The Importance of Regulation: A Tale of Location Data and Big Tech Companies

I have to say, every time I hear people say that Lena Khan and the FTC and the FCC are ineffective, can't get anything done, I fight back because I say we need these guys. This is what this is all about, the last defense against technology that wants to shape-shift. Take, for example, Shij Cox's article in Motherboard five years ago. I gave a bounty hunter $300, and he located our phone. T-Mobile Sprint, those mobile carriers were selling access to their customers' location data, and that data was ending up in the hands of bounty hunters and others not authorized to possess it.

It was a complete coincidence that this issue wasn't addressed sooner, but unfortunately, the Senate has been deadlocked for years, preventing us from approving the necessary reforms. It's true that President Biden's pick for the FCC was delayed, leaving the agency deadlocked 2-2, unable to do anything about it until recently. But not so long ago, when a fifth commissioner was confirmed, Democrats had a 3-2 margin, and Jessica Rosenwarell, the chairman of the FCC, finally got this fine through.

The US mobile carriers have combined nearly $200 million for sharing customers' location data without their consent. The FCC says it found that carriers sold access to its customers' location information to aggregators who then resold access to third-party location-based service providers. Now, the trick the agency says they used is that they offloaded their responsibility to get consent to the downstream participants and said, "Okay, we're going to give you this data, but you got to ask before you use it." Of course, they didn't do that, even after being made aware of the issue.

The FCC's fine on T-Mobile, Sprint (which has since merged with T-Mobile), AT&T, Verizon, and other carriers is a fraction of what these companies make. T-Mobile's market cap is $193 billion, making nearly $880 billion in revenue last year. AT&T is much the same, with a market cap of $120 billion and $121 billion in revenue last year. And yet, they're still complaining about this fine as if it's some affront to the sanctity of their businesses.

The fines proposed by the FCC are lower than what these companies make in a day. $80 million for T-Mobile, $12 million for Sprint (which has since merged with T-Mobile), $57 million for AT&T, and $47 million for Verizon. It's worth noting that the fines were lower than what these companies make in a day.

The FCC spokesperson said that the agency's action "lacks both legal and factual merit." They argue that it unfairly holds them responsible for another company's violation of contractual requirements to obtain consent. The FCC encourages life-saving location services like emergency medical alerts and roadside assistance, but they say it's not their problem when one bad actor gains unauthorized access to information relating to very small numbers of customers.

It's an old program, Verizon shut down more than half a decade ago. But the fines proposed by the FCC are still lower than what these companies make in a day. I think it's notable to note that the fines that these companies are complaining about are a fraction of a fraction of what they make. I mean, T-Mobile makes nearly $880 billion in revenue last year, and AT&T is much the same with a market cap of $120 billion.

In conclusion, the importance of regulation cannot be overstated. Without it, big tech companies like T-Mobile, Sprint (which has since merged with T-Mobile), AT&T, Verizon, and others can continue to exploit customers' location data without their consent. The FCC's fine may seem small compared to what these companies make in a day, but it's a step in the right direction towards holding them accountable for their actions.

"WEBVTTKind: captionsLanguage: enthis is Twi you know every time I hear people say oh Lena Khan and the FTC and the FCC they're ineffective they can't get anything done Jessica Rosen warell can't get anything every time I fight back because I say we need these guys this is what this is the last defense against technology that is wants to in shifyj Cox in 2019 you may remember his article in motherboard I gave a bounty hunter $300 then he located our phone T-Mobile Sprint and AT&T are selling access to their customers location data and that data is ending up in the hands of bounty hunters and others not authorized to possess it this was five years ago now unfortunately I'm sure it's a complete coincidence the Senate has been so deadlocked that were not able to approve it was gii s right the uh President Biden's pick for the FCC so the FCC was deadlocked two to2 they couldn't do anything about it until finally the deadlock was broken not so long ago when a fifth commissioner was confirmed Democrats had a 3-2 margin Jessica Rosen warell the chairman of the FCC finally got this fine through the FCC IS F it just makes me it just warms the cockles of my heart the US Mobile carriers have combined nearly $200 million for sharing customers location data without their consent the FCC says it found carriers sold access to its customers location information to aggregators who then resold access to such information to third-party location-based service providers now the trick the agency says they used is they offloaded their responsibility to get consent to the downstream participants they said okay we're going to give you this data but you got to ask before you use it of course they didn't um and even after being made aware of the issue uh the FCC says carriers still didn't limit access to the information T-Mobile $80 million Sprints which has since mer with t merged with T-Mobile $12 million AT&T $57 million Verizon $47 million um these are lower than the initial fines proposed AT&T spokesperson says the fcc's action quote lacks both legal and factual Merit it unfairly holds us responsible for another company's violation of our contractual comp comp contractual requirements to obtain consent ignores the immediate steps we took to address that company's failures and perversely punishes us for supporting life-saving location services like emergency medical alerts and roadside assistance that the FCC itself previously encouraged we expect to appeal the order after conducting a legal review so they're basically saying your honor we just shared it with life-saving location services like emergency medical alerts and roadside assistance we told them you can't use this you can't sell it on unless you get customers consent it's not our problem for Verizon said one bad actor gain unauthorized access to information relating to very small number of customers it's an old program Verizon shut down more than half a decade ago so this is from the I do think it's notable to note that the the fines that these companies are complaining about are a fraction of a fraction of what they make I mean T-Mobile's market cap is 193 billion it made nearly $880 billion in Revenue last year AT&T is much of the same like $120 million 120 billion in Revenue last year and $121 billion market cap it and yet they are still complaining as if this will is some affront to the sanctity of their businesses hey it's Leo leaport I hope you enjoyed this little snippet from our show this week in Google for the full show you can either go to our website twit.tv twig or find twig and your favorite podcast client and of course there's links right below somewhere down there for more informationthis is Twi you know every time I hear people say oh Lena Khan and the FTC and the FCC they're ineffective they can't get anything done Jessica Rosen warell can't get anything every time I fight back because I say we need these guys this is what this is the last defense against technology that is wants to in shifyj Cox in 2019 you may remember his article in motherboard I gave a bounty hunter $300 then he located our phone T-Mobile Sprint and AT&T are selling access to their customers location data and that data is ending up in the hands of bounty hunters and others not authorized to possess it this was five years ago now unfortunately I'm sure it's a complete coincidence the Senate has been so deadlocked that were not able to approve it was gii s right the uh President Biden's pick for the FCC so the FCC was deadlocked two to2 they couldn't do anything about it until finally the deadlock was broken not so long ago when a fifth commissioner was confirmed Democrats had a 3-2 margin Jessica Rosen warell the chairman of the FCC finally got this fine through the FCC IS F it just makes me it just warms the cockles of my heart the US Mobile carriers have combined nearly $200 million for sharing customers location data without their consent the FCC says it found carriers sold access to its customers location information to aggregators who then resold access to such information to third-party location-based service providers now the trick the agency says they used is they offloaded their responsibility to get consent to the downstream participants they said okay we're going to give you this data but you got to ask before you use it of course they didn't um and even after being made aware of the issue uh the FCC says carriers still didn't limit access to the information T-Mobile $80 million Sprints which has since mer with t merged with T-Mobile $12 million AT&T $57 million Verizon $47 million um these are lower than the initial fines proposed AT&T spokesperson says the fcc's action quote lacks both legal and factual Merit it unfairly holds us responsible for another company's violation of our contractual comp comp contractual requirements to obtain consent ignores the immediate steps we took to address that company's failures and perversely punishes us for supporting life-saving location services like emergency medical alerts and roadside assistance that the FCC itself previously encouraged we expect to appeal the order after conducting a legal review so they're basically saying your honor we just shared it with life-saving location services like emergency medical alerts and roadside assistance we told them you can't use this you can't sell it on unless you get customers consent it's not our problem for Verizon said one bad actor gain unauthorized access to information relating to very small number of customers it's an old program Verizon shut down more than half a decade ago so this is from the I do think it's notable to note that the the fines that these companies are complaining about are a fraction of a fraction of what they make I mean T-Mobile's market cap is 193 billion it made nearly $880 billion in Revenue last year AT&T is much of the same like $120 million 120 billion in Revenue last year and $121 billion market cap it and yet they are still complaining as if this will is some affront to the sanctity of their businesses hey it's Leo leaport I hope you enjoyed this little snippet from our show this week in Google for the full show you can either go to our website twit.tv twig or find twig and your favorite podcast client and of course there's links right below somewhere down there for more information\n"