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Will FCC Allow Google to become the Fox that Guards its AllVid Henhouse?

A fox should not be allowed to guard a henhouse, unless the farmer wants the fox to eat all the hens.

Neither should the world’s fiercest corporate opponent of copyright, Google, be allowed to be the FCC’s technological guard of $200b worth of annual video programming revenues, in the FCC’s AllVid Set-Top Box rulemaking, unless the FCC wants Google-YouTube and others to be able to pirate the nation’s video-programming property without paying for it.

NetCompetition Statement & Comments on FCC’s Anticompetitive AllVid NPRM

FCC’s AllVid NPRM Is Anticompetitive, Anticompetitive, Anticompetitive

 

WASHINGTON D.C. – The following quotes are based on NetCompetition’s submitted comments on the FCC’s AllVid NPRM and may be attributed to Scott Cleland, Chairman of NetCompetition:

“Think for a moment. Would anyone think it “pro-competitive” if a government agency mandated an “Unlock the Big Box Stores” ruling so that WalMart, Target, or Best Buy could no longer install effective doors, locks, security guards or anti-theft devices on their store perimeters to protect the value of their inventory, all so that Google, Amazon, or eBay could take it for free and then profit from selling it online?”

“The companies that comprise the ~$200b pay TV industry are the video programming functional equivalent of Big Box stores, and the FCC’s AllVid NPRM is the functional equivalent of a looters pardon.”

“Consider how the FCC’s “Unlock the Box” looters’ mantra is profoundly anticompetitive and destructive.

AllVid Deja-Vu: Google-YouTube’s Forcing Video to be Open to Piracy Again

The FCC’s AllVid proposal is déjà vu. We have seen Google-YouTube’s piracy-as-negotiating-leverage MO in action before.

Top Takeaways from Google’s Appeals Court Loss to MS State AG Jim Hood

For the last year, Google was above state law in the U.S.; fortunately, it no longer is.

The U.S. Fifth Circuit Court of Appeals just ordered dismissal of the Machiavellian preliminary injunction Google won in Federal Court over a year ago that squashed a 2014 Mississippi State Attorney General subpoena and state law enforcement investigation of Google’s alleged facilitation of “dangerous and illegal activities through its online platforms.”

Forty State AGs backed MS AG Jim Hood in Court because the Federal injunction that Google won effectively neutered all State AGs from investigating or prosecuting Google for most any alleged Google violation of most any State consumer protection law.

Simply, the Appeals Court ruled that Google faced no “irreparable injury” in having to comply with the MS State AG’s broad subpoena, and that “[T]he normal course of state criminal prosecutions cannot be disrupted or blocked on the basis of charges which in the last analysis amount to nothing more than speculation about the future.”

The Obvious Google-Android Antitrust Case the DOJ & FTC Are Ignoring

Awkward.

EU antitrust chief Margrethe Vestager -- who formally has charged Google with abusing its search monopoly, and who also is formally investigating Google’s alleged contractual tying of its monopoly search app to create a monopoly Android operating system -- speaks Friday at the ABA antitrust spring meeting in D.C. on a panel with DOJ antitrust chief William Baer and FTC Chairwoman Edith Ramirez, at the awkward juncture when the EU is escalating its antitrust prosecution of Google while America’s DOJ and FTC apparently are ignoring the obvious antitrust case they know they have against Google.

In a nutshell, the obvious antitrust case against Google is this: the DOJ and FTC have long established Google is a monopoly demanding antitrust vigilance; U.S v. Microsoft settled that a licensed OS market definition excluding Apple is reasonable and that tying a monopoly OS to a strategic app harms consumers and innovation; Google’s contractual tying of its monopoly search to a nascent Android OS is a mirror image of what DOJ already proved monopolistic in U.S. v. Microsoft; Google apparently has monopolized mobile search and search advertising and prompted its only competitors, Yahoo and Microsoft Bing, to give up seriously competing with Google; and now the potential harms to consumers and innovation are escalating as Google is attempting to extend its Android mobile OS monopoly economy-wide to monopolize the Internet of Things.

FCC Unequal ISP Privacy Policy Is Unequal Protection & Unequal Opportunity

The FCC’s just-passed, 3-2 unequal ISP privacy policy spotlights how badly the FCC has lost its way.

In prioritizing the equality rights of inanimate digital bits above the equal protection and equal opportunity rights the American people enjoy under our constitutional republic, the FCC is discriminating in favor of open cronyism over equal consumer protection and equal competitive opportunity.

Moody’s Investors Service has done everyone a service in exposing the FCC’s Title II reclassification and privacy policy for what it really is – arbitrary unequal treatment under the law.

When the FCC proposed these ISP privacy rules three weeks ago, Moody’s called the FCC’s proposal as it saw it in a Sector Comment March 14 entitled: “FCC’s broadband privacy proposal credit negative for linear TV and wireless providers – Over half a trillion in rated debt affected.” 

AllVid: FCC-Sponsored Piracy Would Extend Google’s Monopoly & Monopsony

Google is the only major corporation publicly pressuring the FCC to require that all owners of proprietary video programming rights give away their valuable video property for free to Google and other companies online.

It is telling that to date no other major corporation has been willing to risk their brand publicly advocating for FCC-sponsored piracy to forcibly redistribute corporate wealth from Big Content to FCC-BFF-Google.

The evidence in this analysis will show that Google is the only entity in the world that has both the long-stated mission, i.e. “to organize the world’s information and make it universally accessible and useful,” and the global monopoly power and corporate functional capabilities to fully commercially exploit this FCC-sponsored piracy proposal.

Why Google Can’t Criticize EU Much for Ruling it Dominant & Anticompetitive

In the next several weeks, expect the EC’s Competition Directorate to decide that Google is in fact dominant with >90% share of Internet search in Europe and that Google has abused its search dominance by biasing its own Shopping service over competitors. It also could formally charge Google for abuse of its search dominance in contractually tying Google Search and other search-driven apps like Maps, YouTube, etc. to Android to extend its search dominance to mobile search and to the operating system market where Android now owns >80% share.

In taking a most extreme and ultimately indefensible legal and PR position, that the EU antitrust case is “wrong as a matter of fact, law and economics,” Google has painted itself into a corner, PR-wise and politically, much more than many appreciate. Why?

FCC’s AllVid Proposal Is Really The Great Google Ad Grab

While the PR cover story of the FCC’s AllVid proposal may be about more consumer choice and competition to reduce the cost of cable set-top boxes, don’t be fooled.

In announcing it, the FCC Chairman admits there’s already consumer choice aplenty: “American consumers enjoy unprecedented choice in how they view entertainment, news and sports programming. You can pretty much watch what you want, where you want, when you want.”

And the AllVid proposal is not about saving consumers money.

If it were, the FCC would not be shunning the obvious, best and cheapest solution of replacing the need for a set-top box entirely, by modernly and naturally transitioning them to the sector norm of easily-downloadable, cheap/free apps.

Alphabet’s Amoral Attitude and Acts

Summary

Does Alphabet Inc. -- arguably the world’s largest organization, with two billion plus users, most all the world’s information, most of the world’s top applications, limitless global ambitions, limited accountability, and self-proclaimed “don’t be evil” moral authority -- actually “do the right thing” as Alphabet publicly professes?  (Alphabet Inc. is the restructured company formerly known as Google Inc.)

If it matters to people that their leaders do what they say, to governments that corporate leaders obey the law, to the media that public leaders are honest to the public, and to the public that the leaders they trust are trustworthy, then this attempt to bring accountability to Alphabet-Google’s near unprecedented leadership, branding, and investment value has merit.

Accumulating evidence of Google’s amoral unaccountability certainly has merit and value to EU law enforcement and to U.S. State Attorneys General law enforcement, because it goes to whether or not Alphabet can be trusted to operate its business honestly and legally on its own; and to be trusted to make honest representations to law enforcement and the public.   

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