Congress Slow to Agree on Internet Regulation
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TECHNOLOGY SATURDAY, FEBRUARY 7, 2015 Congress slow to agree Sony’s next boss: on Internet regulation Who’s likely to Imposition of taxes could chill investment succeed Amy LOS ANGELES: Sony’s candidate to replace Amy Pascal WASHINGTON: Few members of ment at a time of exponential growth. But Feb. 26. Industry lobbyists say it’s as co-chairman of Sony Pictures is almost sure to come Congress appear willing to move toward a consumers also support the idea of an inevitable that one of the major providers from inside the company, insiders say, since there are bipartisan update to the 80-year-old, open Internet and “net neutrality,” in will sue and that the FCC is overreaching in already several executives on the Culver City lot with Depression-era law that top US regulators which service providers don’t manipulate its legal authority. It’s also unclear whether experience running studios. say gives them the authority to regulate or block web traffic. For years, the Federal Wheeler’s plan could be used by future the Internet. Communications Commission tried to rely FCC commissioners to justify price controls Here are the top insiders in line for the position-and That means that communications legis- on 1996 legislation to enforce an open and other heavy handed regulation. who isn’t likely to get the job. lation written in 1934, when Franklin D. Internet, but a federal court disagreed with Roosevelt was in office, will likely be used that approach and tossed out key portions Communications law Most likely to regulate how Internet service providers of the rule. “If Congress doesn’t rein in the FCC, Doug Belgrad: The Columbia Pictures President likely like AT&T, Verizon and Comcast do busi- On Wednesday, FCC Chairman Tom broadband providers will soon look and has the inside edge. He’s popular on Sony’s lot and has a ness with content providers like Google, Wheeler announced a plan that would put act like power companies and the old Ma firm grasp of finances and a talent for keeping budgets Netflix, YouTube and Amazon. Internet service in the same regulatory Bell telephone monopoly: stagnant, slow- in check-not one of Pascal’s strengths. He’s been at Sony “I don’t think there’s much appetite in camp as the telephone. Using Title II of the moving, and anything but innovative,” since 1989 and developed the warned Ryan Radia of the Competitive “Men in Black” franchise, Adam Enterprise Institute, a libertarian group. Sandler’s pictures, and teamed But a day after Wheeler’s announce- with MGM on the James Bond ment, there were few indications that law- series including “Skyfall.” makers were interested in striking a biparti- san deal to modernize communications See More: Sony’s Amy Pascal law. Democrats like Sen. Ed Markey, D- Stepping Down as Co-Chairman Mass., had already said they were satisfied Tom Rothman: The current with the Title II approach and declared it a head of TriStar Pictures joined in victory for consumers. Meanwhile, mid-2013 was co-chairman and Republicans like Sen. John Thune, R-S.D., Amy Pascal CEO of Fox and founded Fox and Rep. Fred Upton, R-Mich., accused the Searchlight in 1994. He is the White House of bullying the independent only Sony insider who has run one of Hollywood’s major regulatory agency when President Barack studios. But he has detractors in Hollywood for his brash Obama called on the FCC to apply Title II to management style and sometimes tense relationships Internet service. “The White House needs with talent. to get its hands off the FCC,” Upton declared Thursday in a statement. Less likely Thune and Upton have drafted legisla- tion that would enforce basic open Michael De Luca: The current production president of Internet rules, but would strip the FCC of Columbia Pictures, named in late 2013, has deep rela- other authority including its ability to help tionships with talent and produced “The Social Network” local municipalities to build their own and “Moneyball” at the studio before he joined the exec- NEW YORK: Federal Communications Commission (FCC) Chairman Tom broadband. That’s considered a non- utive track. Unlike Belgrad, he’s a virtual newcomer to Wheeler speaks during new conference in Washington. Internet serv- starter for Democrats and would be vetoed Sony and doesn’t have the same kind of institutional ice providers, including those selling wireless connections, would be by Obama. knowledge of the studio. He’s also a producer on “Fifty prohibited from slowing down or speeding up web traffic, under rules Lawmakers and their staff were expect- Shades of Grey” outside of the Sony umbrella. While proposed Wednesday by a top US regulator. —AP ed to take some time dissecting Wheeler’s head of production at New Line, he shepherded several proposal, including its technical implica- successful franchises such as “Austin Powers” and “Rush Congress for compromise, nor do I think 1934 Communications Act, the FCC would tions. Hour.” one’s necessary,” said John Simpson of be given broad authority to ban providers But after that, it’s unclear what incen- Consumer Watchdog, an advocacy group from manipulating web content. Wheeler tive Democrats would have to hash out a Unlikely that says using the 1934 Communications would allow for some business deals compromise with Republicans who want Jeff Robinov: He’s also on the lot with his Studio 8, Act gives US regulators flexibility by allow- among Internet players to manage data, to limit the FCC’s authority in general. Sen. which launched in 2014, and offers big studio experi- ing them to update rules if necessary. but those “interconnection” agreements Bill Nelson, the top Democrat on the ence, having overseen Warner Bros.’ film division for sev- “They pass a law and get really into the would be subject to FCC review. Senate Commerce Committee, and Rep. eral years. However, he likely can’t replace Pascal since specifics where frankly they don’t have the Wheeler says his approach won’t dis- Frank Pallone, the top Democrat on the he has made commitments to his investors, a group that expertise,” Simpson added. courage industry investments because House Energy and Commerce Committee, includes Shanghai-based Fosun International, that “Circumstances change, and they don’t he’ll withhold enforcement of sections of are seen as the most likely to work with would make it difficult for him to abandon his new pro- have the flexibility or inclination to go back the law that don’t apply to broadband, and their GOP counterparts. But they would and change it.” Many people agree too he won’t try to regulate industry prices. have to find support among their col- duction company. Studio 8 is an independent entity much regulation and imposition of taxes The proposal is likely to be approved by leagues who see Title II regulation as a with plans to make 24 films over five years. —Reuters on Internet commerce could chill invest- the FCC’s five-member commission on good approach. —AP White House asked to help on China cybersecurity rules WASHINGTON: US business lobbies called on the technology (ICT) sector,” said the letter, first report- US manufacturers would also suffer as the poli- White House this week for help to overturn new ed in the Wall Street Journal. cies would restrict cross-border data flows and cre- Chinese cybersecurity regulations they say would Cybersecurity has been a significant irritant in ate another market barrier for foreign financial hurt market opportunities abroad and jobs in the US-China ties, with both sides accusing the other of services and telecommunications companies said United States. In a letter sent to officials including abuses. U.S. tech groups wrote to the Chinese the letter, which was also signed by the National Secretary of State John Kerry and US Trade administration about the same policies on Jan. 28. Association of Manufacturers. Representative Michael Froman on Feb. 4, the US New cybersecurity regulations would force tech- American companies have enjoyed huge market Chamber of Commerce and 16 other US business nology vendors to Chinese banks to hand over opportunities in China, China’s Foreign Ministry lobbies said the new rules raised questions about secret source code and adopt Chinese encryption spokesman, Hong Lei, said in Beijing on Friday. China’s international trade commitments. algorithms. The policies would have a “significant “We will continue to guarantee the legal rights “(We) request your immediate action to work negative impact” on US ICT companies’ market of foreign enterprises in China, and welcome them with Chinese officials to reverse an alarming num- opportunities in China and ultimately crimp invest- to continue to break new ground in China’s market ber of troubling, new Chinese government policies ment in research and development back home, and jointly research and produce with Chinese impacting the information and communications hurting US jobs, the groups said. firms,” Hong told a regular news briefing. —Reuters.