Karl Herchenroeder

Artificial intelligence will have major ramifications economy-wide, potentially revolutionizing the communications industry, Chairman Ajit Pai said. At an FCC event, he urged “regulatory humility” when dealing with emerging technology, as micromanagement would be “foolish or counterproductive.”

Securing against botnets requires collective action from government, internet and communications stakeholders, industry officials said Thursday, releasing a report. The Council to Secure the Digital Economy cybersecurity coalition between tech and communications groups warns against “prescriptive, compliance-focused regulatory requirements.” Government’s role isn't regulation that stymies response to threats, Information Technology Industry Council CEO Dean Garfield said during a panel. The goal should be to cut back 90-95 percent of threats because no amount of collaboration will be able to eradicate all threats, CTA CEO Gary Shapiro said. There’s no higher cause than addressing threats to the digital economy, USTelecom CEO Jonathan Spalter argued, saying the cyber group plans to release an annual report: “This isn’t one and done.” Threats are increasing as the value of the tech sector grows, Garfield said. Shapiro called it a multi-factorial problem with multi-factorial solutions. Botnets can turn “everyday products into an army of devices capable of transmitting torrents of Internet traffic capable of knocking targeted networks offline,” Deputy Attorney General Rod Rosenstein said during a separate appearance Thursday. He encouraged the private sector to continue searching for “constructive solutions." The Commerce and Homeland Security departments released a road map highlighting focus areas for government and the private sector: the IoT, enterprise, internet infrastructure, technology development and awareness/education.

The FTC’s goal is to reach the “right result” as fast as possible for privacy probes, Chairman Joe Simons testified when pressed by lawmakers for a timeline on the Facebook-Cambridge Analytica investigation. Simons wouldn't address specific cases during the first oversight hearing with all five new commissioners before the Senate Consumer Protection Subcommittee (see 1811230021). Hours earlier Tuesday, Facebook also faced heat at a multicountry hearing in U.K.'s House of Commons (see 1811270014).

Consumers have the right to sue for damages involving Apple’s alleged App Store monopoly (see 1811050033), liberal Supreme Court justices suggested Monday during oral argument in Apple v. Robert Pepper, docket 17-204. Conservative justices warned against allowing both developers and consumers to pursue potentially duplicative compensation. But Justice Brett Kavanaugh appeared to side with Pepper.

The Senate Consumer Protection Subcommittee’s FTC oversight hearing Tuesday (see 1811200051) is an opportunity for lawmakers to show bipartisan interest in federal privacy legislation, industry lobbyists told us. With all five commissioners set to testify, it’s also a chance to find out where there's consensus and disagreement within the FTC (see 1811210031), they said.

Despite high-level consensus from the FTC, consumer groups and industry on the need for stronger agency enforcement authorities, it will be very challenging to reach agreement on specifics for a new data privacy bill, tech interests told us.

Department of Homeland Security Secretary Kirstjen Nielsen repeatedly cited the need for “relentless resilience” Friday, lauding launch of the Cybersecurity and Infrastructure Security Agency. President Donald Trump signed legislation Friday restructuring the National Protection and Programs Directorate into CISA, a new DHS agency.

Congress will need to decide how much it’s willing to disrupt competition when crafting privacy legislation, FTC Commissioner Noah Phillips said in an interview for C-SPAN's The Communicators, to have been televised Saturday: While lawmakers want to protect consumers, they must keep in mind that regulatory schemes can harm competition and entrench incumbents. “That may be worth it,” Phillips said. “It may be that the problem we’re solving is such that we’re willing to take a little competition out of the market, but it’s something that we need to keep in mind.” Determining these “value judgments” should come first before deciding whether the FTC needs better privacy authority, he said. “That a firm is large under our law doesn’t necessarily make it a bad firm. It doesn’t make its conduct illegal,” he said. Sometimes, firms illegally protect their position in the market, and that’s something the FTC should monitor, he noted. Phillips warned against using antitrust law to address claims that platforms are favoring content based on ideology, noting he's not sure his agency has a role there.

Consumer protection for artificial intelligence systems is a lot harder for the FTC without clear visibility into system decision-making, said Electronic Frontier Foundation Tech Projects Director Jeremy Gillula Tuesday during the agency’s seventh policy hearing. Some companies have made an effort, but it’s an ongoing problem, he said. Consumers and researchers might not necessarily need every detail about machine learning and artificial intelligence decisions, said Google Brain Team Senior Staff Research Scientist Martin Wattenberg. Google isn't giving “the full matrix of every weight in the neural network, but we’re giving them information that’s useful at the level that they want in terms of a concept that they’re actually interested in.” Wattenberg emphasized progress made in coming up with ways to understand these systems: “They no longer need to be considered black boxes.” Google recommended practices for fair artificial intelligence use, which covers interpretability, privacy and security. Computer & Communications Industry Association Competition and Regulatory Policy Director Marianela Lopez-Galdos questioned whether laws that focus on consumer welfare are sufficient to address machine learning issues.

Civil penalty authority could encourage companies to take data security seriously, an incentive to increase investment, said FTC Consumer Protection Bureau Director Andrew Smith Friday at a Free State Foundation event. He was asked about the agency’s recent no-fine settlement with Uber (see 1810260040). It’s very difficult to show the “causal link” between a security breach and harm to consumers, he said, but some commissioners believe there’s a “systemic underinvestment” in data security.