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House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade & Communications and Technology HearingJul 18, 2011 (Congressional Documents and Publications/ContentWorks via COMTEX) -- Welcome Chairman Genachowski, Assistant Secretary Strickling, and Commissioner Ramirez, and thank you for coming to testify about your respective agencies' work in the area of Internet privacy. As consumers are increasingly living their lives on the Internet--and even more on their smartphones--concern is growing over electronic communications privacy. Indeed, the Energy and Commerce Committee has taken an active role in investigating online privacy in the last few Congresses. Mr. Barton, for example, has sought out information from a number of companies about their practices regarding Internet advertising and consumers' online information. Members of the committee have reached out to Google about privacy concerns arising from "Google Buzz," as well as their collection of data from personal Wi-Fi networks, something the FCC is examining. Just this past April, Chairman Upton, Chairwoman Bono Mack, and I, along with our Democratic colleagues, also sent letters to several mobile operating system providers such as Apple asking hard questions about the location-based services they provide and about the privacy protections attached to those services. And both the Communications and Technology and the Commerce, Manufacturing, and Trade Subcommittees have had a number of hearings in recent years. We are having this hearing because we want to make sure Americans have adequate information regarding how data about them and their Internet use is collected, used, and shared, and to make sure their privacy is protected. But we must balance that need with the recognition that regulatory overreach may curb the ability of entrepreneurs to invest, innovate, and create jobs. At this point, it is not clear what legislation--if any--is necessary, but the hope is that this hearing will help shed additional light on that question. As we move forward, one thing stands out in my mind: Today's regime is neither competitively nor technologically neutral. Section 222 of the Communications Act gives the Federal Communications Commission broad authority to implement privacy protections for consumers of wireline and wireless telephone services. Section 222 also specifically calls out location-based services for regulation, but applies that regulation only to carriers and not providers of devices, operating systems, or applications. Other parts of the Communications Act give the Commission authority over cable operators and satellite television providers under a "prior consent" framework. In stark contrast, there are few if any communications privacy regulations governing web-based companies, even those that can access a user's search queries, emails, voice and video online conversations, web browser, and even operating systems. Why should a wireless provider that transmits data to and from a smartphone be subject to federal oversight, but not an operating system provider that has access to the exact same data? If we move forward with legislation, how do we create a fair playing field? Do we regulate web-based companies up? Do we deregulate traditional phone and video companies down? Do we create a unified regime at the FCC? At the FTC? Or do we have both agencies administer equivalent regimes over different subsets of companies or services? I look forward to hearing from our witnesses on what steps they are taking on electronic communications privacy, and what recommendations they have for us as we examine these issues. One more thing: Although we're here today to talk about Internet privacy, I want to echo Ms. Bono Mack's concerns about what happened in the United Kingdom. I will be interested in hearing from Chairman Genachowski if things like this have happened in the United States, whether it falls within the FCC's purview and, if so, what the FCC and other federal agencies typically do about it. Read this original document at: http://republicans.energycommerce.house.gov/Media/file/Hearings/Joint/071411%20CMT%20CT/walden.pdf |
