Category Archives: regulation

Zuckerberg is not the real culprit. (It’s Mercer.)

By Christopher B. Daly

Facebook founder Mark Zuckerberg is on the hot seat. He is taking a lot of heat this week for Facebook’s role in the assault on American democracy that took place during the 2016 presidential election.

He deserves a lot of the criticism — for not protecting his users’ privacy, for putting jv14ju53t6xpmm9ojuzhprofits above all, for lacking candor at every step of the way.

But he is not the real villain in this piece. The fact is, he was played. Facebook (meaning not just the company but also the vast “community” of users) was used by the real villain.

The moving party in all this was Robert Mercer. Facebook was just sitting there — ripe and perhaps willing to be exploited. But to his credit, Zuckerberg did not embark on a

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US billionaire Robert Mercer in Washington DC in March this year. Photograph: Oliver Contreras/The Washington Post via Getty Images

stealth campaign to change the outcome of our presidential election in ways that damaged the electoral process and stuck us with a president who is — shall we say — not making America great in any way, shape, or form.

That role was played by Robert Mercer. He is the billionaire who decided to take the fortune he made as a hedge fund manager and deploy it in politics.

Here’s a quick bio:

Born in 1946 at the very leading edge of the Baby Boom. Raised in New Mexico.

Got his bachelor’s degree in physics and math at the publicly funded state-run University of New Mexico.

He got experience in writing computer programs at the taxpayers’ expense while working in a weapons lab at Kirtland Air Force Base in Albuquerque.

Then, he topped off his education at the public’s expense by getting a PhD from the University of Illinois (Urbana-Champaign).

Later, he joined the hedge fund Renaissance Technologies, where he made a fortune in the stock market (which functions only because it is regulated, at taxpayer expense, so it does not operate as a den of thieves).

And what was his take-away from all the benefits he derived from all those publicly funded or regulated operations? Apparently, his reaction was a strong hatred of government, regulation, and taxes.

Thanks a lot. After all we did for you, this is the gratitude we get?

It gets worse. Because he is a billionaire (in a society where the rule of law protects him and allows him to keep his money safe), he is able to act on his views in ways that are not available to ordinary citizens. Empowered specifically by the Citizens United ruling, which equated spending money with speaking and therefore allows essentially unlimited spending on politics, Mercer has taken a comprehensive approach:

–donating to conservative “think tanks” that produce the rationales for raging social inequality

–donating directly to Republican campaigns for office (Ted Cruz, Donald Trump, and many others)

–secretly manipulating the outcome of the Brexit campaign

–providing financial backing for Breitbart News and supporting its chief Steve Bannon

–backing Cambridge Analytica, a data-mining and analysis firm, for the specific purpose of influencing American politics. It was Cambridge Analytica that picked Mark Zuckerberg’s pockets and used all that Facebook data to promote Trump and denigrate Hillary Clinton.

Compared to Mercer, Zuckerberg seems like a kinda sweet, perhaps naive, young guy. With any luck, Zuckerberg is wising up fast. He will need to if he wants to keep swimming in the same ocean as sharks like Mercer.

 

 

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Filed under Facebook, media, Politics, regulation, social media, Uncategorized

Should Murdoch be able to buy the L.A. Times?

By Christopher B. Daly 

Conservative media mogul Rupert Murdoch is not finished trying to acquire more news outlets, despite his unsavory legal problems.

His latest target is the L.A. Times, the paper that the conservative Otis and Chandler families used to spearhead the phenomenal growth of LA (and, not incidentally, their family own’s fortunes). A story in today’s NYTimes provides an1923.04.22-Los_Angeles_Times_Front_Page update.

Here’s the situation: Like most big newspapers, the LATimes is in financial trouble, so its owner (the Tribune Co.) wants to sell it. One of the few buyers of newspapers is Rupert Murdoch.

Here’s the problem: Murdoch already owns two television station in Los Angeles, KTTV and KCOP. Like all holders of broadcast licenses in the United States, the two stations are subject to regulation by the Federal Communications Commission. Decades ago, the FCC idealistically promulgated rules that limit the ownership of tv and radio stations and that limit the “cross-ownership” of broadcast entities and newspapers in the same market. The idealistic impulse was to try to keep ownership diverse and prevent anyone from monopolizing the market for news and opinions in a given part of the country.

Here’s the wrinkle: Murdoch runs his News Corp. by basically using his many profitable broadcasting properties (starting with Fox TV) to subsidize his many money-losing newspapers (starting with the New York Post). His next step is to divide his company in two: a broadcasting division and a print division. If he pulls that off, he may be able to skirt the FCC rules.

Stay tuned.

LATimesBuilding

 

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Filed under broadcasting, Fox News, Journalism, media, Murdoch scandal, regulation, Tribune Co.

The business end

of the media business is at stake in a new auction being planned by the FCC. Here’s an update from today’s Boston Globe.

Here is a link to the FCC website (which should have been supplied by the Globe but was not).

Here is a pretty good Wikipedia backgrounder (which also should have been a link in the Globe article; Sheesh, don’t they realize they are publishing on the web?).

Here’s an incredibly complicated visual rendering of spectrum allocation.

 

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Filed under broadcasting, FCC, regulation

Free(r) Radio

By Chris Daly

Radio in the United States has not really been free since Congress passed the Radio Act of 1927 and got in to the business of regulating over-the-air broadcasting.

In a little-noticed good move, President Obama recently signed the Local Community Radio Act, which does not take us all the way back to the wide-open early days of radio but at least makes it possible for people of modest means to get back into the business of radio. The FCC can now start issuing licenses for 100-watt stations.

So, push those buttons on your radio that say “scan” or “search” or whatever and see if you can find some programming not cooked up by some corporate radio giant like Clear Channel.

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Filed under broadcasting, FCC, regulation, Uncategorized