Overnight Tech: Industry blasts FCC’s revised TV box plan | Cruz slams internet handover | Airbnb cracks down on discrimination | Burritos by drone

LEDE: The pay-television industry and its allies have a clear response to FCC Chairman Tom Wheeler’s new proposal to shake up the television set-top box market: it’s not good enough, and it’s illegal.

Their concerns come even though Wheeler dropped his plan to have pay-TV providers open up their feeds to third-party manufacturers in favor of an app-based approach, where providers will be required to create software for certain “widely deployed” devices. They’re especially worried about an element of the proposal that would allow the FCC to edit the standard license governing their relationship with device makers if the agency fears it would hinder competition. That step, they say, is legal overreach.

{mosads}”This proposal would far exceed the Commission’s legal authority and improperly insert the government into private contract negotiations between pay TV distributors, content creators and device manufacturers,” said cable trade group NCTA in a statement. “This element of the Chairman’s proposal must be eliminated or drastically altered if the Commission hopes to have a sound app-based plan that truly benefits consumers while protecting the critical rights of content creators.” Pay-television companies echoed those concerns in their own statements.

Click here for more on Wheeler’s proposal and the reaction.

LAWMAKERS REACT: “The law is clear and simple,” said Senate Commerce Committee Chairman John Thune (R-S.D.) in a statement. “The FCC does not have the authority to impose technology mandates or to police copyright as Chairman Wheeler has proposed.” Rep. Greg Walden (R-Ore.), who chairs the House Energy and Commerce Committee’s tech subcommittee, declined to comment because he hadn’t learned the details of the item yet.

BUT WHEELER HAS HIS OWN CREW: Sens. Ed Markey (D-Mass.) and Richard Blumenthal (D-Conn.) both praised the new proposal. So did public interest groups, who have been supportive of Wheeler since he announced his original proposal earlier this year. “The modified approach the Chairman has described today addresses the legitimate concerns raised by these parties while preserving the benefits to the public, and fulfilling the Congressional directive that requires the FCC to ensure that viewers do not need to rent set-top boxes from their providers,” said John Bergmayer, senior counsel at Public Knowledge, in a statement.

STILL OUTSTANDING: The commission has yet to move either its broadband privacy proposal or Wheeler’s proposed reforms to the special access market.

And as always, please send your tips, comments and stray observations to David McCabe (dmccabe@digital-staging.thehill.com) and Ali Breland (abreland@digital-staging.thehill.com) and follow us on Twitter: @dmccabe, @alibreland and @HilliconValley.

ICANN’T STOP: Congress has only been in session for two days but the fight over who gets to manage the internet is already brewing. Ted Cruz kindled the fire during the recess, putting out materials against the transition of internet management to an international governing body, including a nifty countdown clock and a video. Today, he spoke on the Senate floor against the move. Later in the day, Sen. John Thune (R-S.D.), Rep. Fred Upton (R-Mich.), Rep. Bob Goodlatte (R-Va.) and Sen. Chuck Grassley (R-Iowa) signed a letter to Attorney General Loretta Lynch and Secretary of Commerce Penny Pritzker, urging them to reconsider the transition. A pro-transition group hosted a phone call arguing against criticism of ceding internet domain management to an international group, saying that it would promote stability and prevent governments from creating their own splintered, domestic internets.

E&C SEPTEMBER PRIORITIES: The House Energy and Commerce Committee’s tech subcommittee will mark up the Anti-Spoofing Act and the Improving Rural Call Quality and Reliability Act next week.

AIRBNB’S NEW DISCRIMINATION OFFENSIVE: The platform that allows users to rent out their properties and personal residences is implementing a set of measures aimed at mitigating racism on the platform. Black Airbnb users have reported numerous instances of discrimination by other users renting out spaces on the platform. This treatment inspired the hashtag #AirbnbWhileBlack which trended on Twitter earlier in the year. The company laid out a new, explicit non-discrimination policy and provided the help of an Airbnb staff member to help users who are discriminated against book a place to stay using the platform.

OPPONENTS STRIKE BACK: Share Better, a coalition of Airbnb opponents with links to the hotel industry based in New York City, distributed statements from several local elected officials condemning the report. “Instead of taking concrete action to address discrimination, like moving to an anonymous profile system as other online marketplaces use or removing their requirement that users waive their right to take legal action when facing discrimination, Airbnb is playing the crisis communications game to hide from their responsibility,” said New York City Councilman Donovan Richards.

ON TAP:

The Open Technology Institute hosts a luncheon on “Fueling The Broadband Economy” at 12:15 p.m.

IN CASE YOU MISSED IT:

Here’s what you missed while you were following the Matt Lauer drama.

European regulators gave Google more time in one of their ongoing antitrust probes.

A slate of GOP committee chairs pushed the administration to stop the ICANN transition.

Some college students can now arrange for a Chipotle burrito to be delivered to them by drone, courtesy of Google parent company Alphabet. They don’t know how lucky they have it.

Michael O’Rielly has some questions about why Metro is turning off the wifi access they’re piloting.

Authorities arrested two men for allegedly hacking federal officials.