A government appeal of a court decision approving AT&T’s acquisition of Tim Warner is a joke.  But maybe it is not surprising when you consider what AT&T management has been up to.

AT&T used to be a power house in Washington.  It now can’t seem to lobby it’s way out of a brown paper bag.

AT&T’s longtime chief representative in Washington—Jim Ciccone—was brilliant.  AT&T’s managers and investors have no idea how much Ciccone accomplished on their behalf. His successor—Pat Quinn—was a brilliant regulatory lawyer.  Quinn was absolutely the best person that could possibly represent you before the Federal Communications Commission.  Unfortunately, Quinn couldn’t see the big picture, and he flamed out as Ciccone’s succesor.

I have no idea who represents AT&T in Washington at this time.  As a shareholder, I believe AT&T management is negligent.

It is no surprise to me that the Department of Justice is appealing the court decision approving the AT&T/Time Warner merger—because AT&T is AWOL in Washington.

P.S. I want to credit my former boss, former Senator Bob Packwood of Oregon–chairman of the Senate Commerce Committee in the early 80’s–for the brown paper bag metaphor.  He didn’t apply it to AT&T, but I think it fits now.

In cleaning up my desk this weekend, I chanced upon an old notebook and like many times before I began to transcribe the notes. It was short, so I got to the end within a couple of minutes. The last page was scribbled with the German term Öffentlichkeit (public sphere), a couple sentences on Hannah Arendt, and a paragraph about Norberto Bobbio’s view of public and private.

Then I remembered. Yep. This is the missing notebook from a class on democracy in the digital age.   

Serendipitously, a couple of hours later, William Freeland alerted me to Franklin Foer’s newest piece in The Atlantic titled “The Death of the Public Square.” Foer is the author of “World Without Mind: The Existential Threat of Big Tech,” and if you want a good take on that book, check out Adam Thierer’s review in Reason.

Much like the book, this Atlantic piece wades into techno ruin porn but focuses instead on the public sphere: Continue reading →

I’ve been working on a new book that explores the rise of evasive entrepreneurialism and technological civil disobedience in our modern world. Following the publication of my last book, Permissionless Innovation: The Continuing Case for Comprehensive Technological Freedom, people started bringing examples of evasive entrepreneurialism and technological civil disobedience to my attention and asked how they were related to the concept of permissionless innovation. As I started exploring and cataloging these cases studies, I realized I could probably write an entire book about these developments and their consequences.

Hopefully that book will be wrapped up shortly. In the meantime, I am going to start rolling out some short essays based on content from the book. To begin, I will state the general purpose of the book and define the key concepts discussed therein. In coming weeks and months, I’ll build on these themes, explain why they are on the rise, explore the effect they are having on society and technological governance efforts, and more fully develop some relevant case studies. Continue reading →

In preparation for a Federalist Society teleforum call that I participated in today about the compliance costs of the EU’s General Data Protection Regulation (GDPR), I gathered together some helpful recent articles on the topic and put together some talking points. I thought I would post them here and try to update this list in coming months as I find new material. (My thanks to Andrea O’Sullivan for a major assist on coming up with all this.)

Key Points:

  • GDPR is no free lunch; compliance is very costly
      • All regulation entails trade-offs, no matter how well-intentioned rules are
      • $7.8 billion estimated compliance cost for U.S. firms already
      • Punitive fees can range from €20 million to 4 percent of global firm revenue
      • Vagueness of language leads to considerable regulatory uncertainty — no one knows what “compliance” looks like
      • Even EU member states do not know what compliance looks like: 17 of 24 regulatory bodies polled by Reuters said they were unprepared for GDPR
  • GDPR will hurt competition & innovation; favors big players over small
      • Google, Facebook & others beefing up compliance departments. (“ EU official, Vera Jourova: “They have the money, an army of lawyers, an army of technicians and so on.”)
      • Smaller firms exiting or dumping data that could be used to provide better, more tailored services
      • PwC survey found that 88% of companies surveyed spent more than $1 million on GDPR preparations, and 40% more than $10 million.
      • Before GDPR, half of all EU ad spend went to Google. The first day after it took effect, an astounding 95 percent went to Google.
      • In essence, with the GDPR, the EU is surrendering on the idea of competition being possible going forward
      • The law will actually benefit the same big companies that the EU has been going after on antitrust grounds. Meanwhile, the smaller innovators and innovations will suffer.

Continue reading →

A group of lawmakers is asking the Federal Communications Commission to maintain the agency’s 27 year old “Kid Vid” rules in their “current form,” rather than open a proceeding to evaluate whether the rules can be improved or are even still necessary.

The rules were enacted by the FCC pursuant to the Children’s’ Television Act of 1990—in the analog era, when digital technologies were just starting to be deployed, and the same year that initial steps were being taken to privatize the Internet and open it for commercial use.  A lot has changed since the Act was passed. Continue reading →

The Supreme Court is winding down for the year and last week put out a much awaited decision in Ohio v. American Express. Some have rung the alarm with this case, but I think caution is worthwhile. In short, the Court’s analysis wasn’t expansive like some have claimed, but incomplete. There are a lot of important details to this case and the guideposts it has provided will likely be fought over in future litigation over platform regulation. To narrow the scope of this post, I am going to focus on the market definition question and the issue of two-sided platforms in light of the developments in the industrial organization (IO) literature in the past two decades. Continue reading →

Voices from all over the political and professional spectrum have been clamoring for tech companies to be broken up. Tech investor Roger McNamee, machine learning pioneer Yoshua BengioNYU professor Scott Galloway, and even Marco Rubio’s 2016 presidential digital director have all suggested that tech companies should be forcibly separated. So, I took a look at some of the past efforts in a new survey of corporate breakups and found that they really weren’t all that effective at creating competitive markets.

Although many consider Standard Oil and AT&T as classic cases, I think United States v. American Tobacco Company is far more instructive.  Continue reading →

On Friday, the Supreme Court ruled on Carpenter v. United States, a case involving the cell-site location information. In the 5 to 4 decision, the Court declared that “The Government’s acquisition of Carpenter’s cell-site records was a Fourth Amendment search.” What follows below is a roundup of reactions and comments to the decision.  Continue reading →

Yesterday, the Supreme Court dropped a decision in Wayfair v. South Dakota, a case on the issue of online sales tax. As always, the holding is key: “Because the physical presence rule of Quill is unsound and incorrect, Quill Corp. v. North Dakota, 504 U. S. 298, and National Bellas Hess, Inc. v. Department of Revenue of Ill., 386 U. S. 753, are overruled.” What follows below is a roundup of reactions and comments to the decision. Continue reading →

Two years ago, ProPublica initiated a conversation over the use of risk assessment algorithms when they concluded that a widely used “score proved remarkably unreliable in forecasting violent crime” in Florida. Their examination of the racial disparities in scoring has been cited countless times, often as a proxy for the power of automation and algorithms in daily life. Indeed, as the authors concluded, these scores are “part of a part of a larger examination of the powerful, largely hidden effect of algorithms in American life.”

As this examination continues, two precepts are worth keeping in mind. First, the social significance of algorithms needs to be considered, not just their internal model significance. While the accuracy of algorithms are important, more emphasis should be placed on how they are used within institutional settings. And second, fairness is not a single idea. Mandates for certain kinds of fairness could come at the expense of others forms of fairness. As always, policymakers need to be cognizant of the trade offs.   Continue reading →