On August 28, 2018, the FCC’s Enforcement Bureau announced a Consent Decree with Marriott International, Inc. (“Marriott”) to resolve an investigation into unauthorized transfers of wireless radio licenses in connection with Marriott’s acquisition of Starwood Hotels & Resorts Worldwide Inc. (“Starwood”). The civil payment levied against Marriott and the other conditions set forth in the Consent Decree serve as a reminder to companies that may not normally be subject to the FCC’s jurisdiction to thoroughly review the regulatory implications of mergers, acquisitions, or other corporate transactions as part of any due diligence conducted before a deal is reached.

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Wi-Fi management or blocking practices have once again seized the enforcement spotlight at the Federal Communications Commission (FCC).  On November 2, the FCC released a Notice of Apparent Liability (Dean NAL) proposing  a $718,000 penalty against M.C. Dean, an electrical contracting company, for allegedly blocking Wi-Fi hotspots at the Baltimore Convention Center.  That same day, the FCC’s Enforcement Bureau (Bureau) released an NAL proposing a $25,000 fine against Hilton Worldwide (Hilton NAL) for its apparent refusal to comply with a Bureau Letter of Inquiry (LOI) investigating the company’s Wi-Fi management practices.  That investigation continues.

The new releases highlight several items of interest: 1) the FCC’s continued focus on Wi-Fi management resulting in blocking activities and alleged malicious interference, 2) the debate among the Commissioners regarding the FCC’s ability to fine companies for such activities under current law and FCC regulations, and 3) the potential expansion of Bureau investigations into the activities of the subsidiaries, affiliates and possibly franchisees of the investigation’s initial target.


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