Federal Regulators Need More Time to Vote on Set-Top Boxes

The FCC delayed its vote yesterday on the proposal to unlock cable set-top boxes. FCC members “could not agree on a set-top box proposal that requires cable operators to provide their shows and movies on alternative devices rather than just on a cable box,” reports The New York Times. “The plan was intended to bring more competition to the television industry and liberate consumers from an average of $231 in annual cable box fees.” While the proposal will be considered for a future vote, FCC chair Tom Wheeler said commissioners needed additional discussions. However, with an upcoming change of administration, Wheeler’s window to adopt the regulation may be dwindling. Continue reading Federal Regulators Need More Time to Vote on Set-Top Boxes

Samsung Formally Recalls Galaxy Note7 Phones in the U.S.

In response to 92 reports of batteries overheating, in some cases leading to explosions and fires, Samsung and the Consumer Product Safety Commission have issued a formal recall of the Galaxy Note7. “Consumers have the option of a refund or a replacement device with a new battery,” reports Recode. “Samsung is offering customers $25 extra if they stick with either a new Note7 or opt to exchange their phone for a Galaxy S7 or S7 Edge.” Replacement devices are expected to be available in retail stores by September 21. Less than 15 percent of the one million Note7 phones sold in the U.S. have been returned since Samsung launched the exchange program two weeks ago. Continue reading Samsung Formally Recalls Galaxy Note7 Phones in the U.S.

American Airlines Switching to Satellite-Based Wi-Fi via ViaSat

One hundred new American Airlines Boeing 737 MAX planes, slated for delivery in September 2017, will be outfitted with ViaSat’s satellite-powered Wi-Fi, marking the first time that this Carlsbad, California-based company has cracked the market dominated by the Chicago-based Gogo. American Airlines, the world’s largest carrier, is converting much of its fleet from Gogo’s ground-based Wi-Fi to faster satellite-based technology, but will also use Gogo’s new 2Ku satellite service on 134 Airbus Group aircraft. Continue reading American Airlines Switching to Satellite-Based Wi-Fi via ViaSat

European Commission Poised to Issue Major Fine to Google

The European Commission in Brussels is at the end of its seven-year investigation of Google and preparing to issue a record-breaking fine, expected to be about 3 billion euros ($3.4 billion). To date, the toughest fine the Commission has issued was 1.1 billion euros, levied at Intel. Inside sources say the announcement will likely come before the summer break, possibly as early as next week, and that the final amount hasn’t been decided upon, with the maximum possible at around 6.6 billion euros, or a tenth of Google’s total annual sales. Continue reading European Commission Poised to Issue Major Fine to Google

Popular Payment Service Venmo Under Federal Investigation

According to an SEC filing, PayPal-owned peer-to-peer payment service Venmo is under investigation by the Federal Trade Commission to determine whether the company “engaged in deceptive or unfair practices in violation of the Federal Trade Commission Act.” PayPal received a Civil Investigative Demand (CID) from the FTC on March 28. “The CID could lead to an enforcement action and/or one or more consent orders,” explains PayPal, “which may result in substantial costs, including legal fees, fines, penalties, and remediation expenses and actions, and could require us to change aspects of the manner in which we operate Venmo.” Continue reading Popular Payment Service Venmo Under Federal Investigation

Regulators Set Conditions for Approval of Charter-TWC Deal

While federal regulators are closer to approving the Charter Communications acquisitions of both Time Warner Cable and Bright House Networks, the FCC and Justice Department have introduced conditions designed to protect streaming video companies and help provide affordable broadband services for low income households. The $71+ billion deal would make Charter the second-largest broadband service provider in the U.S. with about 19.4 million subscribers, and the nation’s third-largest cable TV provider with 17.4 million customers. Continue reading Regulators Set Conditions for Approval of Charter-TWC Deal

European Commission Enacts Data Protection Regulations

The European Commission, the EU’s executive arm; the European Parliament and member states just approved stringent data protection regulations, considered there to be of equal importance to freedom of expression. The rules, slated to go into effect by early 2017, will give individuals more power over how their information is collected and managed, as well as make data protection regulations consistent across the EU. Officials have been meeting since summer 2015 to hammer out rules that all 28 members could agree to. Continue reading European Commission Enacts Data Protection Regulations

Nokia Initiates Share-Exchange Offer in Alcatel-Lucent Merger

Initiating its planned merger with Alcatel-Lucent, first announced in April, Nokia began its share-exchange offer with that company’s shareholders in Paris and London. Nokia is paying €15.6 billion ($16.6 billion) for Alcatel-Lucent, with the idea that combining the two companies’ expertise in telecom and Internet gear will help it better compete in a global economy. Nokia not only faces competition from new players such as China’s Huawei Technologies but from Ericsson, which just struck an alliance with Cisco. Continue reading Nokia Initiates Share-Exchange Offer in Alcatel-Lucent Merger

FCC Calls for Safeguards as Telecoms Upgrade Copper to Fiber

U.S. regulators have proposed a new rule that would require major carriers such as Verizon and AT&T to maintain their current levels of service while they update aging copper networks with new fiber. The FCC’s proposal would require that the big carriers offer “reasonably comparable” services and conditions for their new technologies as well, in an effort to prevent an immediate impact on smaller carriers. The commissioners are scheduled to vote on the proposed rule next month. Continue reading FCC Calls for Safeguards as Telecoms Upgrade Copper to Fiber

FTC Examines Apple’s 30 Percent Charge for Rival Music Apps

Antitrust regulators are reportedly taking a preliminary look at whether Apple’s business model for selling streaming music apps may be illegal under current antitrust law. While the company now has its own music streaming service, Apple also takes a 30 percent cut of in-app purchases through its App Store for competing services such as Jango, Rhapsody and Spotify. According to industry sources, the Federal Trade Commission has not announced a formal investigation, but has started to look into the issue by meeting with concerned parties. Continue reading FTC Examines Apple’s 30 Percent Charge for Rival Music Apps

FCC Commissioner Says the Internet is Not a Human Right

Speaking before the Internet Innovation Alliance about the appropriate role of regulators in a growing broadband economy, FCC Commissioner Michael O’Rielly suggested that the Internet is not a necessity or human right, as many tech leaders have suggested. “It is important to note that Internet access is not a necessity in the day-to-day lives of Americans and doesn’t even come close to the threshold to be considered a basic human right,” he said. “I am not in any way trying to diminish the significance of the Internet in our daily lives.” Continue reading FCC Commissioner Says the Internet is Not a Human Right

Apple Considering Change to iTunes Charge for App Partners

Apple charges app publishers 30 percent of subscription amounts initiated through apps, the same percentage it collects for in-app revenue. Some companies have been working around the charge by not enabling subscriptions through their mobile iOS app or charging consumers more. However, the company is reportedly considering a change to the agreement, but only for subscriptions that are delivered via Apple devices rather than the App Store. Such a revision suggests that only services offered through Apple TV would likely be exempt from the 30 percent fee. Continue reading Apple Considering Change to iTunes Charge for App Partners

France’s Iliad Concludes its Ambitious Pursuit of T-Mobile US

French telecommunications company Iliad has ended its pursuit of American wireless provider T-Mobile US. While T-Mobile was in talks about a merger with Sprint to launch a more competitive rival to AT&T and Verizon Wireless, Iliad was ambitiously attempting to buy control of T-Mobile for $15 billion (an offer worth nearly as much as its own market value). Yesterday, Iliad issued a statement that it was ending its efforts, despite having increased the proposed acquisition stake and price. Continue reading France’s Iliad Concludes its Ambitious Pursuit of T-Mobile US

AT&T to Pay $105 Million to Settle Accusations of ‘Cramming’

AT&T will pay $105 million to settle accusations that it billed hundreds of millions of dollars in bogus third-party charges to its wireless subscribers. The settlement is the latest in a number of similar moves by regulators to curtail mobile “cramming” — the practice of charging fees for third-party services that subscribers did not order. A similar case against T-Mobile is still pending. The AT&T settlement marks the largest to-date against a specific carrier for cramming. Continue reading AT&T to Pay $105 Million to Settle Accusations of ‘Cramming’

Senate Majority Leader Offers Support for Open Internet Rules

Senate Majority Leader and Nevada Democrat Harry Reid explained in a letter Monday that he would support “any Open Internet rules” passed by federal regulators. FCC Chairman Tom Wheeler proposed rules that would allow companies such as AT&T, Comcast and Verizon to charge more for faster Internet access. Meanwhile, opponents view such arrangements as a direct threat to net neutrality. Reid’s letter could help provide cover for the FCC in regulating Web services similar to a utility. Continue reading Senate Majority Leader Offers Support for Open Internet Rules