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Cable Technology Feature Article

September 02, 2008

What Congress Can Do to Your Business Model

By Gary Kim, Contributing Editor

Just a reminder: when you are in the public telecommunications or video entertainment business, the government can make or break your business model. That can happen when Congress passes or does not pass legislation, when the Federal Communications Commission or EU regulatory bodies make new rules or abolish old rules, or when Congressional or legislative bodies or courts decide that some practices may violate existing statutes.
NebuAd is the latest example of that. The behavioral tracking software provided by NebuAd has come under scrutiny by U.S. Congressmen who think the notification policies, at the very least, run afoul of privacy statutes. As a result, it appears that all of the service providers who had been testing or maybe using the software have cancelled those tests and trials.
Depending on how long it takes for the political heat to dissipate, and on how long service providers take to revise notification procedures to satisfy Congressional watchdogs, NebuAd's fortunes and survival likely depend.
The old adage is that "your wallet is not safe when Congress is in session." In NebuAd's case, survival likely is the danger.

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Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary's articles, please visit his columnist page.

Edited by Mae Kowalke