[UPDATE Feb. 2012: This little essay eventually led to an 80-page working paper, “Technopanics, Threat Inflation, and the Danger of an Information Technology Precautionary Principle.”]

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In this essay, I will suggest that (1) while “moral panics” and “techno-panics” are nothing new, their cycles seem to be accelerating as new communications and information networks and platforms proliferate; (2) new panics often “crowd-out” or displace old ones; and (3) the current scare over online privacy and “tracking” is just the latest episode in this ongoing cycle.

What Counts as a “Techno-Panic”?

First, let’s step back and define our terms. Christopher Ferguson, a professor at Texas A&M’s Department of Behavioral, Applied Sciences and Criminal Justice, offers the following definition: “A moral panic occurs when a segment of society believes that the behavior or moral choices of others within that society poses a significant risk to the society as a whole.” By extension, a “techno-panic” is simply a moral panic that centers around societal fears about a specific contemporary technology (or technological activity) instead of merely the content flowing over that technology or medium. In her brilliant 2008 essay on “The MySpace Moral Panic,” Alice Marwick noted: Continue reading →

ICANN has posted an official “GAC Indicative Scorecard” in advance of the Feb. 28 showdown in Brussels between the Governmental Advisory Committee (GAC) and the ICANN Board. The “scorecard” is intended to identify the areas where the small number of governmental officials who participate in GAC differ from the positions developed by ICANN’s open policy development process. The scorecard constitutes a not-so subtle threat that ICANN should throw out its staff- and community-developed policies and make them conform to the GAC’s preferences. Amusingly, the so-called GAC position follows almost verbatim the text submitted as the “US position” back in January. It’s clear that the US calls the shots in GAC and that other governments, including the EU, are cast in the role of making minor modifications to U.S. initiatives.

There is one interesting modification, however. The new GAC scorecard still allows GAC to conduct an initial review of all new top level domain applications and still allows any GAC member to object to any string “for any reason.” But GAC has been publicly shamed into pulling back from the U.S. government’s recommendation that a single GAC objection, if not overruled by other governments, would kill the application. Instead, the GAC as a whole will “consider” any objection and develop written “advice” that will be forwarded to the Board. This would put such advice in the framework of ICANN’s bylaws, and thus the advice would not be binding on the board.

While it is heartening that public pressure has forced the governments to pull back from their more outrageous demands, the resulting procedure is still arbitrary and an unacceptable incursion on free expression and free markets. For a more complete analysis, see the IGP blog.

Congressman Marsha Blackburn (R-TN) will kick off this event with remarks on the Net Neutrality order before TechFreedom Adjunct Fellow Larry Downes presents his analysis of the FCC’s recent Open Internet Report & Order (which he recently delivered as testimony to the House Judiciary Committee’s Subcommittee on Intellectual Property, Competition & the Internet). A panel of leading experts will offer their reactions.

What: “Decoding the FCC’s Net Neutrality Order” — A TechFreedom Capitol Hill briefing
When: Tuesday, March 1
3:00 – 5:00 p.m.
Where: Top of the Hill Banquet & Conference Center (Reserve Officers Association)
One Constitution Ave, NE
Washington DC 20002
Who:

Congressman Marsha Blackburn (R-TN)
Larry Downes, TechFreedom
Markham Erickson, Open Internet Coalition
Dave Farber, Carnegie Mellon University
Harold Feld, Public Knowledge
Link Hoewing, Verizon
Randy May, Free State Foundation
Eliza Krigman, Politico (moderator)

Please join us after this event, at 5:30, for a reception just across the street co-sponsored by TechFreedom and the Institute for Policy Innovation in honor of IPI’s Third Annual Communications Summit, which will take place the next day. The reception runs untill 7:30 p.m. in the Capitol Visitor Center, Congressional Meeting Room South 217 (CVC 217).

Register here today!

Following up on my Congressional testimony last week, I’ve written two articles on how the House and Senate are moving forward with plans to undo the FCC’s December 23,2010 “Open Internet” order, aka net neutrality. For my inaugural post for Forbes, I write about the experience of being a witness before the House Judiciary Committee’s Subcommittee on Intellectual Property, Competition and the Internet, and provide some background on how the FCC found itself backed into a corner that led to the unpopular (on both sides) new rules. See “Deep in the Net Neutrality Trenches.”

On CNET this morning, I review in detail the steps taken last week by Congress. These include two hearings, one featuring all five FCC Commissioners. After the hearings, the House approved an amendment to the on-going budget negotiations that would deny the agency any funding to implement or enforce its rules. Later, both the House and Senate issued a Joint Resolution of Disapproval, which, if passed, would nullify the rule-making and deny the FCC future authority to try again. Continue reading →

Tomorrow at noon Facebook will be hosting one of its [“Facebook DC Live” events featuring William Powers](http://www.facebook.com/event.php?eid=168939799819747), author of *[Hamlet’s Blackberry: A Practical Philosophy for Building a Good Life](http://www.amazon.com/gp/product/0061687162?ie=UTF8&tag=jerrybritocom&linkCode=as2&camp=1789&creative=390957&creativeASIN=0061687162)*. I interviewed Powers on [the Surprisingly Free podcast](http://surprisinglyfree.com/2010/10/26/william-powers/) last year about his book.

What I like so much about Powers and his books is that he gracefully tackles what is no doubt a fact: that like all new technologies the Internet comes not just with benefits, but with costs as well. In the Internet’s case the costs that most folks have identified have to do with “what it’s doing to our brains” and attention spans. Unlike other authors on the same topic that I’ve read and interviewed, like Nick Carr, Jaron Lanier, Susan Maushart, and Elias Aboujaoude, Powers doesn’t overplay his concern or sound alarm bells of doom. Instead, he gives a very upbeat account of how great minds throughout history have dealt with technological change.

The punchline: be mindful of your action, and take a break once in a while. Wonderful advice wrapped in great stories and good philosophy; cyber-doom need not apply. So, check him out on the live stream tomorrow and you’ll be able to chat and ask questions.

FTC Chairman says will probe Apple in-app purchases for marketing practices: http://wapo.st/fX3uWnless than a minute ago via TweetDeck


*The Washington Post’s* [Cecilia Kang](http://voices.washingtonpost.com/posttech/2011/02/ftc_chairman_to_probe_apple_ip.html) reports that the FTC will probe Apple for in-app purchases marketing practices. According to Kang,

>FTC Chairman Jon Leibowitz wrote in a letter to Rep. Ed Markey (D-Mass.) that the practice of “in-app purchases” for certain applications on Apple iPhones, iPads and iPods raised concerns that consumers may not fully understand the ramifications of those charges. *The Washington Post* wrote about hefty charges amassed by children using Apple device games that public interest groups said should not be included in software geared for children. Some parents said their children didn’t understand the difference between real and pretend purchases for items such as $99 barrels of Smurfberries on the Capcom Interactive game Smurfs Village.

I’ll skip the question of whether it’s the proper role of the federal government to be a surrogate parent to children given iPhones by their real parents. Instead I’ll simply say that I don’t know how much easier we can expect Apple to make it for parents to supervise their children.

– **Passwords** All purchases on iOS devices require the user to enter a password before it can be completed. Don’t give your child the password and you don’t have to worry about charges.

– **Allowances** If you do want to allow your child to make purchases, but what to set some limits, Apple makes it easy to create an [iTunes allowance](http://support.apple.com/kb/ht2105) account that allows a parent to specify an amount that is added to a child’s account each month. Once the child uses the amount, he can’t spend any more.

What more do we want Apple to do?

On this week’s podcast, Elias Aboujaoude, a psychiatrist and author based at Stanford University, discusses his new book, Virtually You: The Dangerous Powers of the E-Personality. Aboujaoude says that the internet has positive effects, but he’s worried that most of our day-to-day online activities are negatively affecting us. He explains how, in his view, behaviors like compulsive online shopping and angry commenting on blogs is seeping into our offline lives, with profound negative effects. He also talks about why he thinks the internet is different from previous technologies that caused techno-fear, why he thinks it’s often difficult for online norms to develop, and what he thinks proper roles are for medicine, psychiatry, and government in the online sphere.

Related Links

To keep the conversation around this episode in one place, we’d like to ask you to comment at the web page for this episode on Surprisingly Free. Also, why not subscribe to the podcast on iTunes?

To believe some of the worrywarts around Washington, we find ourselves in the midst of a miserable mobile marketplace experience. Regulatory advocates like New America Foundation, Free Press, Public Knowledge and others routinely claim that the sky is falling on consumers and that far-reaching regulation of the wireless sector is needed to save the day.

I hope those folks are still willing to listen to facts, becuase those facts tell a very different story. Specifically, I invite critics to flip through the latest presentation by Internet market watchers Mary Meeker and Matt Murphy of Kleiner Perkins Caufield & Byers on “Top Mobile Internet Trends” and then explain to me how we can label this marketplace anything other than what it really is: One of the greatest capitalist success stories of modern times. Just about every metric illustrates the explosive growth of technological innovation in the U.S. mobile arena. I’ve embedded the entire slideshow down below, but two particular slides deserve to be showcased.

Continue reading →

There has been much hand wringing about Apple’s new in-app subscription system for publishers and even [one report](http://online.wsj.com/article/SB10001424052748704657704576150350669475800.html) that antitrust enforcers have begun looking into the matter.

The purpose of the antitrust laws is to protect consumers, not companies, so the simple fact that Apple will take a 30% cut from publishers who want to offer subscriptions on iOS devices should not be enough to trigger scrutiny. So, my guess at what a theory of consumer harm against Apple might be is this: Apple not only takes a 30% cut of any subscription purchased in-app on an iOS device, it also requires publishers to offer as low a price on iOS as they offer anywhere else. Therefore, a case could be made that a publisher faced with Apple’s 30% fee (and unable to simply raise prices by 30% just on Apple’s devices) might raise prices on all platforms enough to cover Apple’s cut. So, assuming market power of course, Apple’s new policy could affect all digital subscription pricing.

Yet it’s hard to talk about market power in such a nascent sector. Digital subscriptions didn’t exist 5 years ago, and they do now in large part thanks to Apple. The right market structure is sorting itself out right now and yes, Apple does seem to have a well-earned lead as the innovator in the space. But if the original Mac taught us anything, is that a lead in a nascent sector is no guarantee of monopoly and regulators would be creating serious disincentives to innovation if they meddle.

Digital publishing is very much a contestable market. I hardly need to point out that the day after Apple’s announcement, [Google made public](http://news.cnet.com/8301-17938_105-20032217-1.html) its own very competitive subscription service. And while the iPad is ahead of the game right now, Android tablets are only now beginning to hit the market. If [declining iPhone market share](http://thenextweb.com/apple/2010/02/01/iphone-shedding-market-share-increasingly-competitive-market/) is any indication, Android will nip at Apple’s heels in the tablet space as well. And let’s not forget other formidable (and somewhat-formidable) competitors in the likes of HP’s WebOS, Microsoft-Nokia, and RIM.

Moreover, while the consumer harm is speculative, the potential consumer benefits of Apple’s subscription service are pretty clear:

– **Ease of Use & Security:** Apple’s app store is a tremendous innovation if nothing else because it creates a simple payment system consumers trust. iPad users will tell you they much prefer one-click subscriptions managed through Apple than having to create many accounts with disparate publishers, which incidentally improves security.
– **Privacy:** One thing that sets Google’s offering apart from Apple’s is that they will share with publishers information about subscribers. Apple, on the other hand, gives users the choice of sharing information with publishers, and then it’s only limited information. This should please privacy conscious consumers.
– **Subsidized Devices:** As a [recently viral article in Wired](http://www.wired.com/gadgetlab/2011/02/ipad-price/) suggests, the reason Apple is able to offer the iPad entry price of $500 (which rivals are having a hard time meeting) is that Apple is a vertically integrated company. This means that the 30% from subscriptions potentially subsidizes the iPad’s low price, thus benefitting consumers.

For better or worse, my first post here is going to be a rather urgent call to action. I’d like to encourage everyone who reads this blog to register their support for this petition. Entitled, “Say no to the GAC veto,” it expresses opposition to a shocking and dangerous turn in U.S. policy toward the global domain name system. It is a change that would reverse more than a decade of commitment to a transnational, bottom-up, civil society-led approach to governance of Internet identifiers, in favor of a top-down policy making regime dominated by national governments.

If the U.S. Commerce Department has its way, not only would national governments call the shots regarding what new domains could exist and what ideas and words they could and could not use, but they would be empowered to do so without any constraint or guidance from law, treaties or constitutions. Our own U.S. Commerce Department wants to let any government in the world censor a top level domain proposal “for any reason.” A government or two could object simply because they don’t like the person behind it, the ideas it espouses or they are offended by the name, and make these objections fatal. This kind of direct state control over content-related matters sets an ominous precedent for the future of Internet governance.

On February 28 and March 1, ICANN and its Governmental Advisory Committee will meet in Brussels to negotiate over ICANN’s program to add new top level domain names to the root. The U.S. commerce Department has chosen to make this meeting a showdown, in which the so-called Governmental Advisory Committee (GAC) will demand that the organization re-write and re-do policies and procedures ICANN and its stakeholder groups have been laboring to achieve agreement on for the past six years. The GAC veto, assailed by our petition, is only the most objectionable feature of a long list of bad ideas our Commerce Department is dragging into the consultation. We need to make a strong showing to ensure that ICANN has the backbone to resist these pressures

For those concerned about the role of the state in communications and information, I can’t think of a better, clearer flashpoint for focusing your efforts. A great deal of the Internet’s innovation and revolutionary character came from the fact that it escaped control of national states and began to evolve new, transnational forms of governance. As governments wake up to the power and potential of the Internet, they have increasingly sought to assert traditional forms of control.

The relationship between national governments and ICANN, which came into being during the Clinton administration as an attempt to “privatize” and globalize the policy making and coordination of the Internet’s domain name system, has always been a fraught one. Whatever its flaws (and they are many), ICANN at least gives us a globalized governance regime that is rooted in the Internet’s technical commnunity and users, and one step removed from the miasma of national governments and intergovernmental organizations. The GAC was initially just an afterthought tacked on to ICANN’s structure to appease the European Union. It was – and is still supposed to be – purely advisory in function. Initially it was conceived as simply providing ICANN with information about the way its policies interacted with national policies.

Those of you with long memories may be feeling a sense of deja vu. Didn’t we think we were settling the issue of an intergovernmental takeover of ICANN back in 2005, during the World Summit on the Information Society? Wasn’t it the U.S. government who went into that summit playing to fears of a “UN takeover of the Internet” and swearing that it was protecting the Internet from “burdensome intergovernmental oversight and control”? Wouldn’t most Americans be surprised to learn that the Commerce Department is now using ICANN’s Governmental Advisory Committee to reassert intergovernmental control over what kind of new web sites can be created? Ironically, the US has become the most formidable world advocate of burdensome government oversight and control in Internet governance. And it has done so without any public consultation or legal authority.

Please spread the word about this petition and use whatever channels you have to isolate the Commerce Department’s illegitimate incursions on constitutional free expression guarantees.