Economic analysis shows that the benefits of online information collection, such as ad-supported applications and content, greatly outweigh any costs or risks, state Paul Rubin and Michael Hammock in “Applications Want to be Free: Privacy Against Information,” released today by the Technology Policy Institute. Current arguments for increased privacy regulation are not based on economic theory or evidence and instead rely on anecdotes or a perceived inherent “right” to privacy online. As a result, policymakers should be leery of making radical changes to the current privacy regime without carefully considering the economic consequences.
Press Releases
Event Video: Online Privacy after the DOC and FTC Reports
Online video is now available on the C-SPAN website of last Friday’s event “Online Privacy after the DOC and FTC Reports,” hosted by the Technology Policy Institute. The event featured opening remarks by Congressman Cliff Stearns, Chairman of the Oversight and Investigations Subcommittee of the House Energy and Commerce Committee. In his remarks, Stearns outlined the goals and key provisions of the draft privacy legislation he is planning to introduce soon.
Hon. Cliff Stearns to Give Remarks at TPI Online Privacy Event
Congressman Cliff Stearns will offer remarks at this Friday’s event “Online Privacy after the DOC and FTC Reports,” hosted by the Technology Policy Institute. Rep. Stearns, Chairman of the Oversight and Investigations Subcommittee of the House Energy and Commerce Committee, is expected to soon introduce privacy legislation, building upon a previous draft developed in the last Congress.
Event – Online Privacy after the DOC and FTC Reports
The long-awaited Federal Trade Commission and Department of Commerce reports outlined recommendations for online privacy policy ranging from strengthening multi-stakeholder models to a “Do Not Track” mechanism for internet browsers. Congress is now poised to add its voice to the debate, with legislation already introduced and more to come. With the proposals representing a wide swath of options, how can policymakers choose the best course of action? How will each proposal affect online businesses and consumers? Alternately, is a federal privacy policy needed or advisable? Panelists at the March 4th event, “Online Privacy after the DOC and FTC Reports” will discuss the findings of the recent DOC and FTC reports and will give their suggestions on how policymakers in both the agencies and Congress can move forward on online privacy issues.
Over Half of USF High-Cost Fund used for “General Expenses”
Over half of subsidies, or $.59 of every dollar, paid through the High-Cost Universal Service Fund go to general expenses of firms, not to directly providing support to high-cost lines, finds Scott Wallsten in “The Universal Service Fund: What Do High-Cost Subsides Subsidize?,” released today by the Technology Policy Institute. This research underscores the inefficiency in the current universal service subsidies program and, in particular, the high-cost fund. Policymakers should use the push to include broadband as part of USF to implement radical reforms.
Cost-Benefit Analysis of FTC Privacy Proposal Needed
The Federal Trade Commission should rigorously analyze the costs and benefits of its proposed privacy recommendations, including the “Do Not Track” mechanism, before moving forward with any policy proposals, states Thomas Lenard in comments submitted in response to the Commission’s Staff Report on privacy. Without such an analysis, the Commission cannot accurately predict if its recommendations will improve or reduce consumer welfare.
Cloud Computing Impacts Network Architecture, Policy Issues
The rising popularity of cloud computing will require changes to the underlying network architecture, raising questions about the impact of regulations on the fledgling industry, explains Christopher Yoo in, “Cloud Computing: Architectural and Policy Implications,” released today by the Technology Policy Institute. The paper is a revised version of a paper presented at the recent TPI conference, “Antitrust and the Dynamics of Competition in High-Tech Industries.”
Cost-Benefit Analysis Needed for Commerce Department Privacy Framework
The U.S. Department of Commerce should rigorously analyze the costs and benefits of its proposed privacy framework and alternative policy proposals before moving forward with any recommendations, states Thomas Lenard in comments submitted today in response to the agency’s Green Paper on online privacy. Without such an analysis, the agency cannot accurately predict if its proposal will improve or reduce consumer welfare.
Antitrust Case Against Intel Does Not Show Harm to Consumers
Evaluation of the competitive effects of Intel’s loyalty discounts, which garnered scrutiny from antitrust authorities, does not support claims that the company’s actions have harmed consumers. Analysis of market share, prices, and relevant financial markets fail to show higher prices or abnormal financial returns, concludes Joshua Wright in, “Does Antitrust Enforcement in High Tech Markets Benefit Consumers? Stock Price Evidence from FTC v. Intel,” released today by the Technology Policy Institute. The paper is a revised version of a paper presented at the recent TPI conference, “Antitrust and the Dynamics of Competition in High-Tech Industries.”