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Federal Communications Commission repeals net neutrality rules

By David Shepardson

WASHINGTON (Reuters) – The U.S. Federal Communications Commission voted along party lines on Thursday to repeal landmark 2015 rules aimed at ensuring a free and open internet, setting up a court fight over a move that could recast the digital landscape.

The approval of FCC Chairman Ajit Pai’s proposal marks a victory for internet service providers like AT&T Inc, Comcast Corp and Verizon Communications Inc and hands them power over what content consumers can access.

Democrats, Hollywood and companies like Google parent Alphabet Inc and Facebook Inc had urged Pai, a Republican appointed by U.S. President Donald Trump, to keep the Obama-era rules barring service providers from blocking, slowing access to or charging more for certain content.

Consumer advocates and trade groups representing content providers have planned a legal challenge aimed at preserving those rules.

The meeting was evacuated before the vote for about 10 minutes due to an unspecified security threat, and resumed after sniffer dogs checked the room.

FCC Commissioner Mignon Clyburn, a Democrat, said in the run-up to the vote that Republicans were “handing the keys to the Internet” to a “handful of multi-billion dollar corporations.”

Pai has argued that the 2015 rules were heavy handed and stifled competition and innovation among service providers.

“The internet wasn’t broken in 2015. We weren’t living in a digital dystopia. To the contrary, the internet is perhaps the one thing in American society we can all agree has been a stunning success,” he said on Thursday.

The FCC voted 3-2 to repeal the rules.

Consumers are unlikely to see immediate changes resulting from the rule change, but smaller startups worry the lack of restrictions could drive up costs or lead to their content being blocked.

Internet service providers say they will not block or throttle legal content but that they may engage in paid prioritization. They say consumers will see no change and argue that the largely unregulated internet functioned well in the two decades before the 2015 order.

(Reporting by David Shepardson; Writing by Chris Sanders; Editing by Jonathan Oatis and Meredith Mazzilli)

Federal Communications Commission set to reverse net neutrality rules

By David Shepardson

WASHINGTON (Reuters) – The U.S. Federal Communications Commission is expected on Thursday to rescind net neutrality rules championed by Democratic former President Barack Obama that barred the blocking or slowing of internet traffic.

The 2015 rules barred broadband providers from blocking or slowing access to content or charging consumers more for certain content. They were intended to ensure a free and open internet, give consumers equal access to web content and prevent broadband service providers from favoring their own content. Chairman Ajit Pai proposes allowing those practices as long as they are disclosed.

Internet service providers clashed with Democrats and celebrities like “Star Wars” actor Mark Hamill ahead of a vote this week as the battle over net neutrality stretched from Hollywood to Washington.

Protesters including some members of Congress are expected to rally outside the FCC in Washington before the vote.

Pai’s proposal marks a victory for big internet service providers such as AT&T Inc, Comcast Corp and Verizon Communications Inc that opposed the rules and gives them sweeping powers to decide what web content consumers can get. It is a setback for Google parent Alphabet Inc and Facebook Inc, which had urged Pai not to rescind the rules.

Michael Powell, a former FCC chairman who heads a trade group representing major cable companies and broadcasters, told reporters that internet providers would not block content because it would not make economic sense and consumers would not stand for it.

“They make a lot of money on an open internet,” Powell said, adding it is “much more profitable” than a closed system. “This is not a pledge of good-heartedness, it’s a pledge in the shareholders’ interest.”

A University of Maryland poll released this week found that more than 80 percent of respondents opposed the proposal. The survey of 1,077 registered voters was conducted online by the Program for Public Consultation at the University of Maryland from Dec. 6-8.

Democrats have said the absence of rules would be unacceptable and that they would work to overturn the proposal if it is approved. Advocates of the net neutrality rules also plan a legal challenge.

Pai’s proposal is “like letting the bullies develop their own playground rules,” said Senator Ed Markey, a Massachusetts Democrat.

Many Republicans back Pai’s proposal but want Congress to write net neutrality rules. Senate Majority Leader Mitch McConnell said the FCC would “return the internet to a consumer-driven marketplace free of innovation-stifling regulations.”

A group of nearly 20 state attorneys general asked the FCC to delay the vote until the issue of fake comments is addressed.

(Reporting by David Shepardson; Editing by Chris Sanders and Lisa Shumaker)

U.S. agency prepares to hand over internet oversight to FTC

By David Shepardson

WASHINGTON (Reuters) – The U.S. Federal Communications Commission plans to turn over oversight of internet service providers to another federal agency as it plans to vote on Thursday to revoke the landmark 2015 “net neutrality” rules.

FCC Chairman Ajit Pai last month unveiled plans to repeal the rules that prohibit internet service providers from impeding consumer access to web content. The 2015 rules bar broadband providers from blocking or slowing access to web content.

On Monday, the FCC and Federal Trade Commission said they plan to enter into a Memorandum of Understanding to coordinate efforts under the new rules. The agencies said the proposal will “return jurisdiction to the FTC to police the conduct of ISPs.”

Pai said Monday in a statement the agencies “will work together to take targeted action against bad actors.”

Under Pai’s proposal, the FCC would no longer bar any specific internet provider practice but require companies to disclose if they block, throttle or offer paid prioritization of internet traffic.

FCC Commissioner Mignon Clyburn, a Democrat, said the agreement “is a confusing, lackluster, reactionary afterthought: an attempt to paper over weaknesses in the chairman’s draft proposal repealing the FCC’s 2015 net neutrality rules.”

The FTC will investigate if internet providers fail to make accurate disclosures or if they engage in deceptive or unfair acts or practices. “The FTC is committed to ensuring that Internet service providers live up to the promises they make to consumers,” said Acting FTC Chairman Maureen Ohlhausen.

FCC Commissioner Jessica Rosenworcel, a Democrat, said “FTC enforcement would happen long after the fact — many months, if not years, after consumers and businesses have been harmed.”

Chris Lewis, vice president of advocacy group Public Knowledge, said the FCC is “joining forces with the FTC to say it will only act when a broadband provider is deceiving the public. This gives free reign to broadband providers to block or throttle your broadband service as long as they inform you.”

Democrats and net neutrality advocates plan a series of protests ahead of Thursday’s vote. Pai’s proposal has already won the backing of the three Republicans on the five-member commission. The reversal represents a victory for big internet providers such as AT&T Inc <T.N>, Comcast Corp <CMCSA.O> and Verizon Communications Inc <VZ.N> that opposed the 2015 rules.

Pai’s proposal is opposed by large internet companies including Alphabet Inc <GOOGL.O> and Facebook Inc <FB.O>.

The new rules are expected to take effect in January and draw court challenges.

(Reporting by David ShepardsonEditing by Marguerita Choy)

Over half of public comments to FCC on net neutrality appear fake: study

WASHINGTON (Reuters) – More than half of the 21.7 million public comments submitted to the U.S. Federal Communications Commission about net neutrality this year used temporary or duplicate email addresses and appeared to include false or misleading information, the Pew Research Center said on Wednesday.

FCC Chairman Ajit Pai, a Republican appointed by President Donald Trump, proposed in April to scrap the 2015 landmark net neutrality rules, moving to give broadband service providers sweeping power over what content consumers can access.

Pai has said the action would remove heavy-handed internet regulations. Critics have said it would let internet service providers give preferential treatment to some sites and apps and allow them to favor their own digital content.

From April 27 to Aug. 30 the public was able to submit comments to the FCC on the topic electronically. Of those, 57 percent used either duplicate email addresses or temporary email addresses, while many individual names appeared thousands of times in the submissions, Pew said.

For example, “Pat M” was listed on 5,910 submissions, and the email address john_oliver@yahoo.com was used in 1,002 comments. TV host John Oliver supported keeping net neutrality earlier this on his HBO talk show.

The flood of purportedly fake comments has made it difficult to interpret the public’s true thinking on net neutrality and has even spurred New York State Attorney General Eric Schneiderman to investigate for the last six months who posted the comments to the FCC website.

Pew did not say how many of the comments supported or opposed the FCC’s proposal. With three Republican and two Democratic commissioners, the FCC is all but certain to approve the repeal.

Pew found that only 6 percent of submitted comments were unique while the rest had been submitted multiple times, in some cases, hundreds of thousands of times.

Thousands of identical comments were also submitted in the same second on at least five occasions. On July 19 at precisely 2:57:15 p.m. ET, 475,482 comments were submitted, Pew said, adding that almost all were in favor of net neutrality.

“In fact, the seven most-submitted comments (six of which argued against net neutrality regulations) comprise 38 percent of all the submissions over the four-month comment period,” the study said.

Pew said its analysis of the submissions “present challenges to anyone hoping to understand the attitudes of the concerned public regarding net neutrality.”

The regulatory agency will vote at a Dec. 14 meeting on Pai’s plan to rescind the rules championed by Democratic former President Barack Obama.

The rules bar broadband providers from blocking or slowing down access to content or charging consumers more for certain content, and treated internet service providers like public utilities.

(Reporting by Chris Sanders; Editing by Lisa Shumaker)

China cyber watchdog rejects censorship critics, says internet must be ‘orderly’

BEIJING (Reuters) – China’s top cyber authority on Thursday rejected a recent report ranking it last out of 65 countries for press freedom, saying the internet must be “orderly” and the international community should join it in addressing fake news and other cyber issues.

Ren Xianliang, vice minister of the Cyberspace Administration of China (CAC), said the rapid development of the country’s internet over two decades is proof of its success and that it advocates for the free flow of information.

“We should not just make the internet fully free, it also needs to be orderly… The United States and Europe also need to deal with these fake news and rumors” Ren told journalists without elaborating.

China enforces strict internet censorship rules, which have hardened this year with new restrictions on media outlets and surveillance measures for social media sites.

On Tuesday, U.S. NGO Freedom House released an annual report ranking China last in terms of internet freedom for the third year in a row, criticizing censorship activity targeting ethnic minorities, media and regular citizens.

The report also said the manipulation of social media had undermined elections in 18 countries over the past year.

This year China brought in new rules banning virtual private networks (VPNs) and other methods used to circumvent the country’s Great Firewall, which blocks foreign social media and news sites in the country.

The Cyberspace Administration also introduced laws making members of messaging app groups legally liable for content deemed offensive to socialist values.

It comes as China prepares to host the World Internet Conference, the country’s top public cyber policy forum, next month, where members of international governments and the UN will join local officials for a series of discussions on cyber governance.

Several foreign tech firms will also attend the event, including representatives from Facebook Inc, which is blocked behind the Great Firewall but used regularly abroad by Chinese state media outlets.

Ren on Thursday said China welcomed foreign firms to work in the country, on the condition that they abide by local rules and regulations.

(Reporting by Cate Cadell; Editing by Hugh Lawson)

Senate panel advances crackdown on online sex trafficking

By Dustin Volz

WASHINGTON (Reuters) – A U.S. Senate committee on Wednesday advanced legislation to make it easier to penalize operators of websites that facilitate online sex trafficking, the most concrete action from Congress this year to tighten regulation of internet companies.

The approval came after major U.S. internet firms dropped their opposition to the measure, which amends a decades-old law that is considered a bedrock legal shield for the companies.

In a unanimous voice vote, the Senate Commerce Committee passed a measure that gives states and sex-trafficking victims a means to sue social media networks, advertisers and others that fail to keep exploitative material off their platforms.

The bill rewrites Section 230 of the Communications Decency Act, which generally protects companies from liability for the activities of their users. The changes, which have bipartisan support, will still need to pass the full Senate and the U.S. House of Representatives and be signed by President Donald Trump to become law.

“This is a momentous day in our fight to hold online sex traffickers accountable and help give trafficking survivors the justice they deserve,” Republican Senator Rob Portman, who co-authored the bill, known as the Stop Enabling Sex Traffickers Act, said in a statement.

After decades of little oversight from Washington, the internet industry is facing increased scrutiny from lawmakers in both parties over concerns about their size and how their platforms were used by Russia during the 2016 election.

More than 40 senators have co-sponsored the bill, and Trump’s daughter, Ivanka Trump, has endorsed it.

“Great to see the public & private sector come together in support of this bipartisan legislation to stop sex trafficking online,” she tweeted on Wednesday.

Internet firms had long objected to proposals in Congress to rewrite Section 230, arguing the measure had allowed innovation in Silicon Valley to thrive.

But the Internet Association, a major industry group whose members include Facebook <FB.O>, Amazon <AMZN.O> and Alphabet’s Google <GOOGL.O>, announced support for the Senate bill last week after a series of changes.

Those edits clarified that criminal charges are based on violations of federal human trafficking law and that a standard for liability requires a website to “knowingly” assist in facilitating trafficking.

Some opposition remains. In a letter on Tuesday, a dozen civil liberties organizations, including the Center for Democracy & Technology and Electronic Frontier Foundation, said the bill would threaten free speech online and unevenly harm smaller companies with fewer resources to police their platforms.

(Reporting by Dustin Volz; Editing by Colleen Jenkins)

Researchers uncover flaw that makes Wi-Fi vulnerable to hacks

A magnifying glass is held in front of a computer screen in this picture illustration taken in Berlin May 21, 2013

(Reuters) – Belgian researchers have discovered a flaw in a widely used system for securing Wi-Fi communications that could allow hackers to read information that was previously understood to be encrypted, or infect websites with malware, they said on Monday.

Researchers Mathy Vanhoef and Frank Piessens of Belgian university KU Leuven disclosed the bug in the WPA2 protocol, which secures modern Wi-Fi systems used by vendors for wireless communications between mobile phones, laptops and other connected devices with Internet-connected routers or hot spots.

“If your device supports Wi-Fi, it is most likely affected,” they said on a website, www.krackattacks.com, that they set up to provide technical information about the flaw and methods for attacking vulnerable devices.

It was not immediately clear how difficult it would be for hackers to exploit the bug, or if the vulnerability has previously been used to launch any attacks.

The Wi-Fi Alliance, an industry group that represents hundreds of Wi-Fi technology companies, said the issue “could be resolved through a straightforward software update.”

The group said in a statement it had advised members to quickly release patches and recommended that consumers quickly install those security updates.

(Reporting by Jim Finkle in Toronto; editing by Susan Thomas)

Russia tells Facebook to localize user data or be blocked

MOSCOW (Reuters) – Russia will block access to Facebook next year unless the social network complies with a law that requires websites which store the personal data of Russian citizens to do so on Russian servers, Russian news agencies reported on Tuesday.

The threat was made by Russia’s communications watchdog Roskomnadzor, agencies said, the organization which blocked access to LinkedIn’s website last November in order to comply with a court ruling that found the social networking firm guilty of violating the same data storage law.

That case set a precedent for the way foreign Internet firms operate in Russia and other companies are now under pressure from the regulator to comply with the law, which was approved by President Vladimir Putin in 2014 and entered into force in September 2015.

“Everyone needs to abide by the law,” the Interfax news agency cited Roskomnadzor head Alexander Zharov as telling reporters on Tuesday. “In 2018, everything will be as it should be for sure,” he said, referring to Facebook.

“In any case, we will either get the law implemented or the company will cease to work on the territory of the Russian Federation as unfortunately happened to LinkedIn. There can’t be any exceptions here.”

Twitter Inc had already notified Roskomnadzor that it would aim to localize the personal data of its users by the middle of 2018, Zharov said.

“We understand clearly that Facebook has a significant number of users on the territory of the Russian Federation,” Zharov was cited as saying. “On the other hand, we understand that this is not a unique service, and that there are other social media.”

Asked to comment on the regulator’s demands for Facebook to localize the data of its Russian users, Kremlin spokesman Dmitry Peskov said the U.S. firm had to comply with the law like everyone else.

(Reporting by Dmitry Solovyov; Editing by Andrew Osborn)

China holds drill to shut down ‘harmful’ websites

Computer code is seen on a screen above a Chinese flag in this July 12, 2017 illustration photo. REUTERS/Thomas White/Illustration

By Sijia Jiang

HONG KONG (Reuters) – China held a drill on Thursday with internet service providers to practice taking down websites deemed harmful, as the country’s censors tighten control ahead of a sensitive five-yearly political reshuffle set to take place later this year.

Internet data centers (IDC) and cloud companies – which host website servers – were ordered to participate in a three-hour drill to hone their “emergency response” skills, according to at least four participants that included the operator of Microsoft’s cloud service in China.

China’s Ministry of Public Security called for the drill “in order to step up online security for the 19th Party Congress and tackle the problem of smaller websites illegally disseminating harmful information”, according to a document circulating online attributed to a cyber police unit in Guangzhou.

An officer who answered the phone in the Guangzhou public security bureau confirmed the drill but declined to elaborate.

President Xi Jinping has overseen a tightening of China’s cyberspace controls, including tough new data surveillance and censorship rules. This push is now ramping up ahead of an expected consolidation of power at the Communist Party Congress this autumn.

The drill asked internet data centers to practice shutting down target web pages speedily and report relevant details to the police, including the affected websites’ contact details, IP address and server location.

China’s cyberspace administration declined to comment, saying it was not the correct department to address the question to. China’s Ministry of Public Security did not respond to a faxed request for comment.

Several service providers, including 21Vianet Group and VeryCloud, issued notices to users, warning of possible temporary service disruptions on Thursday afternoon as a result of the drill, which were confirmed to Reuters by their customer service representatives.

Nasdaq-listed 21 Vianet Group is China’s largest carrier-neutral internet data center services provider according to its website, and counts many Western multinationals including Microsoft, IBM, Cisco and HP among its clients. It runs Microsoft’s Azure-based services in China.

21 Vianet Group did not immediately respond to an emailed request for comment.

China has been tightening its grip on the internet, including a recent drive to crack down on the usage of VPNs to bypass internet censorship, enlisting the help of state-owned telecommunication service providers to upgrade the so-called Great Firewall.

Apple last week removed VPN apps from its app store, while Amazon’s China partner warned users not to use VPNs.

(Reporting by Sijia Jiang; Additional reporting by Susan Gao and Jasper Ng in HONG KONG and Ben Blanchard in Beijing; Editing by Mark Potter)

U.S. senators to introduce bill to secure ‘internet of things’

A man takes part in a hacking contest during the Def Con hacker convention in Las Vegas, Nevada, U.S. on July 29, 2017. REUTERS/Steve Marcus

By Dustin Volz

SAN FRANCISCO (Reuters) – A bipartisan group of U.S. senators on Tuesday plans to introduce legislation seeking to address vulnerabilities in computing devices embedded in everyday objects – known in the tech industry as the “internet of things” – which experts have long warned poses a threat to global cyber security.

The new bill would require vendors that provide internet-connected equipment to the U.S. government to ensure their products are patchable and conform to industry security standards. It would also prohibit vendors from supplying devices that have unchangeable passwords or possess known security vulnerabilities.

Republicans Cory Gardner and Steve Daines and Democrats Mark Warner and Ron Wyden are sponsoring the legislation, which was drafted with input from technology experts at the Atlantic Council and Harvard University. A Senate aide who helped write the bill said that companion legislation in the House was expected soon.

“We’re trying to take the lightest touch possible,” Warner told Reuters in an interview. He added that the legislation was intended to remedy an “obvious market failure” that has left device manufacturers with little incentive to build with security in mind.

The legislation would allow federal agencies to ask the U.S. Office of Management and Budget for permission to buy some non-compliant devices if other controls, such as network segmentation, are in place.

It would also expand legal protections for cyber researchers working in “good faith” to hack equipment to find vulnerabilities so manufacturers can patch previously unknown flaws.

Security researchers have long said that the ballooning array of online devices including cars, household appliances, speakers and medical equipment are not adequately protected from hackers who might attempt to steal personal information or launch sophisticated cyber attacks.

Between 20 billion and 30 billion devices are expected to be connected to the internet by 2020, researchers estimate, with a large percentage of them insecure.

Though security for the internet of things has been a known problem for years, some manufacturers say they are not well equipped to produce cyber secure devices.

Hundreds of thousands of insecure webcams, digital records and other everyday devices were hijacked last October to support a major attack on internet infrastructure that temporarily knocked some web services offline, including Twitter, PayPal and Spotify.

The new legislation includes “reasonable security recommendations” that would be important to improve protection of federal government networks, said Ray O’Farrell, chief technology officer at cloud computing firm VMware.

(Reporting by Dustin Volz; Editing by Bill Rigby)

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