented broadband companies from discriminating against certain content or giving certain websites preferential treatment. Read more on the court fight here. HOUSE DEMS TARGET NET NEUTRALITY REPEAL: A House panel will hold a hearing next week on the Federal Communications Commission's (FCC) repeal of 2015 net neutrality rules, top Democrats announced Thursday. The Feb. 7 hearing will be the first for the House Energy and Commerce Committee's panel on technology under its new Democratic leadership. "An open internet has been vital to the growth of the internet, especially for consumers, entrepreneurs and free speech," Reps. Frank Pallone Jr. (D-N.J.) and Mike Doyle (D-Pa.), the respective chairs of the committee and subcommittee, said in a joint statement. "The FCC's repeal of these essential protections-known as net neutrality-has been a disaster for consumers," the Democrats said. "This hearing will be an important opportunity to hear what the repeal of net neutrality means for the American people, and what has happened since the FCC's repeal went into effect." More on the hearing here. INFLUENCERS BEWARE: The New York state attorney general's office on Wednesday announced a $50,000 settlement with a company that made millions of dollars selling fake followers and engagement to social media users seeking to boost their online profiles. The settlement between New York Attorney General Letitia James (D) and now-defunct social media company Devumi is one of the first legal actions in the U.S. cracking down on the practice of selling bot followers and fake "likes." It is the first finding by a law enforcement agency that it is illegal to sell fake social media engagement, the New York attorney general's office said in a statement. "Bots and other fake accounts have been running rampant on social media platforms, often stealing real people's identities to carry out fraud," James said in a statement. "As people and companies like Devumi continue to make a quick buck by lying to honest Americans, my office will continue to find and stop anyone who sells online deception. Devumi, which operated from 2015 to 2017, sold fake followers, "likes," views and influencer endorsements to customers on Twitter, Facebook, YouTube, SoundCloud and more. The company's customers, numbering roughly in the hundreds of thousands, included actors, academics, professional athletes, adult-film stars, models and media figures, according to the settlement. Devumi earned revenues of around $15 million during its short-lived existence, the settlement says. The attorney general's office did not address whether it was legal for customers to buy the fake followers and engagement. Read more here.
U.S., CHINA LEAD THE PACK ON AI: A United Nations panel said in a report published Thursday that the U.S. and China are out in front of global competitors in the study and development of artificial intelligence.
Reuters reported that the U.N. World Intellectual Property Organization (WIPO) report found U.S. firms IBM and Microsoft had the highest number of patents related to artificial intelligence, with 8,920 and 5,930, respectively. China is home to 17 of the top 20 academic institutions involving patenting artificial intelligence, Reuters reported. "The U.S. and China obviously have stolen a lead. They're out in front in this area, in terms of numbers of applications, and in scientific publications," WIPO Director-General Francis Gurry told reporters, according to Reuters. The world's two largest economies have been locked in an escalating trade battle in recent months, triggered by the Trump administration imposing tariffs on Chinese imports. Beijing responded with duties on U.S. goods, and the two sides have engaged in tit-for-tat actions ever since. The Trump administration has additionally accused China of stealing U.S. intellectual property, further complicating the dispute. The president is set to meet Thursday with the vice premier of China, though Trump tweeted on Thursday morning that a final trade deal can only be reached after he meets with Chinese President Xi Jinping. More on the report here. UBER SAYS 'BYE' TO BARCELONA: Uber and fellow ride-hailing company Cabify are set to stop their services in Barcelona on Friday in response to the city tightening its regulations to appease protesting taxi drivers. A new law requires ride-hailing app users to contract services 15 minutes in advance of trips. It also bans drivers from circulating the city between rides, having to be parked somewhere while waiting for their next pick up. The city in Spain adopted the new restrictions after days of protests by taxi drivers that included blocking major roads and trashing cars that worked for the apps. "The new restrictions approved by the Catalan government leave us with no choice but to suspend UberX as we assess our future in Barcelona," a spokesperson for Uber told The Hill on Thursday. "We are committed to being a long term partner to Spanish cities and hope to work with the Catalan government and the city council on fair regulation for all." The company said that UberEats will continue to operate in the city. Momentum to restrict ride-sharing apps in Europe has been building since the European Court of Justice ruled in 2017 that the services should be regulated like taxi services rather than technology companies. More on the decision here. MORE RIDE-HAILING NEWS... LYFT SUES OVER MINIMUM WAGE LAW: Ride-hailing service Lyft is suing the city of New York to block its new driver minimum wage law, saying the rule will punish Lyft for being a smaller company than its main competitor Uber. Lyft, in a petition filed with the New York County Supreme Court, is asking the New York City Taxi and Limousine Commission to "vacate" its driver minimum wage law, which is set to go into effect on Friday. The new law, which passed in December, will require ride-hailing app drivers to make at least $17.22 per hour after expenses. The New York City Taxi and Limousine Commission stated goal was to increase average pay for the tens of thousands of drivers by about $9,600 per year without disrupting passengers' experiences. The commission was seeking to protect drivers from being underpaid by their companies after reports indicated ride-hailing app drivers were being paid significantly less than minimum wage. The new law is based on a formula that takes into account the amount drivers are paid per mile and per minute, also known as a "utilization rate." Lyft said in a blog post that it is that rule, which rewards drivers for taking more customers, that will leave Lyft at a disadvantage compared to the significantly larger Uber. The smaller ride-hailing app Juno also filed its own lawsuit contesting the new law on Thursday, making a similar argument, according to multiple reports. Ride-hailing app drivers union the Independent Drivers Guild in a statement called the lawsuit's claims "laughable." More on the lawsuit here.
AN OP-ED TO CHEW ON: Taming the fake web starts in 2019. A LIGHTER CLICK: Oh hey big brother... NOTABLE LINKS FROM AROUND THE WEB: Hackers are sharing stolen data like usernames and passwords around the internet. (Wired) Intel names new CEO. (CNBC) Uber is expanding further into public transit in Denver. (The Verge) Amazon reports third record profit in a row. (The Wall Street Journal) | 
