Our Takeaways: State of the Union 2023

Last night’s State of the Union address covered a lot of ground, but one thing was clear: tech policy issues are moving to the center of U.S. public debate, and President Biden is weighing in. We are glad to see issues of technology and democracy high on the President’s agenda, and we have thoughts on how to maximize this energy and attention to make real progress in the coming year.

Read on for our takeaways on the key issues from the President’s address, and some thoughts on what was left unsaid.

Data Privacy

President Biden rightly called out online platforms for collecting vast amounts of personal data on users without adequate safeguards or transparency, particularly for children—concerns OTI perennially raises that we commend the President for addressing. Last night’s call for strong federal privacy standards echoed the President’s remarks from last year, in which he called for protecting children from online targeted advertising. Congress responded then by bringing the OTI-endorsed American Data Privacy and Protection Act closer to passage than any other attempt at comprehensive federal privacy standards to date.

The continued need to act on these issues should make bringing ADPPA across the finish line a top priority in 2023. The legislation offered very strong protections on much of what the President called for last night, including clear limits on personal data collection and targeted advertising, with special attention to children’s privacy. The emerging patchwork of state-level privacy laws is unsustainable, protecting relatively few people while also needlessly making industry compliance more difficult. Congress’ best response to the President’s new charge is to reintroduce and pass ADPPA this year—a realistic goal given the bill’s bipartisan appeal.

Junk Fees

The President’s speech paid special, welcome attention to unnecessary hidden fees, also known as “junk fees,” throughout the economy—particularly in the internet service market. Indeed, OTI’s research has long identified junk fees, including installation and activation fees, equipment fees, early termination fees, and more as deceptive and burdensome for internet users. Our 2020 Cost of Connectivity study found that ancillary fees alone can add 75% to a monthly internet bill—costs that are rarely disclosed up front that surprise consumers and exacerbate the broadband affordability crisis.

The White House’s fact sheet released ahead of the speech goes into more detail on the administration’s plans, including a ban on early termination fees, implementing the “broadband nutrition label” price disclosure for internet plans, and ending landlord exclusivity deals that lock tenants into a single internet provider. These measures are a welcome step forward in addressing junk fees for internet service and promoting competition in the industry.

The Digital Divide

OTI strongly supported the over $65 billion in broadband investments included in the 2021 Infrastructure Investment and Jobs Act signed by President Biden, which he rightly touted last night alongside a pledge to make sure ​​“every community has access to affordable, high-speed Internet.” While this funding was crucial to beginning to close the digital divide, OTI sees several roadblocks and opportunities for the administration to consider as we all look to make the most of this historic investment.

First and foremost, the FCC is still deadlocked 2-2 without a full slate of commissioners as Gigi Sohn, an impeccably qualified nominee, awaits confirmation. Tackling the connectivity crisis with a deadlocked FCC would tie one hand behind our back; the administration needs to make pressing for a Senate vote a priority and see Sohn confirmed, unleashing our nation’s expert telecommunications agency to hold internet providers accountable and lay the groundwork for sound investments in new infrastructure. Rural and low-income areas especially are in danger of being shortchanged without a fully functional FCC advocating for their needs.

Just one example of where the FCC could make immediate impact with Sohn on board is in expanding and supercharging the ability of its E-Rate program to close the “homework gap” between students with good home internet access and those without. As detailed in much of our previous work, one of the best investments we can make for students is in allowing schools and libraries to use their E-Rate funding to build networks that provide internet access for students at home. This can’t happen with a deadlocked FCC, and is just one area where we are ready to make progress as soon as Sohn is confirmed.

Congress also needs to act on creating a sustainable source of funding for the Affordable Connectivity Program, which is projected to run out of money as soon as next year. Over 15 million households are already relying on the ACP’s $30 per month (or more) to access the internet, and Congress cannot let them down by letting this critical program lapse.

Even as we ensure everyone in the U.S. can get access to affordable and reliable internet service, truly closing the digital divide also means addressing digital literacy and adoption gaps around the country—a task for which there is no sustainable source of federal funding. OTI’s Wireless Future Project started the Airwaves for Equity coalition with the goal of establishing a Digital Equity Foundation (funded in perpetuity through the proceeds of government auctions of the public airwaves) to make grants focused on digital literacy programs and address the problem of digital adoption. Senator Ben-Ray Lujan (D-N.M.) introduced legislation to create the Digital Equity Foundation last Congress, and we’re looking forward to pressing for the creation of the DEF again this year.

Platforms and Transparency

More nuanced and thorny issues of online platform governance were largely left out of the President’s televised address—but the White House fact sheet goes into greater detail. The administration points out that online platforms often inconsistently apply their terms of service when it comes to protecting the privacy of children. As OTI has written many times, a lack of accountability for unevenly applied policies is a hallmark of many platforms’ content moderation efforts. We need to insist on increased accountability and transparency around platforms’ policies, more effective moderation of hate speech and mis- and disinformation, and reporting systems that are responsive to users’ concerns.

Continuing the theme of transparency, the White House also took special note of platform algorithms and their opaque nature, and how these systems can contribute to discrimination. Our own work has examined different methods of increasing algorithmic transparency and accountability, which can serve as a guide for possible action.

Naturally going unmentioned but looming over these discussions is Section 230, currently on the table at the Supreme Court with an uncertain future. The State of the Union’s front-row attendees on the Supreme Court could have a seismic impact on how platforms moderate content, as OTI’s David Morar recently wrote.

Antitrust

Finally, the President expressed a desire to pass legislation addressing the industry consolidation and anti-competitive behavior that power an array of consumer harms in the tech industry. In addition to legislative possibilities, OTI continues to support the work of the FTC under Chair Lina Khan to apply greater scrutiny to major tech companies and mergers. Additionally, recent departures from the National Economic Council are an opportunity for the President to appoint staunch competition advocates in their place who can help form the policy backbone of a strong antitrust agenda.

Ahead in 2023

The coming year is full of potential for progress on key tech policy issues, even in a divided government. As OTI looks to capitalize on the President's attention to broadband access, privacy, and more, we're also looking to make an impact on the tech policy debates that will shape future State of the Union addresses next year, in five years, or even 10 years. Confronting the privacy and equity implications of emerging tech, like generative AI and altered reality technology, is just one example. We anticipate the only constant will be the continued need to collectively navigate new uses of technology and their implications for users, communities, and democracy.