Next Tuesday (October 25th), the App Security Project (a project of the Taxpayers Protection Alliance Foundation) is holding a virtual briefing titled, “The Tricks & Treats of Cybersecurity.” The discussion will focus on the importance of cybersecurity amid recent proposals that could put Americans’ devices at risk. We have an all-star lineup with Patrick Hedger (Executive Director for the App Security Project), Lt. General (Ret.) Keith Kellogg (Former National Security Advisor to Vice President Pence), Shane Tews (Non-Resident Senior Fellow, The American Enterprise Institute), and Brandon Pugh (Resident Senior Fellow, Cybersecurity and Emerging Threats, R Street Institute). RSVP here to be part of the discussion.
Meta…verse Big Government
This year, Congress has been awfully distracted by its fixation on antitrust legislation targeting big tech. In fact, a series of bills that would supposedly safeguard consumers from such manufactured horrors as companies using their own products and app stores retaining the ability to keep malware off their marketplaces has been introduced. Now, it’s not only Congress that’s chasing imaginary monsters. The Federal Trade Commission (FTC) is going after Meta for its acquisition of a virtual reality (VR) company, Within, and its fitness app, Supernatural, to improve user experience in their new line of products. It should first be noted that a wider range of app options within VR headsets is a boost for consumers. With VR still in its earliest stages, acquisitions like these are important signals for new and innovative investments in the industry. Most all proponents of technological innovation should be praising the move. However, the FTC found a way to disagree. Saying that the FTC disagrees with this acquisition does not even tell the whole story. The agency had given the move its stamp of approval before FTC staff was overruled by Chair Lina Khan. Most FTC staff likely agreed with the observations above and thought nothing of it. However, Khan decided to proceed with a lawsuit nonetheless, using a series of convoluted arguments to justify the split with her staff. The first line of thought pursued by Khan was that the acquisition gave Meta the ability to horizontally monopolize control of the VR fitness space. This was rationalized by pointing out Meta’s ownership of Beat Saber, a VR game that can essentially be described as Dance Dance Revolution, but with VR light sabers. The argument went that, with Meta owning both apps, competition was – or could be in the future – cut off in VR fitness. Supernatural is a more dedicated fitness app that has separate modules for cardio, boxing, and meditation. While one can certainly work up a good sweat playing Beat Saber, it is far from being a dedicated fitness app. One could just as easily work up a sweat playing a Star Wars title, with actual light sabers, and yet no one would mistake it for an exercise class. The fact that one of Supernatural’s cardio modules bears a loose resemblance to the game does not change the goal of either app.
Similar acquisitions have been made by more traditional gaming systems in the recent past. Nintendo acquired four different gaming systems in the last two years. PlayStation has acquired a whopping 15 gaming systems over the life of its company. And, Xbox has acquired five gaming systems in just the past year. All of these acquisitions got the sign-off from FTC regulators. However, Meta seemingly does not get the benefit of the doubt for pursuing the same course of action that other innovators and developers have for years. All this demonstrates the nakedly political motives behind this lawsuit. Big tech has become a favorite punching bag for policymakers in all corners of the political spectrum. The FTC is now blatantly moving from one flimsy argument to the next – throwing anything at the wall to see what might stick in an effort to punish these frequent targets of wrath. Meanwhile, the agency makes no effort to explain why prior similar acquisitions by other companies got approval, where this one is fought tooth and nail.
New technology always faces an uphill battle. Companies must explain to consumers what the technology even is before then convincing them it is a worthwhile product. VR and the metaverse may open up a new frontier of possibilities for consumers and businesses alike. This should be championed by an agency that ostensibly exists to safeguard competition and innovation. As Meta petitions to have this lawsuit dropped, Lina Khan should consider cutting her losses. She should also consider removing her agency from impeding the path of innovation that – in all likelihood – will create jobs and revolutionize the economy.
Postal Insecurity
For the beleaguered U.S. Postal Service (USPS), delivering the mail on time without torpedoing taxpayer dollars has proven quite the challenge. Policing a vast array of mail crime is even more difficult and requires constant vigilance on the part of America’s mail carrier. With the help of the New York Police Department, the U.S. Postal Inspection Service (USPIS) recently nabbed four people involved in a multi-million-dollar scheme to steal credit cards from the mail and use them at high-end retail stores. Unfortunately, these successful enforcement cases are rare and mail crime too often goes unpunished. It’s imperative that the USPIS focuses on delivering justice. Over the past couple of years, postal consumers have had to make do with lackluster service and rising theft. On the same day that the House Oversight Committee met to discuss postal issues plaguing Pennsylvania, the Cheltenham Township Police Department “advised residents not to put mail with cash or checks inside the blue dropbox outside the Elkins Park Post office on Ashbourne Road. The box, according to police, has been a favorite target for money-hungry thieves.” Pennsylvania is one of the top states for mailed check theft, and these crimes have gone largely unresolved thanks to the USPS’ lackluster investigations process. From March 2020 through February 2021, the USPIS opened about 1,100 mail theft cases, a tiny fraction of the 300,000 mail thefts reported over that time period.
While the USPIS has more than 2,000 employees and a budget of roughly $500 million per year, the service is plagued by mission creep. In April 2021, Yahoo News reported that the service runs an investigation unit known as the Internet Covert Operations Program (iCOP; since renamed the “Analytics Team”) which sounds more like a CIA op than a postal division. According to the news outlet, “[t]he work involves having analysts trawl through social media sites to look for what the document describes as ‘inflammatory’ postings and then sharing that information across government agencies.” As if that isn’t creepy enough, the agency uses facial recognition software during internet searches “to help identify unknown targets in an investigation or locate additional social media accounts for known individuals.” All this snooping has come at the expense of direly needed investigations of criminal activity. According to the IG, about a third of USPIS’ investigative activities, “do not directly support protection of Postal Service assets, Postal Service employees, or the mail system.” Restoring a basic semblance of mail security requires that USPS leadership hold the Postal Inspection Service accountable and tie future funding to core investigative activities.
New agency policies can also ensure that mail is transported speedily and more securely. The USPS already contracts out some of its deliveries via the Contract Delivery Service (CDS), though contractors currently deliver to less than 2 percent of all delivery points. Interestingly, the USPS has consistently overestimated CDS costs (by about 7 percent), which may have led to the agency not using contractors as much as it could have over the past few years. Turbocharging this service could mean more trucks humming along on the last mile with greater security precautions at a fraction of ordinary compensation costs. Contractors, after all, have skin in the game and know too well that stolen mail will lead to the termination of their postal partnerships.
Postal consumers have had to worry about their mail being stolen for far too long. It’s time for the USPS to reassess its mission and deliver on a secure and affordable mail system.
BLOGS:
Monday: TPAF’s App Security Project Hosts Virtual Event: The Tricks and Treats of Cybersecurity
Tuesday: Seventeen Thought Leaders Urge SEC to Withdraw Proposed Climate Disclosure Rule
Wednesday: USPS can deliver on more secure deliveries
Thursday: Op-Ed: Federal Tech Antitrust Scheme Threatens NFL Enjoyment
Friday: TPA Sends Coalition Letter to DOD on Concerns of Air Force’s Adaptive Engine Transition Project
MEDIA:
October 14, 2022: The Center Square ran TPA’s op-ed, “USPS can deliver on more secure deliveries.”
October 17, 2022: WBFF Fox45 (Baltimore, Md.) interviewed me about Peter Franchot.
October 17, 2022: The Postal Times ran TPA’s op-ed, “USPS can deliver on more secure deliveries.”
October 18, 2022: I appeared on KRC 550 AM (Cincinnati, Ohio) to talk about the IRS and wasteful spending in the Virgin Islands.
October 18, 2022: The Daily Mail quoted TPA in their article, “But you said the economy is strong, Joe? Forecasters say a recession is a 100% CERTAINTY within the next 12 months after President said everything was fine while eating ice cream.”
October 18, 2022: Inside Sources ran TPA’s op-ed, “Clandestine Actors From China Are Profiting from FDA’s E-Cigarette Regulations.”
October 19, 2022: Dan Savickas joined ‘The Barrett Brief’ (New Orleans, La.) to discuss the FTC and antitrust legislation.
October 20, 2022: WBFF Fox45 (Baltimore, Md.) interviewed me about gas prices and the Strategic Petroleum Reserve.
October 20, 2022: The Nashua Telegraph (Nashua, N.H.) ran TPA’s op-ed, “Clandestine actors from China are profiting from FDA’s e-cigarette regulations.”
October 20, 2022: Real Clear Markets ran TPA’s op-ed, “Lina Khan and the FTC Chase Imaginary Dragons.”
October 20, 2022: I appeared on WBOB 600 AM (Jacksonville, Fla.) to talk about extending the Trump tax cuts and gas prices.
October 20, 2022: Dan Savickas joined Feature Story News to talk about the IRS.
October 20, 2022: The Northwest Signal (Napoleon, Oh.) ran TPA’s op-ed, “USPS can deliver on more secure deliveries.”
October 21, 2022: Townhall.com ran TPA’s op-ed, “Statewide Flavored E-Cigarette Bans Have Led to Increases in Young Adult Smoking.”
Have a great weekend!
