Federal Communications Commission

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Huawei sues FCC over “unconstitutional” ban on the use of federal subsidies to buy its equipment

Huawei said today it is suing the Federal Communications Commission, asking to overturn a ban on carriers from using money from the Universal Service Fund (USF) to buy equipment from Huawei and ZTE.

The $8.5 billion USF supports the purchase of equipment to build communications infrastructure, especially in rural communities. Huawei is asking the United States Court of Appeals for the Fifth Circuit to overrule the FCC’s order, passed on Nov. 22.

Small carriers buy equipment from Huawei and ZTE because it is dependable and cheap. According to a Reuters report, some carriers are considering Nokia and Ericsson for replacements, but their equipment is priced less competitively.

During a press conference in Shenzhen today, Glen Nager, Huawei’s lead counsel for the lawsuit, claimed the ban goes beyond the FCC’s authority and violates the constitution. “The order fails to give Huawei constitutionally required due process before stigmatizing it as a national security threat, such as an opportunity to confront supposed evidence and witnesses, and a fair and neutral hearing process,” he said.

Huawei chief legal officer Song Liuping claims that FCC chairman and Ajit Pai and other commissioners did not present evidence to back its claim that Huawei is a security threat.

“This is a common trend in Washington these days. ‘Huawei is a Chinese company.’ That’s his only excuse,” Song said. He also claimed that the FCC ignored 21 rounds of “detailed comments” submitted by Huawei to explain how the order would harm businesses in rural areas, adding “This decision, just like the Entity List decision in May, is based on politics, not security.”

In March, Huawei also cited the Constitution in another lawsuit filed against the U.S. government arguing that a ban on the use of its products by federal agencies and contractors violate due process.

Huawei and ZTE were first identified as potential national security threats in 2012 by a U.S Congressional panel, but federal actions against Huawei and ZTE have intensified over the past year as the trade war between the U.S. and China escalates.

Earlier this year, it was placed on the U.S. Entity List and the Department of Justice announced it was pursuing several criminal charges against Huawei, including conspiracy to steal trade secrets. Huawei’s chief financial officer, Meng Wanzhou also faces fraud charges in New York. In response, Huawei has dramatically increased the amount it spends on lobbying in the U.S.

In China, Huawei’s announcement today about its FCC lawsuit was overshadowed by controversy about a former employee, Li Hongyuan who was arrested and detained for eight months after demanding severance pay. Li was arrested on extortion charges and released because of insufficient evidence and his treatment has triggered controversy and anger over the treatment of workers by Huawei and other tech companies.

Trump administration sues California over its brand-new net neutrality law

The Department of Justice announced on Sunday that it has filed a lawsuit against California to block its new net neutrality law, just hours after it was signed by governor Jerry Brown. The lawsuit was first reported by the Washington Post. Senior Justice Department officials told the newspaper it is filing the lawsuit because only the federal government can regulate net neutrality and that the Federal Communications Commission had been granted that authority by Congress to ensure states don’t write conflicting legislation.

In its announcement, the Justice Department stated that by signing California’s Senate Bill 822 into law, the state is “attempting to subvert the Federal Government’s deregulatory approach by imposing burdensome state regulations on the free Internet, which is unlawful and anti-consumer.”

Attorney General Jeff Sessions said “under the Constitution, states do not regulate interstate commerce—the federal government does. Once again the California legislature has enacted an extreme and illegal state law attempting to frustrate federal policy. The Justice Department should not have to spend valuable time and resources to file this suit today, but we have a duty to defend the prerogatives of the federal government and protect our Constitutional order.”

This is the latest of several legal showdowns between the Trump administration and California, the largest blue state.

Under Attorney General Sessions, the Justice Department has already filed separate lawsuits against California over immigrant sanctuary laws and a law meant to stop the Trump administration from selling or transferring federal land to private corporations. The Trump administration is also clashing with the state over environmental protection regulations.

Senate Bill 822 was introduced by Democratic Senator Scott Wiener to reinstate Obama-era net neutrality protections tossed out by the FCC last year.

Even though Washington and Oregon have also passed their own net neutrality laws, the outcome of the federal government’s battle with California will have ramifications throughout the country because the state’s new net neutrality law is the most stringent one so far, banning most kinds of zero-rating, which allows telecoms to offer services from certain providers for free.

As such, it has been the target of fierce lobbying by telecoms like AT&T and Comcast. While the FCC’s chairman Ajit Pai and telecoms argue that zero-rating allows them to offer better deals (Pai claimed in the Justice Department’s statement today that they have proven popular “especially among lower-income Americans,”) net neutrality advocates say it gives Internet service providers too much power by forcing users to rely on certain services, stifling consumer options and freedom of information.

Trump's FCC wants to let your cable company sell your data, because who cares about privacy?

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Under President Donald Trump, it seems like every department in the executive branch is racing to see who can undo regulations the fastest. And at the FCC? That means negotiating with cable companies about your data. 

Newly-installed Federal Communications Commission chairman Ajit Pai is working on stopping privacy rules from the it-feels-like-oh-so-long-ago Obama era, which require internet providers to get your explicit permission before selling or sharing your information, Business Insider reported

The rules were approved in October, and went into partial effect in January. But lucky for the Trump FCC, a provision requiring internet providers to “engage in reasonable data security practices” doesn’t take effect until March 2.  Read more…

More about Net Neutrality, Ajit Pai, Privacy, Federal Communications Commission, and Fcc

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