The Senate Intellectual Property Subcommittee will form a bipartisan, bicameral working group to aid the Copyright Office’s modernization effort and introduce related legislation before year-end, Chairman Thom Tillis, R-N.C., said Tuesday. Ranking member Chris Coons, D-Del., and Sens. Marsha Blackburn, R-Tenn., and Mazie Hirono, D-Hawaii, are interested in joining, Tillis told us. House members will be invited.
Karl Herchenroeder
Karl Herchenroeder, Associate Editor, is a technology policy journalist for publications including Communications Daily. Born in Rockville, Maryland, he joined the Warren Communications News staff in 2018. He began his journalism career in 2012 at the Aspen Times in Aspen, Colorado, where he covered city government. After that, he covered the nuclear industry for ExchangeMonitor in Washington. You can follow Herchenroeder on Twitter: @karlherk
The FTC's antitrust probe of Facebook is “a significant step,” Senate Judiciary Committee Chairman Lindsey Graham, R-S.C., told us last week. Ranking member Dianne Feinstein, D-Calif., lauded the probe, questioning whether Facebook is willing to make changes. For months, lawmakers from both parties have asked whether Silicon Valley competition needs greater scrutiny. Concrete action came last week with DOJ announcing a broad review of the tech industry and the FTC confirming its Facebook investigation (see 1907250049).
DOJ Antitrust Division Chief Makan Delrahim met with Senate Antitrust Subcommittee leadership, aides told us Thursday. Delrahim originally was to testify before the panel with FTC Chairman Joe Simons on Tuesday, the same day DOJ announced a broad review of the tech industry (see 1907230057). The oversight hearing was postponed until September (see 1907220047).
A bipartisan group of eight attorneys general including from Texas, Louisiana, Mississippi and Florida met with Attorney General William Barr Thursday about tech industry competition, aides confirmed. The coalition discussed “real concerns consumers across the country have with big tech companies stifling competition on the internet,” it said in a joint statement: “It was a productive meeting, and we’re considering a range of possible anti-trust actions against such companies.” Aides didn’t say which other states participated. California AG Xavier Becerra didn’t attend, an aide said. DOJ and offices for other state AGs didn’t comment.
Facebook will pay $5 billion and install an independent privacy committee to oversee data compliance, the FTC announced Wednesday in its long-awaited settlement. The company deceived users about control they have over their data, effectively violating a 2012 consent order, the agency alleged in its complaint. Separately, the SEC fined Facebook $100 million.
Equifax will pay between $575 million and $700 million to settle claims for its 2017 data breach (see 1803010033), the FTC announced Monday in a joint settlement with the Consumer Financial Protection Bureau and 50 states and territories. Equifax failed to secure massive amounts of personal data with basic safeguards, the FTC alleged in its complaint filed in U.S. District Court for the Northern District of Georgia. Data included names, dates of birth, Social Security numbers and physical addresses, exposing some 147 million consumers to identity theft and fraud risks, the agency said.
The FTC again met criticism last week from Senate Democrats and Republicans after reports of an estimated $5 billion privacy settlement with Facebook. A former commissioner defended the agency's reported 3-2 decision, saying a more-stringent penalty was never guaranteed in court.
The Senate Judiciary Committee unanimously advanced to the floor legislation that would establish a voluntary small claims board within the Copyright Office (see 1907110060). Groups including Public Knowledge and Center for Democracy & Technology remain opposed. They said it would subject internet users, who unknowingly violate copyright, to unfair fines up to $30,000.
A Senate Judiciary Committee task force led by Sen. Marsha Blackburn, R-Tenn., discussed privacy with Salesforce, Snap, Mozilla and Match representatives, a Blackburn aide confirmed Thursday. Blackburn will co-chair the task force with ranking member Dianne Feinstein, D-Calif., the aide said. There’s no end date for the group’s efforts, given ongoing issues for the tech industry, and members hope to meet again before the August recess, the aide said. Blackburn, Feinstein, Sen. Chris Coons, D-Del., and Sen. Richard Blumenthal, D-Conn., attended Thursday’s gathering with about 50 people, said the aide. Discussing the need for a new federal privacy law is “a good spot to start,” Blackburn told us, noting the task force is open to all committee members. Blackburn said on the Senate floor that the group will also explore antitrust, competition and any other issues that arise. She urged backing for her Browser Act (see 1904110052). Sen. Josh Hawley, R-Mo., told us his office is interested in participating. “I’m glad there is increasing interest,” he said. “I hope we will be moving toward some actual legislation.” Speaking on the Senate floor, Senate Majority Whip John Thune, R-S.D., reaffirmed his commitment to reaching bipartisan, federal privacy legislation that sets one standard across the U.S. Hawley noted there have been public calls to re-examine the tech industry’s content liability shield from Blumenthal and Sens. Lindsey Graham, R-S.C.; Mazie Hirono, D-Hawaii; and Ted Cruz, R-Texas, since he introduced legislation aimed at Section 230 of the Communications Decency Act.
Calibra head David Marcus on Wednesday avoided committing Facebook to a moratorium on its cryptocurrency plans (see 1907150051), despite repeated calls from House Financial Services Committee Democrats at a hearing. Afterward, Chairwoman Maxine Waters, D-Calif., told us Marcus would leave Capitol Hill understanding her committee is serious about blocking the project until concerns are resolved. “We have oversight responsibility, and we’re going to live up to our responsibility,” she said.