Platform Access

How Gigi Sohn’s Nomination to the FCC Went From Concerning—To Fully Corrupt

Today’s political arena tolerates hypocrisies with a greater degree of acceptance than many would like, though the public absolutely draws a line at shady backroom deal-making.

This is why we ought to be aghast at the process surrounding Gigi Sohn’s nomination to the FCC. Recently, Sohn announced that, if confirmed, she would recuse herself for several years on matters related to retransmission consent or television broadcast copyright. These issues are of great importance to FCC and to broadcasters, and broadcasters were worried about Sohn’s record on them.

Sohn had been in hot water about these matters since late 2021. In November of 2021, the National Association of Broadcasters expressed that while they did “not currently oppose the nomination of Gigi Sohn, we have serious concerns about her involvement as one of three directors of the illegal streaming service Locast.” That streaming service had essentially fleeced the broadcasters by illegally streaming their content for free. Sohn was a board member and supported the activity.

Thereafter, Sohn’s nomination hit choppy waters, and suddenly, she couldn’t be on the wrong side of the broadcasters anymore. Thus, her recent gambit: Recusing herself from big issues pertaining to broadcasters.

Her recent bending-of-the-knee led to this: “NAB appreciates Ms. Sohn’s willingness to seriously consider our issues regarding retransmission consent and broadcast copyright, and to address those concerns in her recusal. We look forward to the Senate moving forward with Ms. Sohn’s confirmation and are eager to work with her and the full complement of commissioners in the very near future.”

From “serious concerns” to “eager”—welcome to rank regulatory corruption in 2022. Here is the bottom line: An embattled nominee for a regulatory position just announced that she would not regulate so that she could comfortably earn her regulatory posting. There is a fitting Latin expression for this, one that doesn’t wear well in the halls of Congress: A quid pro quo.

To put it bluntly, Sohn’s job as an FCC Commissioner would be to regulate the broadcast industry. And yet, at a moment of maximum peril for her nomination, she promised the broadcast industry that she’d be hands-off for a few years.

Set aside the flagrantly unethical nature of this. Consider a more practical problem with Sohn recusing herself on retransmission and copyright issues, a conundrum best articulated by the Wall Street Journal: “These subjects consume a large share of the FCC’s regulatory bandwidth, which means the agency could be deadlocked for good or ill on many issues.”

The decision to press ahead with Sohn’s nomination is a galling dereliction of duty. There are issues of real concern including media ownership, retransmission, and broadcast copyrights that require a fully operational Commission. By giving up her ability to regulate broadcasters on these issues, Sohn has neutered her own position—even before she’s been confirmed. And because she’d have to refrain from voting on these matters, she’s also neutered the FCC.

This is unacceptable. There were already questions swirling about Sohn’s backroom wheeling-and-dealing and her questionable record on minority media ownership, among other worries. But this quid pro quo is simply the last straw. Congress cannot and should not move forward with a nominee for a regulatory position who has abdicated all regulatory authority.

There are certainly other qualified nominees for the FCC post. Perhaps most importantly, any new candidates shouldn’t campaign for the job by saying they won’t do the job. This FCC Commission seat should be filled by a regulator who can actually regulate.

Online Privacy: It’s Time To Demand Executive Accountability

What if we approached online privacy the way we do financial reporting? That’s the solution that Mike Montgomery proposes in his newly published op-ed for Morning Consult.

According to Montgomery, CALinnovates’ executive director, Europe’s General Data Protection Regulation and the upcoming California Consumer Privacy Act are fundamentally flawed, because they ultimately make the consumer responsible for policing privacy. What we need, says Montgomery, is a law — such as the Sarbanes-Oxley Act that arose from the Enron scandal — that holds individual executives’ feet to the flames when privacy is breeched.

Read the full argument here.

As FCC Net Neutrality Rules Expire, Internet Survives — For Now

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“This is not doomsday at all. The internet hasn’t broken today,” said Mike Montgomery, executive director of CALinnovates, in a San Francisco Chronicle piece about the expiration of the Federal Communications Commission’s old net neutrality rules. “Consumers aren’t going to see or feel anything changing in their internet experience.”

But what about the future? Read more about Montgomery and other net neutrality advocates’ concerns here.

A Second Chance At Net Neutrality

“The recent crisis over Facebook and Cambridge Analytica has completely flipped the script in Washington and the demand for comprehensive action to regulate the Big Tech giants creates a rare second chance for Congress to get the issue of internet regulation right,” writes Mike Montgomery in The Houston Chronicle. “Congress doesn’t often get a second chance on major policy issues. But it has one now on net neutrality.”

Read his full column here.

Why The Congressional Review Act Is A Complete Charade

“Nearly every day brings new stories of children being tracked, Russians being indicted, and online-fueled hate exploding into real-world violence – all while the big tech platforms that enable this chaos report record earnings and shrug off Congressional oversight without breaking a sweat,” writes Mike Montgomery for Multichannel News. “The American people are demanding comprehensive action to rein in these giant platforms, protect our privacy and permanently keep cyberspace open and free – with 80% believing the big platforms haven’t done enough to secure their networks. Nearly 60% are concerned the government won’t do enough to solve the problem. Yet, amazingly, the only internet bill on the agenda in Congress is a backward-looking resolution that will actually reduce our privacy protections.”

Here’s why Montgomery calls the Congressional Review Act, which is being billed as a net neutrality-protection measure, “a complete charade.”

 

Net Neutrality Redux: Americans Want Certainty; See Tech Giants and ISPs in Similar Light

Sixty-Two Percent of Americans Are Either Unsure or Believe Tech Companies and ISPs Are about the Same When It Comes to Protecting Privacy

San Francisco, CA, December 11, 2017 – After more than a decade of squabbling over so-called Net Neutrality rules, Americans want the issue settled once and for all to create certainty, according to a new survey by technology advocacy group CALinnovates.

Sixty-one percent of Americans, for example, report that creating regulatory certainty is important for the future of the internet and innovation.

But underlying that desire to settle the issue, according to the survey, is a growing sense that the technology companies driving the net neutrality debate aren’t different from their internet service provider opponents. The survey of 1,116 Americans found that:

  • Only slightly more than 1 in 3 Americans saw a difference between tech companies such as Google and Facebook and ISPs such as Verizon when it came to protecting their privacy. In fact, 62 percent reported that they are about the same or are not sure.
  • When it came to which companies they are more likely to trust, ISPs such as AT&T, Verizon and Comcast (20%) were slightly ahead of tech companies such as Google, Facebook and Twitter (18%). Overall, 50 percent of Americans said they trust or distrust them about equally.
  • And when it came to which of the sectors had the most to gain from net neutrality, it was again even. Sixteen percent of Americans thought tech companies because they want to maintain access as cheaply as possible, while the same amount said ISPs because they don’t want rules imposed on them.

“Americans intuitively understand that this never-ending game of policy pingpong over net neutrality must come to an end so consumers and the tech ecosystem can move on and focus fully on making magic,” said Mike Montgomery, Executive Director of CALinnovates. “With yet another FCC vote ahead, it’s time to bring this to a conclusion so we can get on with the business of innovating and delivering services consumers want.”

What the survey data reflects is the issues’ complexity and Americans’ struggle to understand its impact. Nearly the same number of Americans said they don’t understand the issue (45 percent) as said they do (48 percent).

But even if many don’t completely grasp net neutrality , they are looking for leadership from Washington to sort it out once and for all. And whatever happens, 82 percent of Americans want the FCC, which is slated to vote on net neutrality rules shortly, to be transparent about the proposed rule changes in advance of a vote.

The CALinnovates survey of 1,116 Americans was conducted from Nov. 27-Nov. 30 and has a margin of error of +/- 3 percent.

ABOUT CALINNOVATES

CALinnovates is a non-partisan technology advocacy coalition of tech companies, founders, funders and nonprofits.

Congress Must Answer the Call for Net Neutrality

A statement from CALinnovates Executive Director Mike Montgomery:

“Hopefully this puts to rest the FCC’s recurring role in this decade-plus long tragicomedy and forces Congress to deliver a lasting solution that will provide innovators and consumers the clarity, certainty and protections they require to navigate the digital era in which we live.

“In releasing the white copy rules for public review three weeks before the Commission’s vote, Chairman Pai has removed a lingering opaqueness that has obscured the openness the public deserves. Such transparency is far overdue at the 83-year-old FCC.

“Americans overwhelmingly favor a permanent law over regulations that can be changed from administration to administration. The power – and responsibility – to make those rules sits unquestionably on the shoulders of Congress. Despite ongoing Congressional gridlock, legislators must answer today’s call to develop clear, bipartisan rules that guarantee bright line protections.”

The Personal Enterprise Economy Lets Us All Be Entrepreneurs

By Kish Rajan

Imagine setting out to be a wedding photographer or a dog trainer as little as 10 years ago. These kinds of jobs required enormous effort to get off the ground. Often people working as sole proprietors had to not only be great at their jobs, they had to be marketers and book keepers as well. It was enough of a barrier to keep plenty of people in unfulfilling, and often low paying, jobs.

Today that’s changing. Platforms like Thumbtack give these kinds of professionals a digital space where they can easily start their businesses. Thumbtack brings the customer leads to the pros and then facilitates payments handling both the marketing and the book keeping.

That means that people who might have previously been afraid to follow their dreams can now start their own businesses. People in dead-end jobs can find ways to forge their own path.

Technological advances have enabled people to turn their passions into their livelihoods by making it easier to connect with customers. Now, benefits, licensing and other necessities of doing business need to follow suit.

Postmates is having a similar effect in the restaurant industry.

A decade ago, starting a small bakery or restaurant was an almost insane endeavor. Margins at food businesses are notoriously thin and while the right location can get you plenty of foot traffic, it can also cost more than many budding entrepreneurs can afford.

With Postmates, a small, out of the way restaurant has as much of a chance to thrive as one in a better location. As long as a Postmates driver can get there, the restaurant can attract online diners who want food delivered to their homes.

We hear a lot about how automation is hurting jobs but we hear a lot less about how technology is helping people who are building businesses in the service industry. This is a regular topic of discussion between the tech industry and members of the California Legislative Technology and Innovation Caucus.

The truth is that the nature of work has been changing for many years—long before companies like Uber and Airbnb came along. While layoffs were once a big problem for people who worked in manufacturing, today more people are quitting than getting fired. While politicians might bluster about returning to a mid-century economy, workers on the ground are quickly adjusting to the new reality.

What are often called gig economy companies are making up the difference. I prefer to call this sector the personal enterprise economy because what it’s really doing is giving everyone, no matter what your skill, a new way to build a business.

On Thumbtack, for example, two-thirds of the professionals on the platform work full time. That means these aren’t people scrambling to make ends meet from a second job. They are entrepreneurs who have built their own businesses often doing what they love. The service is available in all but one county in the United States making it a truly democratizing force.

These new technology platforms are giving people new ways to work and creating new opportunities. To pretend they are actually the forces destroying jobs is misread the tea leaves.

But we can do more to help people in this new economy succeed.

As we move into the future of work, government and businesses need to think about how to help workers succeed in the new economy. Benefits need to be decoupled from corporations. Licensing should not be tied to a specific small municipality. Professionals should be able to easily ply their trade across country lines. And training and retraining need to become high priority.

We are just at the beginning of this conversation but it’s crucial that we continue talking—and listening to new perspectives. That’s why tomorrow, CALinnovates, along with TechNet, Senator Cannella and Assemblymember Gray, is hosting the inaugural Valley to Valley Forum at UC Merced.

End The Policy Pingpong, Cement Net Neutrality Into Law

By Mike Montgomery

Like any reality show that hinges on ginning up new drama for its captivated viewers, the debate over net neutrality, now more than a decade old, is fueled by manufactured conflict.

Since 2005, here’s the scorecard: three attempts by the Federal Communications Commission (FCC) to implement net neutrality rules, two reversals, endless litigation and a whole lot of outrage by interest groups and think tanks on all sides of the issue that rely on perpetual conflict to fundraise.

That outrage has worked, inspiring more than 20 million net neutrality comments since 2014 — more than have been submitted about any issue in FCC history.

 

This endless loop is not doing most stakeholders any good; not the small businesses that net neutrality is designed to protect from being relegated to slow lanes, nor the consumers who want the new services and ever-increasing internet speeds that innovation and investment create.

Americans seem to understand this: According to a new survey, Americans overwhelmingly favor a permanent law over regulations that can be changed from administration to administration. Indeed, 74 percent of Americans said they would support net neutrality legislation that enabled them to use the internet free from government or corporate censorship, while creating rules that ensure a level playing field.

It’s time to end the slowest game of policy pingpong before it drags into another decade. It is high time for Congress to finally step up — after multiple decades of hibernation — and pass affirmative, bipartisan legislation that makes net neutrality the law of the land. That is something that CALinnovates has proposed for three years now; we are gratified that others are finally jumping on the bandwagon.

Unfortunately, many still balk. They would rather decry what the FCC is doing in reconsidering the Open Internet Order or rail against “government control.” In an ironic move, the “Day of Action” really highlighted the inaction we are stuck with — yet another round of public protests and bluster against the inevitable FCC reconsideration of the Open Internet Order instead of real action to demand that Congress enshrine net neutrality into law.

Let’s call that what it is: faux outrage. There is an opportunity — right now — to settle net neutrality once and for all with legislation that would ensure that whoever is in the White House and in charge of the FCC won’t rewrite the rules. Neither side is likely to get 100 percent of their demands, but there’s clear agreement over the core 95 percent that should be cemented into law.

Such legislation must guarantee clear rules that prohibit blocking and throttling and guarantee transparency. In short, there should be no discrimination whatsoever. Legislation should ensure that no “fast lanes” for preferred content are allowed to develop through paid prioritization, with few exceptions, such as free data. Free data (aka zero rating) and other offerings that don’t count against data caps must demonstrate how they provide consumer benefits and encourage, rather than stifle, competition.

Such legislation is likely to garner wide support, especially among younger voters. The recent survey revealed a surprising nuance about younger voters’ stance on internet governance. Contrary to previous understanding about millennials’ views on internet issues, the survey found these Americans are the most likely to think the internet is over-regulated. In fact, 18- to 29-year-olds were nearly twice as likely to favor congressional action over FCC oversight.

If Congress were to enact bipartisan legislation, the principles of an open internet would be the law — and the net neutrality reality show would be cancelled prior to season 13. Is there another option? Sure. Partisans could wait for the next Democratic president to appoint an FCC chair. At the earliest, that’s in 2021. Can the country go that long without net neutrality?

We can’t, and shouldn’t have to wait for inevitable swings in partisan control to settle this for the benefit of all sides. Congress must wake from its two-decade slumber regarding internet policy to take the decision away from the FCC and cement net neutrality once and for all.

As a strong supporter of the principles of net neutrality, CALinnovates believes Congress can muster such courage. Now it is time to see if interest groups representing all positions in this debate will set aside their faux outrage long enough to put their heads where their hearts are.

Mike Montgomery is the executive director of CALinnovates, a coalition of tech companies, founders, funders and nonprofits that aims to educate policymakers, elected officials and regulators on the virtues of the 21st-century digital economy and raise the issues of importance to the technology community at the local, state and federal levels of public policy.

This piece was originally published in The Hill.