The FCC voted yesterday 3-2 along party lines to promulgate new rules necessary to protect the “Open Internet.” At the core of the Commission’s action lies its decision to reclassify Internet services as a “telecommunications” instead of “information” services and regulate the services under Title II of the Communications Act of 1934. This reclassification, led by FCC Chairman Tom Wheeler, expands the FCC’s regulation of fixed wireline and mobile broadband Internet services as “common carriers.” This move is grounded in the notion that control of the Internet is too important not to be regulated, and it marks a dramatic reversal in the way Internet services have historically been regulated. The FCC has not yet released the Order, but the FCC’s statement, remarks made by the Commissioners, and the Fact Sheet distributed by the Chairman’s office on February 4th reveal what appear to be the core elements of the Commission’s action. Continue Reading
On December 12, 2014, Judge Sue E. Myerscough issued an epic 238-page order granting in part and denying in part cross summary judgment motions filed in United States of America, et al. v. Dish Network, L.L.C. (“Dish Network”). United States v. Dish Network, L.L.C., No. 09-3073, 2014 WL 7013223 (C.D. Ill. Dec. 12, 2014). Despite finding that Dish was liable for over 50 million phone calls, there was a silver lining for both Dish and future TCPA defendants.
Although it could be said that the FCC’s recent focus has been firmly fixed on the future, in particular IP-based communications (see, e.g., high-visibility proceedings involving the Open Internet, possible merger conditions in the Time Warner Cable-Comcast merger, the ongoing TDM to IP transitions, and the $44 billion (and counting) of bidding in the AWS-3 auction), in November the FCC proposed regulations to ensure that the transition to this IP-based world does not betray core values of the Communications Act: public safety, consumer protection, and competition.
Historic changes in relations between the United States and Cuba (that touch nerves in Hip-Hop and on Capitol Hill) and new U.S. sanctions against Venezuela may provide increased opportunities for U.S. business generally, and electronic communications technologies and infrastructure providers in particular. This week’s Cuba and Venezuela headlines, combined with recent and historic shifts in telecommunications and broadcasting markets in Mexico, on which we reported here, herald historic changes in Latin American electronic communications and infrastructure markets.
The FCC recently slid up its chair to the fiscal feast that is cyber security and data breach regulation and took a hefty piece of the pie. In late October the FCC announced that it charged a record $10 million fine against two telecommunication companies after the telecoms reportedly posted the private information of nearly 300,000 people in a manner making the people eligible for identity theft. Taking a cue from the Federal Trade Commission (“FTC”), the FCC action was not based on any new set of concrete regulations or laws established to give organizations a minimum bar for data protection, but rather on existing FCC powers established under the Communications Act of 1934. The action serves as good warning not only to communications providers that the FCC will be examining data breaches and, more expressly, data storage issues, but also that in the absence of clear cybersecurity regulations, federal agencies will take an expansive view of their existing authority to address cybersecurity-related incidents involving companies subject to their jurisdiction.
Say what you will about inside-the-Beltway leadership vacuums, political gridlock and the indecipherable output from the grey, grinding gears of our government agencies, but once in a while Washington actually gets it right. Or mostly right.
Courts that have confronted the application of the “prior express consent” requirement of the Telephone Consumer Protection Act, see 47 U.S.C. § 227 – a.k.a., the TCPA – have in the main taken their cues from and adhered to the policy set by the Federal Communications Commission (“FCC”) – the federal agency charged with implementing the statute. Recently, however, two federal district courts departed from the FCC’s guidance and injected new uncertainty into TCPA enforcement and confusion over the process for review of TCPA interpretations. In Mais v. Gulf Coast Collection Bureau, Inc., and Zyburo v. NCSPlus, Inc., the Southern District of Florida and the Southern District of New York respectively overrode jurisdictional challenges to adopt statutory constructions in conflict with settled FCC policy that the voluntary provision of a telephone number constituted sufficient prior express consent under the TCPA for contacting consumers through prerecorded calls. These courts declined to follow a 2008 declaratory ruling from the FCC holding that “prior express consent” is manifest where a consumer provided a telephone number as part of a transaction. Both decisions pose substantial challenges to the FCC’s authority and ability to coordinate national communications policy under the statute that it is charged with administering with the predictable result of creating a cloud of uncertainty for those who must comply with the TCPA across multiple jurisdictions.
In recent separate actions, the Public Utility Commission of Ohio (“PUCO”) and the Louisiana Public Service Commission (“LPSC”) adopted comprehensive pole attachment regulatory regimes intended to facilitate the deployment of broadband communications infrastructure, and level the competitive playing field for broadband providers. Each stressed the need for reasonable and non-discriminatory access, clear access processes and timelines, a single unified pole attachment rate and efficient dispute resolution procedures. And each made clear that its rules apply to “wireless” attachments as well as traditional wire-based attachments.
In a stunning ruling issued on July 15, 2014, the U.S. Court of Appeals for the D.C. Circuit held that review by the Committee on Foreign Investment in the United States (“CFIUS”) and the subsequent unwinding of the investment deprived the foreign investor of due process under the 5th Amendment to the U.S. Constitution. Ralls Corp. v. Comm. on Foreign Investment in the United States, No. 12-cv-01513 (D.C. Cir. Jul. 15, 2014) (a copy of the opinion is here). If upheld, the ruling may require fundamental changes in how CFIUS conducts its reviews and may enhance foreign investors’ ability to influence or challenge the outcome of a review.
In Thomas v. Taco Bell Corp., No. 12-56458 (9th Cir. July 2, 2014) the Ninth Circuit Court of Appeals recently held that Taco Bell, one defendant in a putative class action lawsuit alleging violations of the Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. § 227, could not be held vicariously liable for text messages that it did not send or authorize without proof of an agency relationship. The unpublished decision is one of the first by an appellate court to address the issue of vicarious liability following the Federal Communications Commission’s (“FCC’s”) 2013 declaratory ruling in Dish Network.