Consumer protection for artificial intelligence systems is a lot harder for the FTC without clear visibility into system decision-making, said Electronic Frontier Foundation Tech Projects Director Jeremy Gillula Tuesday during the agency’s seventh policy hearing. Some companies have made an effort, but it’s an ongoing problem, he said. Consumers and researchers might not necessarily need every detail about machine learning and artificial intelligence decisions, said Google Brain Team Senior Staff Research Scientist Martin Wattenberg. Google isn't giving “the full matrix of every weight in the neural network, but we’re giving them information that’s useful at the level that they want in terms of a concept that they’re actually interested in.” Wattenberg emphasized progress made in coming up with ways to understand these systems: “They no longer need to be considered black boxes.” Google recommended practices for fair artificial intelligence use, which covers interpretability, privacy and security. Computer & Communications Industry Association Competition and Regulatory Policy Director Marianela Lopez-Galdos questioned whether laws that focus on consumer welfare are sufficient to address machine learning issues.
Karl Herchenroeder
Karl Herchenroeder, Associate Editor, is a technology policy journalist for publications including Communications Daily. Born in Rockville, Maryland, he joined the Warren Communications News staff in 2018. He began his journalism career in 2012 at the Aspen Times in Aspen, Colorado, where he covered city government. After that, he covered the nuclear industry for ExchangeMonitor in Washington. You can follow Herchenroeder on Twitter: @karlherk
The FTC defended its ability to protect consumer privacy, noting limitations. In comments to NTIA (see 1811090050) released Tuesday, FTC staff cited the lack of civil penalty authority, broad rulemaking authority and ability to take action against nonprofits and common carriers. The Children's Online Privacy Protection Act is limited because it doesn’t address offline data or data about children, staff said. The agency “supports a balanced approach to privacy that weighs the risks of data misuse with the benefits of data to innovation and competition,” it said, with 5-0 support from commissioners.
Civil penalty authority could encourage companies to take data security seriously, an incentive to increase investment, said FTC Consumer Protection Bureau Director Andrew Smith Friday at a Free State Foundation event. He was asked about the agency’s recent no-fine settlement with Uber (see 1810260040). It’s very difficult to show the “causal link” between a security breach and harm to consumers, he said, but some commissioners believe there’s a “systemic underinvestment” in data security.
Industry groups warned NTIA against pushing privacy policies that restrict data collection. Consumer groups argued for more FTC authority and higher standards on data collection consent. Friday was NTIA’s deadline for comment on the administration’s privacy principles effort. The agency will make them publicly available this week, so we asked stakeholders what they filed, and others released them. Some said they were working on them Friday, and others said they don't plan to file.
BMI and ASCAP consent decrees let companies like Amazon, Facebook, Google and Netflix not pay songwriters what they deserve (see 1810010031), and it’s good DOJ is exploring these decrees, National Music Publishers Association CEO David Israelite said in a Technology Policy Institute podcast. Songwriters “should have a right to negotiate the price of what they create in a free market, and the consent decrees prevent them,” he said in a conversation TPI promoted this week that included RIAA President Mitch Glazier. Thursday, the Internet Association didn’t comment. The Music Modernization Act’s Mechanical Licensing Collective (see 1809180059) will revolutionize how the music industry treats data, Israelite said. The MLC establishes a royalty payment database governed by a board of 10 publishers and four songwriters with oversight from the Copyright Office. It’s unique that the industry won’t “treat the ownership information as proprietary or confidential but rather as public information that is designed to get proper payment,” Israelite said, noting sound recordings will be publicly accessible for three years when the proper owner can’t be found.
The White House will draft data privacy legislation if asked, said National Economic Council Special Assistant to the President Abigail Slater Thursday. Regulating social media is a conversation worth having, she told a Washington Post event. Officials should weigh Europe’s approach to internet regulation while injecting American standards and values, said Slater. President Donald Trump said Wednesday he’s open to working with Democrats to regulate social media (see 1811070053).
Having oppositely controlled chambers of Congress bodes well for bipartisan negotiation on regulating online privacy, tech trade group executives told us Wednesday. Industry allies agreed Republicans and Democrats remain far apart on specific policy. President Donald Trump in a post-election news conference said he’s open to working with Democrats on regulating social media companies, though he called Silicon Valley’s alleged anti-conservative bias a “serious problem.”
Chairman Joe Simons recused himself from the FTC’s Qualcomm case in California federal court claiming anti-competitive patent licensing behavior (see 1809190041), an agency spokesperson said Tuesday. The spokesperson declined to give a reason. Simons previously was a partner at Paul Weiss, which has represented Qualcomm. Simons’ recusal divides the commissioners evenly along party lines, and the commission wouldn't act in a 2-2 vote. Documents Simons submitted to the agency disclosing his previous clients and investments don't list any Qualcomm entities. A federal judge on Tuesday denied a joint request from the FTC and Qualcomm to delay the ruling to allow for settlement talks.
Two tech trade group representatives played down the value of consumer data during Tuesday’s FTC policy hearing (see 1810310052). Another industry official argued too much focus is on drawbacks of big-data collection, not enough on benefits.
The Supreme Court will hear argument Nov. 26 in Apple v. Robert Pepper, with implications for app stores. The conservative majority figures to favor Apple interests, stakeholders told us. Justices will decide whether Apple customers can sue for antitrust damages in a case, docket 17-204 (see 1810100058), stemming from a lawsuit claiming Apple has a monopoly through its App Store. Apple, which collects a 30 percent commission on apps purchased, limits iOS users to installing apps through that store, unless they jailbreak their phones, voiding warranty. Pepper argued this anticompetitive model lets developers pass added costs onto users. App developers benefit greatly from the App Store, given the booming app economy, and the liability and security protections the store offers, Pepper argued, making it unlikely developers will challenge Apple’s model.