Lulu’s Law

— 847 — Federal Communications Commission The FCC has facilitated the transition from 3G to 4G and now 5G offerings in two ways. First, it has freed spectrum—the airwaves needed to deliver wireless ser- vices. Second, it has preempted state and local siting and permitting laws that could otherwise slow down the buildout of next-generation infrastructure. One of the FCC’s great success stories from 2017 to 2020 was securing U.S. leadership in 5G. The FCC also administers an approximately roughly $9 billion-a-year program called the Universal Service Fund (USF), which has been funded by a line-item charge that traditional telephone companies add to consumers’ monthly bills. Expenditures from this fund subsidize rural broadband networks and low-income programs as well as connections for schools, libraries, and rural health care facil- ities. Through various COVID-era laws, Congress has also provided the FCC with a one-time $24 billion appropriation for various low-income initiatives. POLICY PRIORITIES The FCC needs to change course and bring new urgency to achieving four main goals: l Reining in Big Tech, l Promoting national security, l Unleashing economic prosperity, and l Ensuring FCC accountability and good governance.15 Reining in Big Tech. The FCC has an important role to play in addressing the threats to individual liberty posed by corporations that are abusing dominant positions in the market. Nowhere is that clearer than when it comes to Big Tech and its attempts to drive diverse political viewpoints from the digital town square. Today, a handful of corporations can shape everything from the information we consume to the places we shop. These corporate behemoths are not merely exercising market power; they are abusing dominant positions. They are not simply prevailing in the free market; they are taking advantage of a landscape that has been skewed—in many cases by the government—to favor their business models over those of their competitors. It is hard to imagine another industry in which a greater gap exists between power and accountability. That is why a new Adminis- tration should support FCC action on several fronts. Specifically, the FFC should: l Eliminate immunities that courts added to Section 230. The FCC should issue an order that interprets Section 230 in a way that eliminates the expansive, non-textual immunities that courts have read into the statute. — 848 — Mandate for Leadership: The Conservative Promise As one of the FCC’s previous General Counsels noted, the FCC has authority to take this action because Section 230 is codified in the Communications Act.16 The FCC’s Section 230 reforms should track the positions outlined in a July 2020 Petition for Rulemaking filed at the FCC near the end of the Trump Administration.17 Any new presidential Administration should consider filing a similar or new petition. As Justice Clarence Thomas has made clear, courts have construed Section 230 broadly to confer on some of the world’s largest companies a sweeping immunity that is found nowhere in the text of the statute.18 They have done so in a way that nullifies the limits Congress placed on the types of actions that Internet companies can take while continuing to benefit from Section 230. One way to start correcting this error is for the FCC to remind courts how the various portions of Section 230 operate. At the outset, the FCC can clarify that Section 230(c)(1) does not apply broadly to every decision that a platform makes. Rather, its protections apply only when a platform does not remove information provided by someone else. In contrast, the FCC should clarify that the more limited Section 230(c)(2) protections apply to any covered platform’s decision to restrict access to material provided by someone else. Combined, these actions will appropriately limit the number of cases in which a platform can censor with the benefit of Section 230’s protections. Such clarifications might also include drawing out the traditional legal distinction between distributor and publisher liability; Section 230 did not do away with the former, nor does it collapse into the latter. l Impose transparency rules on Big Tech. Today, Big Tech offers a black box. After Google manipulates search results, a small business can see its web traffic drop precipitously overnight for no apparent reason, potentially flipping its outlook from black to red. On Facebook, social media posts are left up or taken down, accounts suspended or permanently banned, without any apparent consistency. Out of the blue, YouTube can demonetize individuals who have risked their capital and invested their labor to build online businesses. At present, the FCC requires broadband providers to comply with a transparency rule that can provide a good baseline for Big Tech. Under the FCC’s rule, broadband providers must provide detailed disclosures about practices that would shape Internet traffic—from blocking to prioritizing or discriminating against content. The FCC could take a similar approach to

— 846 — Mandate for Leadership: The Conservative Promise into office—though this is not required by law. By resigning, the exiting Commis- sioner enables the President to nominate someone from his own political party to the FCC, and this typically shifts the political balance on the FCC toward the President’s political party. The President generally designates one of the existing Commissioners of the President’s same political party as Chairperson—either on an acting or a permanent basis—on or shortly after Inauguration Day. Under a tradition that dates back a few decades, when a relevant vacancy arises, the President allows the leader of the opposite political party in the Senate to select the person who will serve in the minority Commissioner role. The President then formally nominates the person identified by Senate leadership. This also is not required by law. As specified in the Communications Act of 1934, the FCC’s Chairperson serves as the agency’s CEO and is empowered with significant authority that is not shared with other Commissioners.6 For instance, the Chairperson sets the FCC’s agenda, decides what matters the agency will vote on and when, and has authority to orga- nize and coordinate the FCC’s work.7 There is no separate Senate confirmation process for the position of FCC Chairperson; the President designates one of the Commissioners to serve as Chairperson through a short one-sentence or two-sen- tence letter.8 There are no limits on the number of terms that a person can serve as an FCC Commissioner, though Commissioners need to be nominated and con- firmed for each five-year term. FCC Budget and Structure. In recent years, the FCC has employed between 1,300 and 1,500 people.9 The FCC’s fiscal year 2023 budget request is for approx- imately $390.2 million.10 While Congress appropriates funds for the FCC, the agency’s budget is offset by what are known as regulatory fees—fees the FCC col- lects from the licensees and other entities that it regulates and uses to offset its budget request. The FCC also raises revenue for the government by auctioning spectrum licenses. In fact, the FCC has generated more than $200 billion for the U.S. Treasury through spectrum auctions.11 The FCC is organized into a series of bureaus and offices based on function. These include an Office of General Counsel, Office of Inspector General, Office of Legislative Affairs, Media Bureau, Wireless Telecommunications Bureau, Wireline Competition Bureau, Enforcement Bureau, and more.12 High-Profile FCC Matters. The FCC addresses a number of important mat- ters. For instance, Section 230 is codified in the Communications Act,13 and the FCC has authority to interpret that law and thus provide courts with guidance about the proper application of the statutory language.14 The FCC has addressed “net neutrality” rules and the regulatory framework that should apply to broadband offerings. Any merger that involves a wireless company, broadcaster, or similar entity that holds an FCC license must obtain FCC approval (assuming that the merger will involve the transfer of the FCC license). — 847 — Federal Communications Commission The FCC has facilitated the transition from 3G to 4G and now 5G offerings in two ways. First, it has freed spectrum—the airwaves needed to deliver wireless ser- vices. Second, it has preempted state and local siting and permitting laws that could otherwise slow down the buildout of next-generation infrastructure. One of the FCC’s great success stories from 2017 to 2020 was securing U.S. leadership in 5G. The FCC also administers an approximately roughly $9 billion-a-year program called the Universal Service Fund (USF), which has been funded by a line-item charge that traditional telephone companies add to consumers’ monthly bills. Expenditures from this fund subsidize rural broadband networks and low-income programs as well as connections for schools, libraries, and rural health care facil- ities. Through various COVID-era laws, Congress has also provided the FCC with a one-time $24 billion appropriation for various low-income initiatives. POLICY PRIORITIES The FCC needs to change course and bring new urgency to achieving four main goals: l Reining in Big Tech, l Promoting national security, l Unleashing economic prosperity, and l Ensuring FCC accountability and good governance.15 Reining in Big Tech. The FCC has an important role to play in addressing the threats to individual liberty posed by corporations that are abusing dominant positions in the market. Nowhere is that clearer than when it comes to Big Tech and its attempts to drive diverse political viewpoints from the digital town square. Today, a handful of corporations can shape everything from the information we consume to the places we shop. These corporate behemoths are not merely exercising market power; they are abusing dominant positions. They are not simply prevailing in the free market; they are taking advantage of a landscape that has been skewed—in many cases by the government—to favor their business models over those of their competitors. It is hard to imagine another industry in which a greater gap exists between power and accountability. That is why a new Adminis- tration should support FCC action on several fronts. Specifically, the FFC should: l Eliminate immunities that courts added to Section 230. The FCC should issue an order that interprets Section 230 in a way that eliminates the expansive, non-textual immunities that courts have read into the statute.

— 858 — Mandate for Leadership: The Conservative Promise ENDNOTES 1. 47 U.S.C. § 151, https://www.law.cornell.edu/uscode/text/47/151 (accessed January 23, 2023). 2. 47 U.S.C. § 154, https://www.law.cornell.edu/uscode/text/47/154 (accessed January 23, 2023). 3. Ibid. 4. 47 U.S.C. § 154(c). 5. 47 U.S.C. § 154(b)(5). 6. 47 U.S.C. § 155(a), https://www.law.cornell.edu/uscode/text/47/155 (accessed January 23, 2023). 7. Ibid. 8. Ibid. There are no limits on the President’s authority to designate a different Chairperson from among the existing Commissioners. Further, though it is an open question, it is generally believed that the judiciary would impose limits on the power of the President to remove a Commissioner during his or her five-year term. The question is not settled because Congress did not include an express “for cause” or similar protection against removal in the Communications Act itself. Scholars assume this is because Congress passed the Communications Act in the years between the Supreme Court’s decision in Myers v. United States, 272 U.S. 52 (1926) and Humphrey’s Executor v. United States, 295 U.S. 602 (1935), when it was not entirely clear that Congress could impose a limit on the President’s removal power. However, the Communications Act was significantly amended in 1996, and Congress did not add “just cause” or other protections from removal at that time. Considering the high-profile contemporary debates about the appointment and removal of independent counsels under the Independent Counsel Act, one could reasonably assume that Congress was aware of removal powers and protections for presidentially appointed and Senate-confirmed officials. 9. Chart, “FTEs—Historical and Estimated, Fiscal Years 1986–2023,” in U.S. Federal Communications Commission, 2023 Budget Estimates to Congress, March 2022, p. 17, https://docs.fcc.gov/public/attachments/DOC-381693A1. pdf (accessed January 23, 2023). 10. U.S. Federal Communications Commission, 2023 Budget Estimates to Congress, p. 7. 11. Roslyn Layton, “Spectrum Auctions Have Raised $230 Billion; The FCC’s Authority to Conduct Them Will Lapse Soon If Congress Doesn’t Act,” Forbes, April 29, 2022, https://www.forbes.com/sites/ roslynlayton/2022/04/29/spectrum-auctions-have-raised-230-billion-the-fccs-authority-to-conduct-them- will-lapse-soon-if-congress-doesnt-act/?sh=4d32066908eb (accessed January 23, 2023). 12. For a full listing of the FCC’s Bureaus and Offices, along with their functions and an organization chart, see U.S. Federal Communications Commission, “Organizational Charts of the FCC,” https://www.fcc.gov/about-fcc/ organizational-charts-fcc (accessed January 23, 2023). 13. 47 U.S.C. § 230, https://www.law.cornell.edu/uscode/text/47/230 (accessed January 23, 2023). 14. Thomas M. Johnson Jr., “The FCC’s Authority to Interpret Section 230 of the Communications Act,” October 21, 2020, https://www.fcc.gov/news-events/blog/2020/10/21/fccs-authority-interpret-section-230- communications-act (accessed January 23, 2023). 15. This chapter does not purport to set forth a comprehensive agenda for the FCC. Rather, it focuses on a selected handful of issue areas that may quickly rise to the attention of a new Administration. Similarly, not every contributor to this chapter agrees with every policy idea included here; this document attempts to reflect a range of views and perspectives. 16. Johnson, “The FCC’s Authority to Interpret Section 230 of the Communications Act.” 17. U.S. Department of Commerce, National Telecommunications and Information Administration, “NTIA Petition for Rulemaking to Clarify Provisions of Section 230 of the Communications Act,” July 27, 2020, https:// ntia.gov/fcc-filing/ntia-petition-rulemaking-clarify-provisions-section-230-communications-act (accessed January 23, 2023). 18. Malwarebytes, Inc. v. Enigma Software, 592 U.S. ___ (2020) (Thomas, J., statement respecting the denial of certiorari), https://www.supremecourt.gov/opinions/20pdf/19-1284_869d.pdf (accessed January 23, 2023). 19. See 47 U.S.C. § 230; see also Ray Baum’s Act of 2018, Division P, Title IV, § 401 (codifying the Consolidated Reporting Act), in H.R. 1625, Consolidated Appropriations Act, 2018, Public Law No. 115-141, 115th Congress, March 23, 2018, https://www.congress.gov/115/plaws/publ141/PLAW-115publ141.pdf (accessed January 23, 2023). 20. NetChoice, L.L.C. v. Paxton, 49 F.4th 439 (5th Cir. 2022), https://fingfx.thomsonreuters.com/gfx/legaldocs/ gdpzqyobyvw/alisonn%201.pdf (accessed January 23, 2023). — 859 — Federal Communications Commission 21. Hal J. Singer and Ted Tatos, Subsidizing Universal Broadband Through a Digital Advertising Services Fee: An Alignment of Incentives, Econ One, September 2021, p. 1 (“[T]he current USF mechanism is unsustainable and will fail to meet the needs of its target consumer base within the next five years.”), https://www.econone.com/ wp-content/uploads/2021/09/Digital-Divide-HSinger-TTatos-2.pdf (accessed January 23, 2023). 22. FBI Director Christopher Wray, testimony in video of hearing, Worldwide Threats to the Homeland, Committee on Homeland Security, U.S. House of Representatives, November 15, 2022, at 02:27, https://democrats- homeland.house.gov/activities/hearings/11/04/2022/worldwide-threats-to-the-homeland (accessed January 23, 2023); John D. McKinnon, Arunav Viswanatha, and Stu Woo, “TikTok National-Security Deal Faces More Delays as Worry Grows Over Risks,” The Wall Street Journal, updated December 6, 2022, https://www.wsj. com/articles/tiktok-national-security-deal-faces-more-delays-as-worry-grows-over-risks-11670342800 (accessed January 23, 2023). 23. U.S. Federal Communications Commission, “List of Equipment and Services Covered by Section 2 of the Secure Networks Act,” updated September 20, 2022, https://www.fcc.gov/supplychain/coveredlist (accessed January 23, 2023). 24. H.R. 820, Foreign Adversary Communications Transparency Act, 118th Congress, introduced February 2, 2023, https://www.congress.gov/118/bills/hr820/BILLS-118hr820ih.pdf (accessed March 6, 2023). 25. U.S. Department of State, “The Clean Network,” https://2017-2021.state.gov/the-clean-network/index.html (accessed January 23, 2023). 26. U.S. Government Accountability Office, Broadband: National Strategy Needed to Guide Federal Efforts to Reduce Digital Divide, GAO-22-104611, May 2022, https://www.gao.gov/assets/gao-22-104611.pdf (accessed January 23, 2023). 27. Document No. 144, “Federal Communications Commission: Message from the President of the United States Recommending that Congress Create a New Agency to be Known as the Federal Communications Commission,” U.S. Senate, 73rd Cong., 2nd Sess., February 26, 1934, https://docs.fcc.gov/public/attachments/ DOC-298207A1.pdf (accessed January 23, 2023). 28. 47 U.S.C, Chapter 5, §§ 151 et seq., (accessed March 6, 2023).