Category: Microsoft

Congressional Internet Caucus—–Break Your Special Interest Ties

Today’s column by Washington Post reporter Jeffrey Birnbaum focusing on the sale of products and services at Congressional Internet Caucus events [“Soliciting for Good Citizens” reg. required] underscores why it’s time for the bi-partisan group to restructure its relationship with the Internet Education Foundation’s Advisory Committee.

This Congress is supposed to be breaking the ties between the powerful lobbying infrastructure and its political deliberations. Permitting the most powerful corporate media and telecom special interests to, in essence, determine the Caucus agenda is inappropriate (to say the least!). No group funded by the telecom and media industry should play a role as well in shaping the Caucus agenda. We hope the Net Caucus will clean house. Will Caucus co-chairs Senator Pat Leahy, Rep. Rick Boucher, and Rep. Robert Goodlatte do the right thing?

FTC Will Need to Investigate Microsoft-Doubleclick Deal

The potential sale of interactive ad serving giant Doubleclick, especially to Microsoft, should set off a serious investigation at the FTC. Both the Anti-trust and Consumer Protection divisions at the FTC need to examine such a deal. There has been distrubing consolidation of ownership and control within the interactive marketing technology industry over the last few years. We also are concerned about the implications to consumer privacy as Microsoft’s adCenter merges with Doubleclick’s considerable suite of products, such as DART.

Congressional Internet Caucus: It’s For Sale!

Who really runs the U.S. Congressional Internet Caucus–Members of Congress or the companies and special interests with the deepest checkbook? Take a look at how a forthcoming Congressional Caucus meeting on wireless issues is, literally, for sale. At the NetCaucus website for the event, chaired by Congressman Mike Honda [Chair of the Congressional Internet Caucus’ Wireless Task Force] is a pitch for “sponsorship.” Here’s how you can push your message before the Hill:

“Sponsorship Opportunities

We are seeking responsible industry players to help facilitate this important policy dialogue with a few key sponsorships. These promotional sponsorship options will help position your organization as a thought leader during the substantive discussions. Your assistance will help to bring together leading location-service providers, social networking sites, advertising service providers, wireless carriers, government officials and Congressional players will come together to start discussing the range of issues, policies and opportunities presented by this emerging marketplace.

Options include:
Dialogue pens: Distribute pens with your logo in conference bags and binders.
Dialogue breaks: We’ll announce your sponsorship of the morning continental breakfast or mid-morning coffee break and feature your logo or brand in the break area.
Dialogue Wi-Fi Hotspots: We will blanket the meeting area with wireless Internet access and include you as a promotional sponsor.
Post-Dialogue VIP Dinner End the conference on a high note and host a VIP event; choose from some of D.C.’s finest restaurants. ICAC staff will work with you to craft the perfect guest list.

Contact us for details & pricing.”

It’s time that the Caucus break its ties with the Advisory Committee and become a truly independent forum. Take a look at the Advisors!

Is Google Doing a Turn-about on Network Neutrality Law?

As reported by Drew Clark and others, high-ranking Google senior policy counsel Andrew McLaughlin told a Silion Valley crowd that “Net neutrality will ultimately be solved by competition in the long-run…Cutting the FCC out the picture would probably be a smart move. It is much better to think of this as an FTC or unfair competition type of problem.” It doesn’t appear at the moment that his view is official Google policy. But it underscores why we have never been confident that the corporate supporters of network neutrality, especially Microsoft, Yahoo!, IAC, and Google, could ultimately be counted upon to place the public interest before their own corporate futures. The Google’s and Yahoo!’s of the new media world are fearful of fostering public policies that would ultimately rein-in their efforts to collect huge amounts of personal data about each of us—so they can deliver ubiquitous interactive advertising and branded entertainment. As we’ve noted in the past, word from friendly policymakers is that Google and the coalition have done a terrible job lobbying for network neutrality rules. These developments underscore why those concerned about the future of the public interest and the digital era must quickly move beyond the policy realm. The real decisions about the quality and diversity of our digital media system in the short term will be primarily determined–sadly–in the marketplace.

We note that our friends at savetheinternet have written that Google still firmly supports network neutrality legislation, including the Dorgan/Snowe/Markey proposals. They have a quote from a Google spokesperson saying so. But we believe still that all the key work to promote net neutrality will have to be done by the folks outside the “gang of six.”

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Bill Gates Fails to Address Real Threats to Privacy–from Microsoft and other Interactive Advertisers

Here’s a link to the speech Mr. Gates gave at the CDT “gala” the other night. Note that Mr. Gates failed to address data collection related to marketing and advertising. Why? Because interactive advertising is Microsoft’s new business model. Mr. Gates and much of the industry wish to narrowly frame the debate, permitting both big business and government to have access to our data. Microsoft and its allies basically want a system where the default is data collection and microtargeting. What’s really needed are strong protections requiring an informed opt-in (which would require, for example, for Microsoft, Google, AOL, MySpace, etc. to precisely explain what is being collected and how it’s being used. Then ask for periodic affirmative permission).

The Center for Democracy and Technology hosted a “gala dinner” last night featuring Bill Gates. Billed as a “night for networking,” the event was to (self) honor CDT. CDT has long raised tremendous amounts of money from the very industries it is supposed to serve as a watchdog for. How can the organization really press Microsoft on privacy when it uses Mr. Gates to help the group sell tables at $5,000 each! Having a host committee filled with folks opposing network neutrality and safeguards for online advertising doesn’t help either. For a list, see here. Verizon, the Network Advertisers Initiative, Comcast, Progress and Freedom Foundation are just a few listed. There are some public interest folks as well. How can groups such as CDT act as truly independent advocates for the public interest in digital communications when their hands are out for such donations. Ask yourself.

A Post-script. CDT is part of a corporate coalition pushing for a national privacy policy that would not truly protect the public. It would permit Microsoft and the others to continue their unprecedented collection and abuse of our personal information. Note the huge loopholes–and disingenuousness–in this key section from the CDT/Microsoft backed “Consumer Privacy Legislative Fourm:

Consumer Privacy Legislative Forum Statement of Support in Principle for Comprehensive Consumer Privacy Legislation

The time has come for a serious process to consider comprehensive harmonized federal privacy legislation to create a simplified, uniform but flexible legal framework. The legislation should provide protection for consumers from inappropriate collection and
misuse of their personal information and also enable legitimate businesses to use information to promote economic and social value. In principle, such legislation would address businesses collecting personal information from consumers in a transparent manner with appropriate notice; providing consumers with meaningful choice regarding the use and disclosure of that information; allowing consumers reasonable access to personal information they have provided; and protecting such information from misuse or
unauthorized access. Because a national standard would preempt state laws, a robust framework is warranted.

About the Consumer Privacy Legislative Forum: The Consumer Privacy Legislative Forum was organized in the winter of 2006 to support a process to consider comprehensive consumer privacy legislation in the United States. The Forum began with a Steering Committee of companies eBay, Hewlett-Packard, and Microsoft, the consumer group Center for Democracy and Technology, and Professor Peter Swire of the Ohio State University..

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IAB: Worried that the Feds Will Do the Right Thing

Here’s a brief update on IAB. They are, notes ClickZ’s Kate Kaye, “…in the process of creating a Public Policy Council, to be comprised of Chief Public Policy Officers, General Counsels and IAB members. Tacoda Chairman Dave Morgan is heading up that operation, according to the IAB. Legislation and regulatory issues will have an enormous impact” on the interactive ad industry, said Rothenberg, noting, “We should be concerned, but we shouldn’t be crazy scared.”

Given that IAB’s new president Randall Rotherberg used to be a journalist (covering advertising for the New York Times and Ad Age), one would hope that he would be in the forefront of having his industry face up to facts. The basic business model is a threat to privacy and more. It’s gone beyond the time for “public policy councils” run by the industry’s spinmeisters. What’s needed is an honest admission of the problem, and support for a federal policy where consumers opt-in to all the techniques (after they are fully informed). That’s right. You need to get permission from individuals before you engage in behavioral targeting, retargeting, immersive rich media, etc. We imagine most people will consent. But it should be up to each person-not Ad Networks, IAB members, etc.

PS: Mr. Rothenberg: Don’t hide behind the press! We see that the IAB president quoted saying “The Interactive media industry is committed to striking the right balance between consumer protection and a consumer’s free online access to information and entertainment.” That’s not the real issue. No one is saying there shouldn’t be interactive advertising–or even the kind of personalized interactive practices the industry has embraced (with some notable exceptions). We understand the role which advertising plays to support the media. What we are saying is there have to be safeguards. In fact, ironically, I believe interactive ad practices done in the current stealth manner will help to undermine public confidence in the news media. The growing debate over online advertising is primarily about giving the public real information and control.

New Threats to Privacy: Interactive Ad Bureau (IAB) Hires D.C. Lobbyist

The interactive ad lobby–that includes most publishers of major newspapers, magazines and online outlets–is worried that consumer advocates might persuade Congress or the FTC to actually do something to protect digital privacy. Groups such as the Interactive Advertising Bureau (IAB) are alarmed that if consumers can actually control their data, the ability of digital marketers to collect, profile, track and target us will be threatened. So the IAB–which has a old and new media who’s who on its board–has brought in some political help. According to Online Media Daily:

“AIMING TO INCREASE ITS SWAY over government, the Interactive Advertising Bureau has opened a Washington, D.C. office and hired its first in-house lobbyist, Mike Zaneis…he and lobbyists from the Venable law firm have been talking with Congressional staffers on the IAB’s behalf. “We’ve been educating them on how the Internet works, and what the interactive advertising industry actually is and how it operates,” said Zaneis, who previously served as executive director of technology and e-commerce at the U.S. Chamber of Commerce.”

Presumably, the IAB will be working alongside DC lobbyists for Google, Yahoo!, Time Warner and the like to ensure that our digital media platforms provide a direct connection to Madison Avenue’s data warehouses. But they should be ashamed for creating a business model where direct access to our data across countless online media properties needs to be defended by special interest lobbying tactics.

PS: We just saw the ClickZ story. It’s very telling what the new IAB DC lobbyist said:
“…Zaneis says his initial plan of is, “Putting together a public policy council, developing positions on key issues, and leveraging the contacts that I have on the Hill, and in the FTC and other places. And then it’s a take no prisoners attitude to advocate for our members.”

Yahoo! Exec Dissses Network Neutrality

A Yahoo! News Vice-President just called the battle to restore network nondiscrimination to U.S. broadband a “tempest in a teapot.” That’s according to a blog post from Celia Wexler of Common Cause. Scott Moore, the Yahoo! exec. was also reported saying that “in a competitive media marketplace, any company that withheld content that people wanted would find those individuals choosing another cable or broadband provider.” It’s clear he doesn’t cover the media industry! We’re not surprised that high-ups at Yahoo! would see network neutrality as something less than important to fight for. Yahoo!, Google and Microsoft know they have the clout–and the business partnerships–to ensure their content and service gets carried by AT&T, Verizon, Comcast, and Time Warner. We have also heard–via the Hill–that Google has largely been missing in action when it comes to the net neutral fight.

Ultimately, the big online companies will make their deal with NCTA and USTA. That’s why we urge readers not to believe that network neutrality is some kind of magic digital bullet. Having neutrality alone will not give us the democratic digital media system the country requires. Nor is it certain that Congress will pass anytime soon any policy that truly democratizes the country’s broadband infrastructure. NGO’s and others will still need to build a system, via the marketplace, that places the public interest before profits (although with sites and services that can still makes lots of money to help make sustainable civic expression and social justice work).