| Commissioner O'Leary
Addresses FTC Merger Policy |
1/17. Federal Trade Commission
(FTC) Commissioner Thomas O'Leary gave a speech
in Paris, France, titled "The Essential Stability of
Merger Policy in the United States". He reviewed the
history of merger policy in the U.S. He argued that the
popular conception about merger policy swinging like a
pendulum is incorrect. He argued that the Reagan revolution in
merger policy had been in the making since the late 1960s, and
that there was no 1990s counter reaction. Rather, he painted a
picture of continuity and stability in policy over the last 20
years.
O'Leary also reflected on the FTC's recent review of the
merger of AOL and Time Warner. He stated that "Had it
gone to trial, a case like AOL/Time Warner could also have
raised some interesting vertical issues relating to the
potential for strategic behavior, as well as issues of
non-price competition. The AOL/Time Warner transaction was a
vertical combination at three distinct levels: (i) media
entertainment of various kinds, in which one wing of Time
Warner had arguably the broadest portfolio in the world; (ii)
internet service, in which AOL was the dominant ``narrowband´´
provider with the arguable potential to become the dominant
``broadband´´ company; and (iii) cable services, for which
another wing of Time Warner was the dominant -- and often
exclusive -- provider in approximately 20% of the
country."
O'Leary continued that "Consistent with Chicago school
learning, the Commission focused on the possible horizontal
competitive effects of each of these three levels as a result
of the vertical combination. However, we considered not only
the possible impact of total foreclosure, but also the impact
of strategies short of foreclosure suggested by post Chicago
theories. In this connection, we considered whether
traditional ``market share´´ statistics could adequately
capture the potential for strategic deployment of Time
Warner's entertainment portfolio."
He concluded that "The interesting thing to me, as a
participant in the decision, was the sophistication of the
economic arguments advanced in support of, and in opposition
to, the merger. This was not a dispute between adherents of
``pre Chicago,´´ ``Chicago´´ and ``Post Chicago´´
theories; it was a dispute between people who largely shared
the same economic philosophy but had very different opinions
about what was likely to happen in fast moving industries with
little history to draw on for guidance."
O'Leary was appointed to the FTC in 1999 by former President
Clinton. He was previously a partner in the Washington DC
office of the law firm of Hogan
& Hartson, focusing on antitrust and trade practices
law. |
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| SEC Chairman Addresses
Regulation of Accounting |
| 1/17. Securities and Exchange
Commission (SEC) Chairman Harvey Pitt released a statement
titled "Regulation of the Accounting Profession". He
wrote that "Over the last decade or so, this Country's
vaunted system of disclosure, financial reporting, corporate
governance and accounting practices has shown serious signs of
failing to keep up with the needs of today's investors, our
economy, and new technology that makes rapid communications
not only possible but essential. The latest example – a most
tragic and unprecedented one – is the failure of
Enron." He stated that the SEC would "erect a system
that will restore public confidence in the integrity of the
accounting profession." |
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| NIPC Cautions Internet
Content Providers |
1/17. The FBI's National
Infrastructure Protection Center (NIPC) issued an advisory
in which it cautioned Internet content providers against
publishing in web sites "details on critical
infrastructures, emergency response plans and other data of
potential use to persons with criminal intent".
The advisory elaborates that "Search engines and similar
technologies have made arcane and seemingly isolated
information quickly and easily retrievable to anyone with
access to the Internet. The National Infrastructure Protection
Center (NIPC) has received reporting that infrastructure
related information, available on the Internet, is being
accessed from sites around the world." |
|
|
| State Dept. Official
Addresses Export Controls and China |
1/17. Vann Van Diepen, the Acting Deputy Assistant Secretary
of State for Nonproliferation
Controls, testified before the U.S. China Commission
regarding export controls and the PR of China. He stated that
"China is a focus of our export control policy because it
is a growing regional military power and because Chinese
entities have been involved in proliferation related
activities. The Administration applies strong export controls
on both dual-use items and munitions with the goal of not
contributing to nuclear, missile, CBW and other military
programs of concern in China or elsewhere."
He added that "Our policy also allows us to treat
flexibly areas where the technology is widely available as
commodity items or physically impractical to control, such as
low-level computers or encryption, thus helping U.S. companies
to compete in China on a level playing field. The
Administration continually reviews export control policies for
China and other countries in an effort to take into account
the realities of the market and technology." See, transcript. |
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|
| FTC and DOJ Postpone
Antitrust Reorganization Announcement |
| 1/17. Charles James, Assistant Attorney General in charge of
the Antitrust Division,
and Timothy Muris, Chairman of the Federal Trade Commission (FTC),
had scheduled a press conference for January 17 to
"unveil an agreement between the two agencies concerning
clearance procedures for antitrust investigations". See, notice.
However, the event was cancelled. |
|
|
| FCC Announces
Reorganization |
1/17. The Federal
Communications Commission (FCC) announced the adoption of
an order containing a reorganization plan. The FCC issued a
short release,
but not the order.
The FCC release states that a new "Media Bureau will be
responsible for the policy and licensing programs for media
services, including cable television, broadcast television and
radio. It will handle matters pertaining to multichannel video
programming distribution, broadcast radio and television,
direct broadcast satellite service policy, and associated
matters." It will be "comprised of staff and
functions from the current Mass Media Bureau and Cable
Services Bureau ..."
The FCC stated that a new "Wireline Competition Bureau
will be responsible for the policy programs of communications
common carriers and ancillary operations (other than wireless
telecommunications services). It will conduct rulemakings,
resolve waiver petitions and adjudications, determine the
lawfulness of carrier tariffs, act on applications for
authorizations, administer accounting requirements for
incumbent local exchange carriers, review carrier performance,
and administer reporting requirements." It will be
"comprised of staff and functions from the current Common
Carrier Bureau ..."
The FCC release states that the "International Bureau
will be realigned along functional lines, with consolidation
of the international policy and spectrum rulemaking functions,
and intergovernmental and regional leadership and planning
functions, which are currently distributed throughout the
Bureau."
The FCC release also states that the "Enforcement Bureau
will handle pole attachment complaints and some multichannel
video and cable television services complaints currently
handled in the Cable Services Bureau. It will also handle
common carrier audit functions." |
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| More News |
1/17. The U.S.
Court of Appeals (9thCir) issued its opinion
[PDF] in Brown
v. MCI WorldCom, a case regarding the filed
rate doctrine. William Brown filed a class action
complaint in the U.S.
District Court (CDCal) against MCI WorldCom alleging
overcharging for phone services. The District Court dismissed
his complaint, holding that his suit was barred by the filed
rate doctrine. (That is, no one may bring a judicial challenge
to the validity of a filed tariff, or to enforce any rate
other than the rate established by the filed tariff.) The
Appeals Court reversed, on the grounds that Brown's complaint
only seeks to enforce an existing tariff approved by the FCC.
1/17. Verizon filed a Section
271 application with the Federal
Communications Commission (FCC) to provide in region
interLATA services in the state of Vermont. See, Verizon
release. Verizon has already won approval to provide long
distance services in other states, including New York,
Massachusetts, Connecticut, and Pennsylvania. It also has
applications pending for Rhode Island and New Jersey.
1/16. The European Commission stated that it "has cleared
the acquisition by KPNQwest NV of the European operations of
Global TeleSystems Inc. (GTS), a US-based telecommunications
operator. The Commission's review has shown that the markets
concerned, which range from data communications services to
Internet connectivity and access, would remain sufficiently
competitive." See, release.
1/17. The FBI's National
Infrastructure Protection Center (NIPC) published in its
web site the January
issue [PDF] of Cyber Notes.
1/17. The U.S.
Court of Appeals (9thCir) issued its opinion
[PDF] in USA
v. Guagliardo, an appeal from a conviction and
sentencing in a pormography case. The noteworthy aspect of
this case is the Appeals Court's reasoning that copying files
onto a computer disk manufactured abroad satisfies the
interstate or foreign commerce element of the offense. Thomas
Guagliardo sold an Iomega disk to an undercover law
enforcement officer. He had copied onto that disk images that
constitute child pormography. Guagliardo argued that this
evidence did not meet the statutory requirement that it
"was produced using materials that have been mailed, or
shipped or transported in interstate or foreign commerce by
any means, including by computer." The prosecution argued
that since he copied the images onto an Iomega disk that was
manufactured in another country, the statute's interstate or
foreign commerce requirement was satisfied. Both the District
Court and the Appeals Court agreed with the prosecution. |
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| Friday, Jan 18 |
| 12:30 - 1:30 PM. The Progressive
Policy Institute (PPI) will host a lunch briefing to
release two papers that call on government to dramatically
increase the use of information technology to prevent
terrorist attacks and to facilitate coordination between
local, state, and national law enforcement authorities. The
speakers will be Robert Atkinson (VP of PPI), Shane Ham
(senior policy analyst, PPI's Technology & New Economy
Project), and John Cohen. RSVP to John Bray at 202 608-1247.
Location: 600 Pennsylvania Ave., SE, 4th Floor. |
|
|
| Monday, Jan 21 |
| Martin Luther King Day. The FCC will be closed. The National
Press Club will be closed. |
|
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| Tuesday, Jan 22 |
10:00 AM - 12:30 PM. The FCC's Office of Engineering and
Technology and Corning Incorporated will host a tutorial
on optical communications. See, FCC
notice. Location: FCC, Commission Meeting Room (TWC-305),
445 12th Street, SW, Washington DC.
12:15 PM. The Federal
Communications Bar Association's Common Carrier Practice
Committee will host a brown bag lunch. The speaker will be Dorothy
Attwood, Bureau Chief of the FCC's Common Carrier Bureau. RSVP
to Rhe Brighthaupt at rbrighth@wrf.com.
Location: Wiley Rein & Fielding, 1750 K St., NW, 10th
Floor Conference Room. |
|
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| Wednesday, Jan 23 |
The House reconvenes at 12:00 NOON.
The Senate reconvenes at 12:00 NOON.
9:00 AM - 5:15 PM. There will be a day long conference titled Broadband Outlook
2002 Conference. Location: Four Seasons Hotel, Washington
DC. The scheduled speakers include the following:
• 9:15 - 9:45 AM. Nancy Victory, head of the NTIA.
• 10:45 - 11:45 AM. Robert Pepper, Chief of the
FCC's Office of Plans and
Policy.
• 11:45 AM - 12:00 NOON. Dorothy Atwood, Chief
of the FCC's Common Carrier
Bureau.
• 12:00 NOON - 1:30 PM. Ken Feree, Chief of the
FCC's Cable Services Bureau.
12:15 PM. The Federal
Communications Bar Association's Global Telecommunications
Development Committee will host a brown bag lunch. Doreen
McGirr (Department of State) and John Giusti (FCC
International Bureau) will speak about preparations for the ITU
World Telecommunications Development Conference. RSVP to Kent Bressie.
Location: Wilkinson Barker
Knauer, 2300 N Street, NW, 7th floor, Washington DC. |
|
|
| Thursday, Jan 24 |
11:00 AM. The Cato Institute
will host a panel discussion titled "Eye in the Sky --
and Everywhere Else:
Do Biometric Technologies Violate Our Rights?" The
speakers will be Joseph Atick (Visionics Corp.), Marc
Rotenberg (EPIC),
Dorothy Denning (Georgetown University), and John Woodward
(RAND). A lunch will follow the program. Location: Cato
Institute, 1000 Massachusetts Avenue, NW, Washington DC.
12:15 PM. The Federal
Communications Bar Association's Mass Media Committee will
host a brown bag lunch. The speakers will be David Solomon,
Chief of the FCC's Enforcement Bureau, and Linda Blair,
Deputy Chief of the FCC's Enforcement Bureau. RSVP to kdole@npr.org. Location:
National Public Radio, 635 Massachusetts, Ave., NW, 1st Floor,
Washington DC.
2:00 PM. The Senate
Judiciary Committee will hold a hearing on judicial
nominations. Sen. Maria
Cantwell (D-WA) will preside. Location: Room 226, Senate
Dirksen Building. |
|
|
| People and Appointments |
1/17. Edmond Thomas will be appointed Chief of the
FCC's Office of Engineering
and Technology (OET). He has previously held jobs at Bell
Atlantic/NYNEX, AT&T, and a subsidiary of Philips
Electronics. See, FCC
release.
1/17. Allan Singer was promoted to SVP of Programming
of AT&T Broadband
and President of Satellite Services, Inc., a subsidiary that
manages the acquisition of video programming services. See, AT&T
release.
1/17. Frances Preston, P/CEO of BMI, renewed her contract
through 2004. See, BMI
release. |
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