11.11.2014
Good to Know: November 11 is Alibaba’s Singles’ Day in China (and Veterans Day in the U.S. – thank you to all those who have served and are currently serving). Alibaba, the Chinese e-commerce site, is responsible for what is basically the anti-Valentine’s day and also the biggest e-commerce day of the year. Sales have already reached over $8 billion. We’re starting to reconsider Cyber Monday and Black Friday.
THE SKINNY.
The InterWebs Is All Abuzz…
Because on Monday, November 10, President Obama ensured that we’d be talking about net neutrality all week when he came out with a strong statement and video in support of net neutrality rules that would keep the Internet open and free.
Why Is This Big Deal?
First, the back-story… For many years, the U.S. Federal Communications Commission (FCC) has been working towards implementing net neutrality rules. However, the Commission’s efforts have been consistently challenged in court – first by Comcast and then most recently by Verizon. In January 2014, the D.C. Circuit struck down most of the Commission’s rules (namely no blocking and no discrimination). Subsequently, the FCC had started a lengthy, record breaking public comment process of trying to figure out what rules to adopt and how it would legally carry out implementation of these rules. Through this process, the FCC heard from about 3 million plus people, and many of you want the FCC to reclassify broadband services under Title II of the Communications Act (Title II) as a common carrier service.
What is Title II, and Why Should I Care?
By reclassifying broadband services under Title II, it is argued that this would prevent ISPs from discriminating against certain types of services and content and stop them from charging Internet users a premium just to access our favorite online shows (kind of like how you have to pay more for HBO). Proponents say going down the Title II route will protect the open Internet and allow us to do as we please online. ISPs/cable companies are not feelin’ this idea and think things should be left just as they are.
Ok? So What’s the Punch Line …
Well, there’s been intense debate about what rules are appropriate and the best legal approach to get there. Last week, we told you about the WSJ leak where we found out that the FCC was considering a hybrid legal approach, which pretty much everyone and their mother hated. Then yesterday, President Obama called for strong rules that would prevent discrimination and blocking while encouraging transparency. And, Obama recommended that the FCC (an independent agency) implement these rules by reclassifying broadband services under… wait for it … TITLE II! #MicDrop
What Does Obamacare Have to Do With This?
In a nutshell, the Democrats and Internet companies came out in support of the President’s statement. As expected, Republicans and ISPs were not pleased. Speaking of Republicans, Senator Ted Cruz (R-TX) went there and said that net neutrality is the Obamacare for the Internet. Needless to say, the Internet responded, and it wasn’t pretty.
Till Next Year …
President Obama’s statement is a game changer. Originally, we all thought we’d see an official FCC proposal come out this December but looks like things have been pushed back until the new year.
What Else Is Going On This Week?
They’re Having the Last Laugh …
Remember when Facebook told you that you’d have to download its Messenger app to send messages via your phone? And we were all like ain’t happening … Well, turns out that 500 million of us gave in. The social network now has over 1 billion users using messaging and has passed 500 million monthly users on its Messenger app in addition to 600 million active users on its newly owned WhatsApp.
Join the Social Movement ….
In the fight against Ebola, Internet companies are coming out big. Last week, Facebook released a donations function for its users to contribute towards these efforts. Mark Zuckerberg and his wife personally donated $25 million, and this week, Google donated $10 million to some non-profits and announced that it would donate $2 dollars for every dollar donated through its new campaign. Oh, Larry Page and fam also contributed about $15 million.
More Stolen Data…
The U.S. Postal Service is the latest victim in data theft. Though the public is just learning about it, back in September, databases containing about 800,000 employees and retirees personal information (names, birth dates, addresses, and Social Security numbers) were compromised. The government’s not sure who is responsible, but they think it looks like work of Chinese hackers.
The Streets Are Talkin’
Let’s talk more about Alibaba. Last week, we told you about Alibaba’s much anticipated first earnings report. The company killed it reporting its profit had increased by about 16%, and it’s now valued at $250 billion. Now, its CEO Jack MA is saying that AliPay (its financial services arm) will definitely be going public. Note to self: Should’ve jumped on the bandwagon earlier.