Karl Herchenroeder

Sen. Richard Blumenthal, D-Conn., sent a letter asking the FTC and DOJ to open an investigation into Amazon’s price parity provisions, a controversial practice it ceased in Europe. Blumenthal announced the request Wednesday during a Senate Antitrust Subcommittee hearing, in which he claimed U.S. consumers are paying higher prices for goods via Amazon because of the “invisible” clause preventing merchants from charging lower prices. He called the contractual obligation for third-party sellers a barrier to entry and asked witnesses why Americans don’t deserve the same protections as Europeans. An FTC spokesperson confirmed it received the letter. DOJ didn’t comment.

Facebook partnerships with other companies didn’t allow access to personal data without consent, nor did they violate a 2012 consent decree with the FTC, Director-Developer Platforms and Programs Konstantinos Papamiltiadis responded Tuesday. The New York Times reported, based on 2017 documents, Facebook gave access to personal data, sometimes allegedly without consent, to Microsoft, Apple, Netflix, Spotify, Amazon, Yahoo and Russia Kremlin-linked search company Yandex. The agreements let users integrate Facebook features on other apps, Papamiltiadis said, and it has since ceased many such partnerships. Agreements remain active with Amazon, Apple, Alibaba, Mozilla and Opera, he said. Authorization to the data is granted when a user logs into apps through Facebook, he said. The FTC should consider these new allegations in its current Facebook investigation, and Congress needs to move forward with legislation in 2019, Public Knowledge Policy Counsel Charlotte Slaiman said. Washington, D.C., Attorney General Karl Racine (D) Wednesday sued Facebook for mishandling user data in the Cambridge Analytica scandal and failing to report the breach. Racine seeks “monetary and injunctive relief, including relief for harmed consumers, damages, and penalties to the District” for violating D.C.'s Consumer Protection Procedures Act. “We’re reviewing the complaint and look forward to continuing our discussions with attorneys general,” a Facebook spokesperson emailed. "If there's one complaint filed in court in the District of Columbia you consider reading today, make it this one: http://oag.dc.gov/sites/default/," tweeted FCC Commissioner Jessica Rosenworcel.

Senate Intelligence Committee reports put malicious Instagram activity on Congress’ radar, lawmakers told us this week. One finding was continued meddling by Russia’s Internet Research Agency (see 1812170036). Lawmakers said such activity isn't surprising.

The FTC should be able to levy “real” penalties, like forcing executive firings, to deter FTC order violations and data misuse, Commissioner Rohit Chopra said Thursday. “When we find blatant misconduct, settling that for a no-money, no-consequences order, I worry that that’s just a green light for other market participants to say, ‘Hey -- there’s no downside even if we get caught, except for maybe a day of press,'” he said at a Capitol Forum event. Some experts at the event also said they expect the U.S. Court of Appeals for the D.C. Circuit to affirm a lower court’s approval of AT&T’s buy of Time Warner, but that the deal nonetheless poses competitive dangers (see 1812130004).

Brian Schatz, Hawaii, and 14 other Democratic senators introduced a bill Wednesday that would set parameters for companies collecting data online. The Data Care Act would require “reasonable efforts” to secure data and notify users of breaches, prohibit companies from using data to “harm” users and set confidentiality guidelines for third-party sharing of data. It would give the FTC limited rulemaking and civil penalty authority. Schatz told reporters Wednesday his office discussed the bill with Internet Association, with some IA members voicing displeasure for the content, and with Republican lawmakers. The tech industry looks forward to working with lawmakers including Schatz on "our shared goal of passing an economy-wide law that protects consumer privacy and allows companies to innovate," said IA CEO Michael Beckerman. The bill will “complement,” not compete with, any overarching bill produced by the Senate Commerce Committee, he said. Having state privacy laws bolsters Democrats’ bargaining position, he added, saying he has no problem with a state patchwork if the ultimate privacy package isn't a progressive law like California’s. He noted the bill isn't one of the items under consideration by a bipartisan working group that includes Schatz, Sen. Richard Blumenthal, D-Conn., likely Chairman Roger Wicker, R-Miss., and Sen. Jerry Moran, R-Kan.

Google algorithms have no political slant, and the company has no current plans to launch a Chinese version of Search, CEO Sundar Pichai told the House Judiciary Committee. He played down fears other Google products carry the same security risks as Google-Plus (see 1812100054).

Senate Commerce Committee lawmakers told us last week they are motivated to address data security and privacy issues early in 2019, amid a steady stream of breaches. Sen. Richard Blumenthal, D-Conn., told reporters he’s hopeful for a draft privacy bill with Sen. Jerry Moran, R-Kan., “early in the next session.” Chairman John Thune, R-S.D., and his likely committee successor, Sen. Roger Wicker, R-Miss., plan to advance the panel’s privacy effort and address a wide range of data breach issues.

The White House will follow up Thursday’s tech executive meeting (see 1811300036) with additional tech-related gatherings, administration officials said during a news-media call speaking on condition they not be identified. Asked if Amazon, Apple and Facebook were invited Thursday, an official said she believed everyone who was invited attended. Apple CEO Tim Cook was floated as a potential participant for future meetings. Apple and Amazon didn’t comment. Facebook wasn't invited Thursday, a spokesperson said. Thursday’s attendees were said to have included Google CEO Sundar Pichai, Microsoft CEO Satya Nadella, IBM CEO Ginni Rometty, Qualcomm CEO Steve Mollenkopf, Oracle CEO Safra Catz, Massachusetts Institute of Technology President Rafael Reif, Carnegie Mellon University President Farnam Jahanian, Blackstone Group CEO Stephen Schwarzman and former Secretary of State Henry Kissinger. Administration participants included White House Deputy Chief of Staff-Policy Coordination Chris Liddell, Deputy U.S. Chief Technology Officer Michael Kratsios, U.S. Trade Representative Robert Lighthizer, National Economic Council Director Larry Kudlow, National Economic Council Deputy Director-Economic Policy Shahira Knight and advisers Jared Kushner, Ivanka Trump and Kevin Hassett. The meeting was to have focused on artificial intelligence, 5G and quantum computing.

Sometimes, law enforcement needs outweigh the right to online privacy, said DOJ Criminal Division Deputy Chief-Computer Crime Michael Stawasz Wednesday, citing child sex-trafficking and copyright infringement. There has been a constructive discussion about privacy, but platforms don’t get a pass to aid and abet, Stawasz said during an International Institute of Communications panel. Providers should take privacy seriously but need to allow a space where effective investigations root out illegal behavior, he said, arguing law enforcement isn't asking for “back doors” but responsible conduct. Asked if anything of value was gained from DOJ’s recent tech-related meeting with state attorneys general (see 1809250033), Stawasz said he wasn’t invited, but the gathering was recognition of shared responsibilities by different levels of government. The U.S. system means state and local government handle most criminal law, but “I do see that changing to some degree because of the internet,” he said. FTC Commissioner Noah Phillips said in a keynote markets work properly when consumers have the information they need. It’s not clear how companies can share mass data with competitors and adequately protect privacy, said Software & Information Industry Association Senior Vice President-Public Policy Mark MacCarthy. One-size-fits-all regulation for content moderation will drive smaller companies out, said Engine Executive Director Evan Engstrom. The U.S. needs to create a healthy internet ecosystem without a regulatory regime only large platforms can comply with, he said. The expectation is for companies to be “socially responsible” now, said Oath Global Head-Business and Human Rights Nicole Karlebach.

The administration will soon publish public comments on the update to the National Artificial Intelligence Research and Development Strategic Plan expected in early spring, White House Office of Science and Technology Policy Assistant Director-Artificial Intelligence Lynne Parker said Tuesday. The administration is pleased overall with the strategic plan inherited from the previous administration, Parker told an Information Technology and Innovation Foundation event. The overwhelming majority of comments are positive, she said: “We don’t need to overhaul the original plan.” The federal government can’t ignore significant AI investment from industry and R&D gaps, she said.