Bridge Span 18-2: SESTA Senselessness

Yesterday the Senate voted to approve legislation that will likely become a marker of a turning point for the internet ecosystem. The legislation, now on its way to the President’s desk, is known as SESTA (Stop Enabling Sex Traffickers Act of 2017) and allows for politicians to claim that they somehow helped stop sex trafficking when a closer look shows they have accomplished nothing except harm to the very functioning of the internet and the freedoms we have all enjoyed.

To say the very least, reducing and trying to eliminate sex trafficking is the right thing to do. Survivors, law enforcement officials and victim’s advocates all share horrendous stories that demonstrate the depravities that one human is willing to visit on another. The goal has never been wrong. The way the goal has been attempted wrong. That politics have governed the outcome, rather than thoughtful and deliberate public policy, is wrong.

The new law functions by tearing apart Section 230 of the Communications Act, which protects internet companies from lawsuits over user-generated content. So, what does section 230 really do? Imagine you open monthly flea market in your hometown and a person rents a booth from you. Rather than selling baseball cards as they told you and registered to do, they are selling illegal opioids without your knowledge, intentionally acting to escape your notice. You should be held liable? Hardly. Should FedEx be held liable if packages of cocaine are shipped via their trucks without their knowledge or consent? No.

Section 230 made sure that internet services are not responsible for the bad deeds and words of others said on their platform but without their involvement. Be a bully and you pay the price, not the web service. That sort of personal accountability used to be a value the GOP embraced.

Here is what America is really getting:
• SESTA was opposed by the Department of Justice and the House Judiciary Committee stating that the law will not help prosecutors and will actually complicate future investigations, undercutting its supposed value.
• To that point, an attempt to make the law workable by providing $20 million to fund criminal prosecution of websites that facilitate trafficking was rebuffed by the supporters.
• Worse, the Department of Justice has also warned that the legislation is unconstitutional, meaning that time and taxpayer money will be invested in trying to defend the indefensible.
• The Wall Street Journal has made clear that the law will be a bonanza for trial lawyers and legally adventuresome state’s attorneys general by making it easier to sue rich, and these days politically unpopular, web platform companies.
• The law actually discourages legitimate websites from keeping an eye on user content to protect against any form of abuse, as the law makes clear that monitoring for harmful content no longer protects a company and in fact exposes it to greater risk. In the end, the online world will become worse than the supporters of this law claim it is now.
• Or the flip side, stricter monitoring at the behest of the federal government may ensue and web sites might censor speech on them out of fear of liability. Such monitoring will only lead to marginalized voices being eliminated, and for all voices to be further restricted by government. Are we really in favor of that or do we prefer the freedom of speech free of persistent government oversight?
• The law erects a new barrier to entry perfectly suited for keeping out upstarts and likely being a heavier regulatory burden than small companies can bear. Large companies will do well because they can afford the extra overhead. Congress has created this barrier that will encourage and protect monopolies from competition, and later the same Congress will attack them for being monopolies looking to impose heavy handed regulation.

Far from being special protection for online operators, or an “internet industrial policy” as some have asserted, the notion of intermediary liability and its bounds stretch well back in jurisprudence history long before the advent of the internet. In fact, that history was the basis for Congressional thinking and drafting when section 230 was created. The same philosophies have been applied to everything from delivery companies to flea markets. Exposing online intermediaries to greater liability than intermediaries in the analog world reveals commentator’s and Congress’ bias away from rule of law in favor of rule of sophistry. The decision was nothing but mere politics. Internet companies failed to play the political game correctly and now Congress, and many policy commentators, are making sure they pay. The goal has always been about subjecting web platforms to greater liability, and truthfully, these days it is great politics. The swamp will have its revenge.

Ignorance in this decision abounds. One supporter of the proposed law is Mary Mazzio, director of a documentary film about online sex trafficking, who said that those who opposed SESTA are “clinging to a 1996 law” while dealing with a “21st century problem.” That is much like those who value speech free of government interference, free market and liberty in general clinging to that old 1789 law, the U.S. Constitution.

Bridge Span 18-1: One Vote That is One Big Step for Innovation

Tomorrow, the power of one vote could become very apparent. One vote could keep $1.56 billion in the pockets of taxpayers. One vote could unleash $275 billion in much needed infrastructure investment, creating 17,000 jobs. One vote? A new tax bill? An infrastructure plan? This is a vote by the FCC to modernize the federal review process for the country’s next generation of telecommunications – 5G.

The FCC will vote tomorrow on a proposal that would minimize the environmental and historic reviews for “small cell” sites under the National Environmental Policy Act (NEPA) and National Historic Preservation Act (NHPA). This proposed change acknowledges the reality that as opposed to the large antennas often seen dotting the countryside, these cells truly are small, around the size of a pizza box. Thousands and thousands of them will be needed in each city. The different size alone calls for smart thinking of reviews not slavish devotion to a regulatory scheme designed for completely different technology. As the backbone of 5G, slowing down deployment for something as small and ubiquitous as these cells would be wasteful and deny the promise of tomorrow’s network. Faster reviews allows for faster and less costly deployment of the cells.

FCC Commissioner Carr believes that this simple move will reduce deployment time by half and regulatory costs for small cell sites by as much as 80 percent. A report by Accenture released last week confirms that and more. This infrastructure reform could lead to massive investment in 5G and position the US to win the global race to 5G.

The report indicates that:
• The environmental and historic reviews cost nearly $10,000 per small cell, consuming 29 percent of current small cell deployment costs.
• The private sector will invest approximately $275 billion to upgrade America’s wireless service to 5G, particularly if the cost and conditions are right.
• The FCC order would save Americans $1.56 billion in just the next nine years, from 2018-2026.
• The FCC order’s cost savings alone would result in the creation of more than 17,000 jobs and build in excess of 57,000 small cells.

5g is not just a single system but rather is a system of systems that will work with previous technologies, and that will also require new infrastructure, including the small antennas, as well as new investments in fiber, cell towers and base stations. 5G will be a mash up of existing and new technologies including wi-fi and new bandwidths, including improvements in both wireless and necessarily wired connections to complete the communications loop. This ubiquity of high speeds, a hundred times faster than 4G, will enable more of everything valued in broadband and open the world to promised technological advancements such as surgery, tactile real-time feedback for robotics and self-driving vehicles. With so much to be coordinated, and demand ever increasing, artificial slow-downs due to government reviews that no longer fit the facts should not be tolerated.

The bottom line is that this one vote would lead to massive amounts of capital being freed up to spur investment, the enabling of more innovation, more broadband and leaving more money in the pockets of Americans. But such a move is not easy as large investments in infrastructure are needed and so eliminating unfit regulation is a critical, and smart, move. In this way, the FCC is pursuing infrastructure reform, moving now to spur real infrastructure spending on the infrastructure of today, and tomorrow.

Bridge Pier 17-2: Reply Comments to the FCC Re: Restoring Internet Freedom

Marlene H. Dortch
Secretary
Federal Communications Commission
445 12th Street S.W.
Washington, D.C. 20554

Re: Reply Comments, In the Matter of Restoring Internet Freedom, WC Docket No. 17-108

Dear Ms. Dortch:

While there are a number of serious issues to be considered in this docket, yet it seems that the biggest news, other than that the docket exists at all, has been the total number of comments made to the FCC. There is absolutely no doubt that we should cheer when more people are paying attention to what their government is doing, and trying to understand the policy issues that may have an effect on their lives. However, when the volume of comments has turned into a game we need to take stock of what is really going on.

Accountable to Congress, the FCC is to maintain standards for communications and media, essentially as an agency of specialized knowledge and ability in the communications and media space. The comment process has traditionally served as a means for the agency to benefit, in an open and public way, from a broad range of expertise and insights all to be better at the job they do. Of course, under the Administrative Procedure Act, the agency is mandated to provide the public this opportunity and must take such comments into account. But taking those comments into account means responding to actual arguments, not to simple political reactions. The logical conclusion is then that if thousands or millions of identical comments are sent in bulk with the same argument then the appropriate response is to address those with a single reply. But the comments in this proceeding have been called into question because analysis after analysis calls into question a great many of them.

Sadly, some seem intent on turning FCC comment opportunity into a silly game. The last round of comments about Title II led to the pro-Title II crowd counting every comment that was filed and claiming them all as supporting their position despite the fact that large portions actually opposed their position. Sophistry at best, but more appropriately described as a tale of whole cloth. Such antics are mere reactionary political tricks, thinly veiled bullying, just like the protests, the vulgar signs, orchestrated protests and showing up at the FCC Chairman’s house disrupting his family and neighbors on Mother’s Day. But this time ongoing fact-based analysis of the comments has been particularly disturbing.

As was reported in Recode, “The FCC is being flooded by fake, vicious comments as it begins debating net neutrality” (https://www.recode.net/2017/5/10/15612864/fcc-net-neutrality-bots-spam-comments-online-government-rules-ajit-pai). And related as reported by Fox Business, “John Oliver’s Net Neutrality Campaign Filled With Bots, Fake Comments, Racist Attacks Against FCC Chairman” and at the Daily Caller, ” John Oliver’s Net Neutrality Movement Rife With Fraudsters And Racists”
(http://dailycaller.com/2017/05/10/john-olivers-net-neutrality-movement-rife-with-fraudsters-and-racists/)

A detailed analysis by Consumer Action for a Strong Economy, of the comments filed by June 20 of this year found that at the time of the analysis there were five million comments filed. At that point, about 65 percent of the comments supported the repeal of Title II rules. A deeper study of the comments revealed that six percent were from international filers including France, Germany and Russia. Further, 12 percent did not include a physical address as required. More than 13 percent of the comments were as short, or shorter than a tweet, 140 characters. Not exactly “expert” analysis, perhaps more appropriately characterized as a political expression to be aimed at Congress.

Further, many of the generic comments have been generated via pop up screens on pornography sites that require users to fill out the form to get to the content of the site. It is a fair bet to that those “filing comments” were not real concerned about public policy or studying the issues. Certainly no one can credibly argue that these sorts of comments or mere expressions of political reactions should “count” even if such a count was relevant to the process. Such gaming of a system is not a legitimate expression of concern but rather is merely a cynical, engineered political attack.

Just today, a further study conducted by data analytics company Emprata was released that has actually exposed the mass comment process further. The study reports that while 21.766 million comments were filed, that 7.75 million appear to be attributed to FakeMailGenerator.com. That is to say that 36 percent of the comments were fake. Further, 9.93 million comments were duplicative.

The FCC must improve the comment process to address some of this blatant political gaming of the system. The FCC cannot be an agency that decides how to be an expert and what its expert opinion may be based on some number of carbon copy comments generated as fake mail, as a means for people to access pornography or from foreign jurisdictions. Some have found the process so concerning they have even suggested a government investigation into these comments.

As for those who tried to file a real objection, those might be best directed a political body designed to answer the will of the people, that is Congress. But if some tried to honestly express real concern about any FCC action, then it does beg the question if we should have regulations that are so difficult to understand that the average American must turn to rote comments to comment at all. Time for a gut check. Light touch, sensible regulations worked and will continue to work.

Truly, this is an issue that Congress must address. Congress is designed with the intent that it is the institution to reflect the will of the people. The FCC’s role has no such intent and the FCC no such design. We cannot afford to risk our future of health, communications, entertainment, work and education to those preferring social experiments above social success. Why would anyone even consider letting this go to court again, guaranteeing uncertainty for many more years while consumers suffer. Already the uncertainty is causing considerable damage.

As Roslyn Layton, a U.S. News and World report contributor has written,

“The reality is that Title II ignores and hurts underserved communities. It prohibits a free market for data which allows these individuals to enjoy free and reduced price content and offerings. It has cost the nation some $35 billion annually in lost participation from content-side actors and advertisers which would otherwise support internet access to these groups. It is also responsible for deterring the creation of some 750,000 jobs.

These lost investments are a detrimental blow to seniors, low-income and minority communities. We all know that to get more of a good or service, it needs to be invested in to achieve improvement and expansion. The same goes for broadband services. In order for the U.S. to continue improving its broadband networks, especially with regard to expanding into unserved as well as underserved communities, this industry needs investments to be coming in – not leaving. But through the heavy-handed overregulation Title II imposes, companies were afraid and/or less motivated to invest. The result? Diminished achievement in building out America’s broadband services.

This, of course, effects millions of Americans, but perhaps none more than poor, minority and senior populations. Low-income and minority families depend on broadband, often via mobile devices, to reach socially-beneficial digital services that can improve their lives. Think applications that offer services like networking, education and management of financial resources. For seniors, it’s equally destructive as limited broadband prevents these Americans – 48 million in 2015 – from accessing tools to monitor their health or communicate in real-time when there is an accident or emergency.”

Congress is the only entity that can instill the certainty, the permanence of supportive public policy for all consumers, clearly defining the authority of the FCC and the breadth of enforcement of it, or the FTC, has to enforce the principles of a free internet. Congress must clarify that the FCC must modernize its thinking. Clinging to 80-year-old constructs of regulation is lazy and unworthy in an industry defined by innovation, and in a country that used to take pride in leading and finding new frontiers.

Congress must get to work to do what is right for the American people and end the ongoing political games. Congress needs to do its job and draft laws knowing that regulators will bend and twist their language to seek greater and greater authority for actions unmoored from intention. Legislative proposal drafting needs to consider this and appropriately draft language that does not let the administrative state run amok. And then the FCC must faithfully apply the law, developing the practical applications, using its expertise.