In a party line vote, the Republican-controlled House dealt a blow to internet privacy advocates on Wednesday, passing a bill that would roll back Obama-era protections on consumer data. President Donald Trump is expected to sign the bill, according to the White House. Undoing the rules, which were set to take effect at the end of the year, might signal a new path for the Federal Communications Commission, favoring unfettered industry growth over consumer-friendly protections.

Last October, the FCC enacted a new set of rules against internet service providers (ISPs) like AT&T, Verizon, and Comcast, barring them from collecting consumer data such as browsing habits, app history, and location data. Personal information, like a customer’s social security number, was also safeguarded. Though internet companies like Google and Facebook use customers’ data as currency in selling targeted advertisements, the FCC decided ISPs should not be granted the same unregulated access.

Those protections will vanish with the new law, as would the ability for the FCC to draft similar rules in the future. “Today’s vote means that Americans will never be safe online from having their most personal details stealthily scrutinized and sold to the highest bidder,” Jeffrey Chester, executive director of the Center for Digital Democracy told The Washington Post.

Privacy advocates argue repealing the protections will grant ISPs access to customer data in a bid to boost profits. Instead of simply providing a channel for internet access, ISPs are now wading into territory dominated by billion-dollar mammoths like Google and Facebook: targeted advertising.

So while the protections would not have barred those companies from accessing user data to sell to advertising agencies and marketers, privacy advocates argue ISPs have access to a wider range of data than search engines and other websites, and thus should be more restricted. Some also worry that net neutrality–the policy that internet providers treat the web as a level playing field–could be next on the chopping block.

But opponents of the rules, and champions of the new path the FCC seems to be following, say that the rules would have stifled innovation. Industry advocates say the rules defined privacy too broadly (browsing and app history should not be private, they argue), and provided an unfair advantage to other data-collectors like Google, as the rules only targeted ISPs.

“There is no lawful, factual or sound policy basis to justify a discriminatory approach that treats ISPs differently from some of the largest companies in the Internet ecosystem that engage in similar practices,” The Internet & Television Association, an industry trade group, said last October when the rules were passed.

Ajit Pai, the newly-appointed FCC chairman, said the Federal Trade Commission, a consumer protection agency, will work together with the FCC to “ensure that consumers’ online privacy is protected through a consistent and comprehensive framework.” He said “jurisdiction over broadband providers’ privacy practices” would be returned to the FTC. But Pai added the FCC could still bring privacy-related lawsuits against ISPs.

Rep. Mike Doyle (D-PA), who voted against the bill, said in a House committee hearing on Monday that he worries that in the absence of regulations, ISPs will abuse their data-collecting power. “One would hope — because consumers want their privacy protected — that they would be good actors, and they would ask permission and do these nice things,” said Doyle. “But there’s no law now that says they have to, and there’s no cop on the beat saying, ‘Hey, we caught you doing something.’”

Alec Siegel

Alec Siegel is a staff writer at Law Street Media. When he’s not working at Law Street he’s either cooking a mediocre tofu dish or enjoying a run in the woods. His passions include: gooey chocolate chips, black coffee, mountains, the Animal Kingdom in general, and John Lennon. Baklava is his achilles heel. Contact Alec at ASiegel@LawStreetMedia.com.

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Net Neutrality has been the center of an important political and technological debate for a while now. Law Street has covered the different developments extensively. This week, President Obama released a statement affirming the need for net neutrality, and it was a strong one.

If you don’t want to watch the entire statement, here are the sparknotes. Obama affirmed the concept of net neutrality and stated his plan moving forward: he wants the Federal Communications Committee (FCC) to reclassify the internet and protect net neutrality. As he put it in his statement:

To do that, I believe the FCC should reclassify consumer broadband service under Title II of the Telecommunications Act — while at the same time forbearing from rate regulation and other provisions less relevant to broadband services. This is a basic acknowledgment of the services ISPs provide to American homes and businesses, and the straightforward obligations necessary to ensure the network works for everyone — not just one or two companies.

Essentially, Obama wants to prevent Internet Service Providers (ISPs) from changing or altering the speeds at which they provide service to various sites or users. He wants to prevent what’s called “internet fast lanes,” because they mean that ISPs would have control over how fast particular sites load. Fast lanes stifle creativity, equality, and would give a ton of power and money to ISPs such as the much-maligned Comcast.

Of course, Obama can’t support anything without there being a very good chance that the other side of the aisle will get up in arms about it, and that’s exactly what happened here. Rising Republican star Ted Cruz tweeted the following:

"Net Neutrality" is Obamacare for the Internet; the Internet should not operate at the speed of government.

— Senator Ted Cruz (@SenTedCruz) November 10, 2014

There are so many things wrong with this statement, I’m not even entirely sure where to start. It’s almost like Cruz created this tweet during a game of petty political Mad Libs–the prompt would have been “fill in a controversial program that will make people angry with the President without explaining the context, giving a comparison, or even trying to justify it.”

First of all, this shows that Cruz fundamentally does not understand what net neutrality is. Luckily, the very denizens of the internet whom net neutrality would hurt had a nice response for Ted Cruz–my favorite was the one by the Oatmeal, a humorous web comic. In addition to being a great take down of Cruz, it is also a pretty good explanation of net neutrality for the uninitiated. Take a look:

Dear @SenTedCruz, I’m going to explain to you how Net Neutrality ACTUALLY works http://t.co/rQWMlmJTmY pic.twitter.com/dvxQGDZMBF

— Matthew Inman (@Oatmeal) November 10, 2014

The Oatmeal’s point is simple–Cruz takes money from the very same ISPs that want to be able to charge people more for their services. And then he turns around and posts something on Twitter that’s not just horribly inaccurate but clearly inflammatory. Because he most likely does not understand net neutrality.

But Cruz and the people who work for him know how to score political points. And comparing anything to Obamacare is going to be a winning metaphor among those who have decided that Obamacare is the devil incarnate.

The fact that Cruz is against net neutrality is a bit upsetting though. It stands directly in contrast to the principles he purports to support. Cruz’s website focuses heavily on the idea of small business success, and working hard to achieve your goals.

Those principles–economic success through small business growth, pulling oneself up by the bootstraps–of Republican theory have been made so much easier by the advent of the internet. Now an entrepreneur can start a small business and use the resources provided by global connectivity to reach customers all over the world. A student who doesn’t have access to very good educational resources can use the internet to learn, for free.

But Ted Cruz would rather compare the internet to Obamacare because it’s easy.

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

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Net neutrality has been an incredibly important and controversial topic in recent months. So many of us use the internet for many important things on a daily basis–whether it be paying bills, completing work, or engaging in much needed Netflix-binging at the end of a long week. One of the great things about the internet is that in a lot of ways it’s a great equalizer–it doesn’t matter if you’re sitting in a mansion or a library, using a brand new Ipad or a desktop that’s past its prime–we all have access. But an end to net neutrality threatens that implicit equality. Which is why a lot of people, including President Barack Obama, have said that they support net neutrality.

The debate over net neutrality revolves around another newly popular term–“internet fast lanes.” Essentially, internet fast lanes are when Internet Service Providers (ISPs) like Comcast, for example, allow various companies to have faster “lanes” of bandwidth. To make it very simple, imagine you’re driving down a five lane highway. Anyone can get all the way into the left lane, the fastest lane, if they like. But then imagine you show up one day and there’s a toll you have to pay to get into that lane. Net neutrality prevents that from happening, and makes sure that a page from, say, Lawstreetmedia.com is able to load just as quickly as any other page. That’s an incredibly simplified version of what internet fast lanes would do, but for a great in depth explanation on net neutrality and internet fast lanes, make sure to check out fellow Law Streeter Eric Essagof’s piece.

A lot of people have argued against fast lanes, arguing that they’re predatory. Due to a series of court decisions, the Federal Communication Commission’s standing rules forbidding ISPs from making fast lanes no longer stand. So the FCC is writing new rules, and no one is entirely sure what they’ll do. Some think they’ll allow fast lanes, others thing that they’ll reclassify certain definitions to make sure that fast lanes aren’t able to become reality.

President Obama weighed in on the debate yesterday, saying:

My appointee, [FCC Chairman] Tom Wheeler, knows my position. Now that he’s there, I can’t just call him up and tell him exactly what to do. But what I’ve been clear about, what the White House has been clear about, is that we expect whatever final rules to emerge to make sure that we’re not creating two or three or four tiers of Internet.

Obama is echoing the sentiment that many people feel, that allowing internet fast lanes is unfair and will really just lead to more money in the pockets of ISPs. It also slows the amazing things that the internet has been able to do. The internet can connect people from all over the globe, and result in innovation and collaboration that would otherwise be near impossible. It can provide a ray of light for a kid somewhere that thinks that he or she is the only one with their particular interests or hobbies. It can provide sources of free education in places where good teachers are hard to come by. As Reed Hastings, a Netflix chief executive, so perfectly put it, “Why are so many people attracted to the concept of net neutrality? Because they fear the loss of the digital commons.” He’s absolutely right–those digital commons bring us closer to an equal playing field, and like Obama, I hope that the FCC remains devoted to net neutrality.

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Anneliese Mahoney (@AMahoney8672) is Lead Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

Featured image courtesy of [Free Press via Flickr]

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post President Obama: Not a Fan of Internet Fast Lanes appeared first on Law Street.

The FCC is on the verge of allowing internet fast lanes that would allow content providers to pay for faster access for their customers. Read on to learn why this proposal has generated so much controversy.

What is an internet  fast lane?

When commentators say “fast lane,” they are usually referring to paid prioritization. This is when an Internet Service Provider (ISP), such as Comcast or Time Warner, charges a content provider, such as Google or Facebook, an extra fee for faster “lanes” of bandwidth. Effectively, the ISPs would be allowing content providers to pay for easier access to customers.

Netflix recently agreed to pay Comcast for faster access to its customers. This is the first deal of its kind.

Netflix is not happy about the deal at all. In a blog post, CEO Reed Hastings referred to the fee as an “arbitrary tax” and expressed concerns that escalating fees could continue to be charged to Netflix and other content providers. Netflix may have agreed to pay this fee not to gain an advantage but to gain download speeds they once had. This graphic from the Washington Post shows that Netflix’s download speeds on Comcast tanked during the negotiations and then suddenly spiked once Netflix agreed to pay the fee:

Why are ISPs allowed to create fast lanes?

ISPs like Comcast are allowed to charge content providers for faster access because of a recent court decision that struck down the Federal Communications Commission’s (FCC) rules regarding net neutrality. The FCC is the federal agency in charge of regulating communications over mediums such as radio and television.

Net neutrality is the concept that all data on the Internet should be treated equally. You should be able to load a Netflix page just as fast as you can load a YouTube page. This video from Mashable provides a clear visualization of the concept.

The FCC created regulatory rules in 2010 that would enforce net neutrality. Cable companies and other ISPs immediately cried foul and filed lawsuits.

On January 14, 2014, a U.S. appeals court overruled the new rules. The reason? Broadband Internet is classified by the government as an information service. The FCC does not have the authority to regulate information services. The Internet used to be classified as a telecommunications service until a 2005 Supreme Court ruling. The FCC is allowed to strictly regulate telecommunications services.

What is the FCC doing about fast lanes?

In the wake of the court ruling, the FCC is in the process of writing a new set of Internet rules that allow for fast lanes. For the past few months, the FCC has allowed public comment on its website on one main question: should the new rules allow fast lanes?

There is a possibility that these rules would permit only some heavily regulated fast lanes to exist. The FCC says that the rules would require these lanes be “commercially reasonable,” but that’s a vague requirement that could be exploited.

There’s also a possibility that the FCC could go in the opposite direction and ban prioritization. The FCC would do this by reclassifying broadband Internet as a telecommunications service, giving it the power to strictly regulate ISPs. This reclassification would almost certainly face a legal challenge by ISPs, as well as a challenge from Congress.

How have people reacted to this proposal?

The FCC received more than one million online comments about the proposed rule change in the span of five months. That is the most comments the agency has ever received, and almost topped the number of complaints the Commission received after Janet Jackson’s “wardrobe malfunction” at the Super Bowl.

Activists and content providers alike are not happy that the FCC is even considering legalizing fast lanes.

The Internet Association, an industry group that represents companies like Amazon, Google, and Uber, submitted a lengthy comment to the FCC’s website arguing, in part, that “charging for enhanced or prioritized access […] undermines the Internet’s level playing field.”

The association also expressed concern that ISPs might provide prioritization to their own content. For example, Comcast owns NBC Universal. A fast lane rule would allow Comcast to prioritize access to NBC television streaming over the quality of other network streaming services.

John Oliver, host of HBO’s Last Week Tonight With John Oliver, took a more cynical view in this widely shared segment. Oliver accused the FCC and Chairman Tom Wheeler, who used to be a lobbyist for cable companies, of corruption. He also called on Internet trolls to flood the FCC with comments.

MoveOn, the liberal activism website, released this television ad encouraging viewers to call the FCC in support of network neutrality.

MoveOn’s lead campaign director Victoria Kaplan also released a statement saying that “MoveOn members strongly support Net Neutrality and are calling on the FCC to scrap proposed rules that would undermine an open Internet.”

ISPs, for the most part, are issuing vague statements about how they support an “open Internet.” For example, Comcast released a statement saying that “we support the FCC putting in place legally enforceable rules to ensure that there is a free and open Internet, including transparency, no blocking, and anti-discrimination rules.” This doesn’t really say anything specific. Comcast argued later in the statement against a reclassification of broadband Internet, but never argued why they should be allowed to charge for fast lanes.

In stunning contrast, AT&T provided a robust defense of fast lanes in its FCC comment. The whole document is definitely worth a read, but here’s the most important quote:

“In no other area of the economy does the government ban voluntary market transactions (here, for example, quality-of-service enhancements) specifically in order to prevent those with superior resources from offering better services to their own customers.”

The line AT&T concluded the paragraph with is equally important to understanding the company’s argument:

“In short, the theoretical basis of this rationale for a strict nondiscrimination rule is thoroughly unsound and anathema to a market economy.”

AT&T’s argument is pretty unique. It is essentially saying that not allowing content providers to pay for a fast lane or not allowing ISPs to offer such an “upgrade” goes against the very foundation of a capitalist economy.

What’s important about this argument is the claim by AT&T that the fast lane would only amount to an “enhancement” in service for some companies and not a downgrade in service for companies that do not pay the fee.

Many activists doubt this will be the case. Instead, the “free” lane would be significantly slower. As John Oliver put it in the previously embedded segment, “if we let cable companies offer two speeds of service, it won’t be Usain Bolt and Usain Bolt on a motor bike. They’ll be Usain Bolt and Usain Bolted To An Anchor.”

Conclusion

Soon, the FCC will create a new set of rules governing the Internet. It will either allow fast lanes to exist and face harsh public criticism or it will fight for net neutrality and face a barrage of lawsuits and challenges from ISPs and Congress. This is an issue you will want to keep an eye on if you use the Internet regularly.

Resources

Primary

FCC: FCC Launches Rulemaking On How To Protect The Open Internet

FCC: Comment: AT&T

FCC: Internet Association: Comment

Additional

Netflix CEO: The Case for Net Neutrality

Wall Street Journal: Court Tosses Out Open Internet Rules

CNET: 2005: FCC Changes Internet Classification

Hill: Former FCC Chairman on Net Neutrality

NPR: One Million FCC Comments Filed

Comcast: Comment

Guardian: Welcome to the Age of Digital Discrimination

MoveOn: Keep Internet Open

NextGov: The FCC is Getting Serious

Geeksided: MLB Speaks Out Against Fast Lanes

Eric Essagof

Eric Essagof attended The George Washington University majoring in Political Science. He writes about how decisions made in DC impact the rest of the country. He is a Twitter addict, hip-hop fan, and intramural sports referee in his spare time. Contact Eric at staff@LawStreetMedia.com.

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