Columbia Law's Tim Wu to Advise FTC

By SPENCER E. ANTE And THOMAS CATAN

http://online.wsj.com/article/SB10001424052748703313304576132310943386724.html

Silicon Valley has a new fear factor. Columbia University Law School professor 
Tim Wu, an influential academic and author who popularized the term "net 
neutrality," has been appointed senior advisor to the Federal Trade Commission.

Mr. Wu, 38, will start his new position on Feb. 14 in the FTC's Office of 
Policy Planning, and will help the agency to develop policies that affect the 
Internet and the market for mobile communications and services. The FTC said 
Mr. Wu will work in the unit until July 31. Mr. Wu, who is taking a leave from 
Columbia, said that to work after that date he would have to request a further 
leave from the university.

In Mr. Wu's view, which he laid out in a book published last year called The 
Master Switch, new information technologies follow a predictable cycle in which 
open and free systems eventually become controlled by a single corporation or 
cartel. Mr. Wu believes the Internet may follow a similar pattern, as a few 
companies emerge to dominate key sectors: Google in the online search market, 
Amazon.com in retail, Apple in digital media and Facebook in social networking.

"There is a sense that the Internet is becoming more consolidated," said Mr. Wu.

Mr. Wu, an offbeat academic who has attended the popular Burning Man festival 
several times, says the next big technology policy issue is figuring out the 
rules of the road for these emerging platforms, and that is what he will focus 
on. "I would be satisfied with getting together the rules for the Internet 
platform," he said.

A Harvard Law School graduate who clerked for Supreme Court Justice Stephen G. 
Breyer, Mr. Wu has had a surprisingly large influence on telecom policy on 
Capitol Hill. In 2006, he was invited by the FCC to help draft the first-ever 
net neutrality rules that were attached to the merger of AT&T and BellSouth. 
They required the company for 30 months to allow consumers to access any 
content or service of their choice, while barring AT&T from providing faster 
service to any content or service provider.

In 2007, the FCC adopted two of Mr. Wu's proposals for an upcoming auction of 
wireless airwaves. The rules required network operators to support any device 
or application on the spectrum they buy.

At the FTC, Mr. Wu will help carry out its mission to regulate consumer 
protection, antitrust and privacy issues. The agency is jointly responsible 
with the Justice Department for enforcing federal antitrust laws.

One company is likely to take a keen interest in news of Mr. Wu's appointment 
is Google Inc., where Mr. Wu briefly worked as an unpaid fellow in 2008.

Both sides of the FTC have investigated Google practices in recent years. FTC 
officials have suggested that they intend to scrutinize Google closely for any 
signs of anticompetitive behavior.

The FTC's consumer protection bureau has probed Google's collection of wifi 
data through its Street View cars. It's also taken a keen interest in internet 
privacy issues, including "tracking" by advertisers and the use of personal 
data by social networks. It recently proposed a "do not track" system to allow 
people to opt-out of having their actions monitored online, prompting 
objections from the online-advertising industry.

The FTC has also handled competition issues relating to Google and other 
Silicon Valley firms. It performed an exhaustive review of Google's acquisition 
of mobile ad network AdMob, and before that, its purchase of DoubleClick. It 
ultimately cleared both transactions.

The agency has investigated whether Apple's tight control of applications sold 
through its App Store acts as a restraint on competition, according to people 
familiar with the matter. And it has probed whether the existence of 
interlocking boards at several Silicon Valley companies broke antitrust laws, 
prompting among others the resignation of Google's Steve Schmidt from Apple's 
board.

It isn't clear how much Mr. Wu will be focusing on Google at the FTC, but in 
recent comments he's expressed some concern about its growing grip over the 
Internet. Discussing his book at Google's Washington offices in November, Mr. 
Wu said the search giant was close to a tipping point in which, he argues, 
"information empires" move from being benign monopolies to being 
anticompetitive impediments to innovation.

"I don't think anyone can deny that Google has a monopoly over the search 
engine market," he said, sitting on stage next to a Google executive on the day 
that the European Union launched an antitrust inquiry into the company. "It is 
reminiscent in my mind of AT&T in the 1920s."

AT&T, he said, later suppressed inventions like the tape recorder for fear that 
it would challenge its telephone business. The company was eventually broken up 
by the Justice Department in a landmark antitrust suit.
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