Federal Trade Commission

FTC tells ISPs to disclose exactly what information they collect on users and what it’s for

Posted by | broadband providers, Federal Trade Commission, FTC, Government, isps, Mobile, Policy, privacy | No Comments

The Federal Trade Commission, in what could be considered a prelude to new regulatory action, has issued an order to several major internet service providers requiring them to share every detail of their data collection practices. The information could expose patterns of abuse or otherwise troubling data use against which the FTC — or states — may want to take action.

The letters requesting info (detailed below) went to Comcast, Google, T-Mobile and both the fixed and wireless sub-companies of Verizon and AT&T. These “represent a range of large and small ISPs, as well as fixed and mobile Internet providers,” an FTC spokesperson said. I’m not sure which is meant to be the small one, but welcome any information the agency can extract from any of them.

Since the Federal Communications Commission abdicated its role in enforcing consumer privacy at these ISPs when it and Congress allowed the Broadband Privacy Rule to be overturned, others have taken up the torch, notably California and even individual cities like Seattle. But for enterprises spanning the nation, national-level oversight is preferable to a patchwork approach, and so it may be that the FTC is preparing to take a stronger stance.

To be clear, the FTC already has consumer protection rules in place and could already go after an internet provider if it were found to be abusing the privacy of its users — you know, selling their location to anyone who asks or the like. (Still no action there, by the way.)

But the evolving media and telecom landscape, in which we see enormous companies devouring one another to best provide as many complementary services as possible, requires constant reevaluation. As the agency writes in a press release:

The FTC is initiating this study to better understand Internet service providers’ privacy practices in light of the evolution of telecommunications companies into vertically integrated platforms that also provide advertising-supported content.

Although the FTC is always extremely careful with its words, this statement gives a good idea of what they’re concerned about. If Verizon (our parent company’s parent company) wants to offer not just the connection you get on your phone, but the media you request, the ads you are served and the tracking you never heard of, it needs to show that these businesses are not somehow shirking rules behind the scenes.

For instance, if Verizon Wireless says it doesn’t collect or share information about what sites you visit, but the mysterious VZ Snooping Co (fictitious, I should add) scoops all that up and then sells it for peanuts to its sister company, that could amount to a deceptive practice. Of course it’s rarely that simple (though don’t rule it out), but the only way to be sure is to comprehensively question everyone involved and carefully compare the answers with real-world practices.

How else would we catch shady zero-rating practices, zombie cookies, backdoor deals or lip service to existing privacy laws? It takes a lot of poring over data and complaints by the detail-oriented folks at these regulatory bodies to find things out.

To that end, the letters to ISPs ask for a whole boatload of information on companies’ data practices. Here’s a summary:

  • Categories of personal information collected about consumers or devices, including purposes, methods and sources of collection
  • how the data has been or is being used
  • third parties that provide or are provided this data and what limitations are imposed thereupon
  • how such data is combined with other types of information and how long it is retained
  • internal policies and practices limiting access to this information by employees or service providers
  • any privacy assessments done to evaluate associated risks and policies
  • how data is aggregated, anonymized or deidentified (and how those terms are defined)
  • how aggregated data is used, shared, etc.
  • “any data maps, inventories, or other charts, schematics, or graphic depictions” of information collection and storage
  • total number of consumers who have “visited or otherwise viewed or interacted with” the privacy policy
  • whether consumers are given any choice in collection and retention of data, and what the default choices are
  • total number and percentage of users that have exercised such a choice, and what choices they made
  • whether consumers are incentivized to (or threatened into) opt into data collection and how those programs work
  • any process for allowing consumers to “access, correct, or delete” their personal information
  • data deletion and retention policies for such information

Substantial, right?

Needless to say, some of this information may not be particularly flattering to ISPs. If only 1 percent of consumers have ever chosen to share their information, for instance, that reflects badly on sharing it by default. And if data capable of being combined across categories or services to de-anonymize it, even potentially, that’s another major concern.

The FTC representative declined to comment on whether there would be any collaboration with the FCC on this endeavor, whether it was preliminary to any other action and whether it can or will independently verify the information provided by the ISPs contacted. That’s an important point, considering how poorly these same companies represented their coverage data to the FCC for its yearly broadband deployment report. A reality check would be welcome.

You can read the rest of the letter here (PDF).

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Apple is selling the iPhone 7 and iPhone 8 in Germany again

Posted by | antitrust, Apple, apple inc, China, Europe, Federal Trade Commission, Germany, Intel, iPhone, lawsuit, licensing, Mobile, mobile phones, patent litigation, patents, Qorvo, Qualcomm, smartphone, standards-essential patents | No Comments

Two older iPhone models are back on sale in Apple stores in Germany — but only with Qualcomm chips inside.

The iPhone maker was forced to pull the iPhone 7 and iPhone 8 models from shelves in its online shop and physical stores in the country last month, after chipmaker Qualcomm posted security bonds to enforce a December court injunction it secured via patent litigation.

Apple told Reuters it had “no choice” but to stop using some Intel chips for handsets to be sold in Germany. “Qualcomm is attempting to use injunctions against our products to try to get Apple to succumb to their extortionist demands,” it said in a statement provided to the news agency.

Apple and Qualcomm have been embroiled in an increasingly bitter global legal battle around patents and licensing terms for several years.

The litigation follows Cupertino’s move away from using only Qualcomm’s chips in iPhones after, in 2016, Apple began sourcing modem chips from rival Intel — dropping Qualcomm chips entirely for last year’s iPhone models. Though still using some Qualcomm chips for older iPhone models, as it will now for iPhone 7 and iPhone 8 units headed to Germany.

For these handsets Apple is swapping out Intel modems that contain chips from Qorvo which are subject to the local patent litigation injunction. (The litigation relates to a patented smartphone power management technology.) 

Hence Apple’s Germany webstore is once again listing the two older iPhone models for sale…

Newer iPhones containing Intel chips remain on sale in Germany because they do not containing the same components subject to the patent injunction.

“Intel’s modem products are not involved in this lawsuit and are not subject to this or any other injunction,” Intel’s general counsel, Steven Rodgers, said in a statement to Reuters.

While Apple’s decision to restock its shelves with Qualcomm-only iPhone 7s and 8s represents a momentary victory for Qualcomm, a separate German court tossed another of its patent suits against Apple last month — dismissing it as groundless. (Qualcomm said it would appeal.)

The chipmaker has also been pursing patent litigation against Apple in China, and in December Apple appealed a preliminary injunction banning the import and sales of old iPhone models in the country.

At the same time, Qualcomm and Apple are both waiting the result of an antitrust trial brought against Qualcomm’s licensing terms in the U.S.

Two years ago the FTC filed charges against Qualcomm, accusing the chipmaker of operating a monopoly and forcing exclusivity from Apple while charging “excessive” licensing fees for standards-essential patents.

The case was heard last month and is pending a verdict or settlement.

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German court tosses Qualcomm’s latest iPhone patent suit

Posted by | apple inc, China, Europe, Federal Trade Commission, Germany, Intel, iPhone, lawsuit, Mobile, patent, Qualcomm, smartphones | No Comments

Qualcomm has had a patent lawsuit against Apple dismissed by a court in Mannheim, Germany, as groundless (via Reuters).

The chipmaker had argued Intel -powered iPhones infringed a transistor switch patent it holds. But in an initial verbal decision the court disagreed. Qualcomm has said it will appeal.

In a statement, Don Rosenberg, Qualcomm’s executive VP and general counsel, said: “Apple has a history of infringing our patents. Only last month the Munich Regional Court affirmed the value of another of Qualcomm’s cutting-edge patents against Apple’s infringement and ordered a ban on the import and sale of impacted iPhones in Germany. That decision followed a Court-ordered ban on patent-infringing iPhones in China as well as recognition by an ITC judge that Apple is infringing Qualcomm’s IP. The Mannheim court interpreted one aspect of our patent very narrowly, saying that because a voltage inside a part of an iPhone wasn’t constant the patent wasn’t infringed.  We strongly disagree and will appeal.”

We’ve reached out to Apple for comment. Update: The company told us: “We are happy with the decision and thank the court for their time and diligence.  We regret Qualcomm’s use of the court to divert attention from their illegal behavior that is the subject of multiple lawsuits and proceedings around the world.”

The pair have been embroiled in an increasingly bitter and global legal battle in recent years, as Apple has shifted away from using Qualcomm chips in its devices.

Two years ago the FTC also filed charges against the chipmaker accusing it of anticompetitive tactics in an attempt to maintain a monopoly (Apple is officially cited in the complaint). That trial began early this month.

Cupertino has also filed a billion-dollar royalty lawsuit accusing Qualcomm of charging for patents “they have nothing to do with”.

While the latest court decision in Mannheim has gone in Apple’s favor, a separate ruling in Germany late last year went Qualcomm’s way. And earlier this month Apple was forced to withdraw the iPhone 7 and 8 from its retail stores in Germany, after Qualcomm posted €1.34BN in security bonds to enforce the December court decision — which related to a power management patent.

Although the affected iPhone models remain on sale in Germany via resellers. Apple is also appealing.

Qualcomm also recently secured a preliminary injunction banning the import and sales of some older iPhone models in China. Again, Apple is appealing.

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