White House Prepared to Deliver Data Privacy Bill, if Asked

Asked whether social media has enabled a “Wild West” in need of regulation -- and about the administration’s approach to combating foreign interference -- White House Office of Science and Technology Policy Deputy Assistant to the President Michael Kratsios avoided both questions, directing the former to Slater and the latter to the Homeland Security Department. Pressed on domestic disinformation, Kratsios said OSTP wants to be a hub for the tech community, where Silicon Valley can share its views.

The White House plans to convene tech CEOs in Washington, Slater said. The administration has a positive relationship with Silicon Valley, said White House Deputy Chief of Staff-Policy Coordination Chris Liddell. He said tech executives are able to segregate issues where there’s disagreement with the administration.

Asked about the need for tech companies to have a presence in Washington, eBay CEO Devin Wenig said one of the biggest surprises as an executive was the amount of time needed for policy items. Other Silicon Valley executives are realizing this, too, he said, citing taxes, immigration and privacy.

Current debate suggests privacy is a fundamental human right, Wenig said, saying eBay doesn't want to hide data it collects about customers: The notion of privacy as a right is about control, with people fully informed and comfortable to freely offer their data. Users should know how data is used to improve products and services, Wenig said. He called the EU’s general data protection regulation a “good idea,” saying the U.S. needs to craft its own law without destroying internet companies.

​​​​​​​The internet has hurt “monopolies,” giving consumers more choices, Wenig said. Many physical stores offer lousy experiences, and the internet “should blow them up,” he said. The definition of antitrust is evolving, Wenig said, calling consumer pricing the “North Star” of such law. In the digital era, pricing should no longer be the only consideration, he said, arguing that service bundling can diminish competition.

​​​​​​​Three former FTC officials discussed antitrust law Thursday at an agency policy hearing.

Ex-GOP Commissioner and acting Chairman Maureen Ohlhausen warned against using antitrust enforcement to address privacy. Competition law offers, at best, a convoluted and indirect approach to addressing privacy concerns associated with big data, she said. Consumer data can be part of antitrust analysis, but the more-direct route to protecting privacy lies in consumer protection laws, she added. During the agency’s review of Facebook buying WhatsApp, she viewed related privacy concerns as a consumer protection issue, and the agency reminded Facebook of privacy obligations. Antitrust enforcement's goal is to ensure consumers aren't bearing unreasonable costs due to competition issues, said former Competition Bureau Director Bill Baer, now at Arnold & Porter.

​​​​​​​Companies are vigorously competing on privacy, said Microsoft Corporate Vice President Julie Brill, a former FTC Democratic commissioner, claiming the GDPR has major pro-competitive impacts. For cloud services, companies are competing to be the most trusted on data protection, she said. Contrary to the frequent argument smaller companies have the hardest time complying with the GDPR, she said medium-sized firms with legacy data systems have been the most affected. Small companies are the most agile, she said, arguing they can build according to the GDPR.

​​​​​​​FTC Chairman Joe Simons and Assistant Attorney General Makan Delrahim​​​​​​​ met officials from Mexico and Canada in Mexico City Thursday to discuss antitrust issues. “Coordination and continued dialogue are essential to ensure that vigorous competition benefits consumers in all three countries,” Simons said.