Tag Archives: technology

Cable TV companies are readying a court challenge if the Federal Communications Commission approves new set-top box regulations that would let companies like Apple ( AAPL ), Alphabet ( GOOGL ), Amazon.com ( AMZN ) and others sell devices that provide access to cable programming. The National Cable & Telecommunications Association has hired Theodore Olson, an attorney at the noted law firm Gibson, Dunn & Crutcher, to battle the FCC’s set-top box proposal. Olson, a former solicitor general, represented George W. Bush in the contested 2000 election vs. Al Gore that ultimately was decided by the U.S. Supreme Court. Apple also recently hired Olson and Gibson, Dunn & Crutcher in its battle vs. the Federal Bureau of Investigation involving a court order to unlock an iPhone used by an assailant in the San Bernardino terror attack. President Obama last week stated his support for opening up the set-top box market for more competition. The proposal would require pay-TV and technology companies to jointly develop new standards for devices providing access to cable TV networks. The cable TV industry pays programmers billions of dollars for content rights, and it’s unclear how that business model would be impacted. Comcast ( CMCSA ) and phone company AT&T ( T ), also a pay-TV provider, have criticized the set-top box initiative. The FCC, with three Democratic members and two Republicans, is expected to vote on the plan after a public comment period closes. FCC Chairman Tom Wheeler says the plan will make it easier for consumers to switch from pay-TV companies’ set-top boxes leased monthly to new devices sold on a retail basis by consumer electronics or Internet companies. Gibson, Dunn ‘Most Certainly Preparing For Litigation’ “We are most certainly preparing for litigation in the event the FCC moves forward with its invasive and illegal plan to restructure the video programming market,” said a spokesperson for Gibson, Dunn & Crutcher. Brian Dietz, a NCTA spokesman said, “We are exploring all options.” The NCTA previously hired Gibson, Dunn & Crutcher to challenge the FCC’s Title II-based net neutrality rules that were enforced in mid-2015. The U.S. Court of Appeals for the District of Columbia Circuit is expected to rule soon on the net neutrality case. Pay-TV companies may have an uphill legal battle vs. the FCC’s set-top box rules, says Paul Gallant, an analyst at Guggenheim Partners. “Cable/telcos will almost certainly challenge any FCC final new set-top rules in court,” Gallant said in a February research report. “They will likely argue, among other things, that the FCC lacks authority to give app makers access to programming/guide information. “It’s far too early to predict the court outcome, but it’s important to note that the FCC is operating under a clear congressional mandate to make the set-top business competitive. That doesn’t necessarily mean the FCC will prevail, but the agency probably will feel good about its chances with that statutory starting point.” Under the proposed new set-top rules, the FCC says that only pay-TV subscribers will gain access to programming, and that copyright protections will be preserved. Google, critics say, aims to swap its own advertising for the local ads sold by cable TV companies.