House Judiciary Committee Approves Plans to Rein in Big Tech

Despite significant lobbying efforts by technology companies, the House Judiciary Committee approved the Ending Platform Monopolies Act, the final of six bills proposed to restrict Big Tech’s dominance. The Committee also approved the American Choice and Innovation Online Act, which would ban Big Tech from advantaging their own products, disadvantaging rivals or discriminating between “similarly situated” business users and another bill that would require them to make it easier for users to transport their data to other platforms. The bills still must be approved by the House and Senate to become law. Continue reading House Judiciary Committee Approves Plans to Rein in Big Tech

U.S. Offers Incentives for Countries to Avoid China’s 5G Gear

The U.S. Commerce Department’s Commercial Law Development Program (CLDP) is leading a program to encourage nations to avoid gear from Chinese companies Huawei and ZTE in building their own 5G networks. The workshops on how to do so, combined with a handbook and some financial incentives, are aimed at legislators in Central and Eastern Europe as well as developing countries around the world. The handbook will include case studies of how the United Kingdom, for example, deployed 5G without Chinese equipment. Continue reading U.S. Offers Incentives for Countries to Avoid China’s 5G Gear

Lawmakers Introduce Bills to Address Dominance of Big Tech

The House unveiled five bills aimed at curbing Big Tech companies, including the Ending Platform Monopolies Act, that requires “structural separation of Amazon” and makes it illegal for an online platform to own a business that uses said platform for “the sale or provision of products or services,” that “sells services as a condition for access to the platform” or that “owns businesses that create conflicts of interest.” Another bill would ban platforms from giving advantage its own products and services over those of a rival. Continue reading Lawmakers Introduce Bills to Address Dominance of Big Tech

Government Establishes Task Force to Promote AI Innovation

The Biden administration has formed the National Artificial Intelligence Research Resource Task Force with plans to “develop a roadmap to democratize access to research tools that will promote AI innovation and fuel economic prosperity.” The task force, composed of 12 academic, government and industrial members led by the White House Office of Science and Technology Policy (OSTP) and the National Science Foundation (NSF), will establish the National AI Research Resource (NAIRR). The task force is charged with drafting a strategy to create an AI research system about Americans and finding enough computing power to analyze the data.  Continue reading Government Establishes Task Force to Promote AI Innovation

Senate Passes $250 Billion Bill to Foster Manufacturing, Tech

The Senate passed a bipartisan bill in a 63-32 vote this week that allocates $250 billion for technology R&D to counter foreign competition, primarily from China. The U.S. Innovation and Competition Act (USICA) intends to boost research investment, build semiconductor manufacturing capacity and focus on AI development. The National Science Foundation (NSF) will also play a more significant role. Senator Maria Cantwell (D-Washington) stated the bill is “about investing in that innovation economy of the future.” It still needs to pass the House. Continue reading Senate Passes $250 Billion Bill to Foster Manufacturing, Tech

DC Files Lawsuit Against Amazon Alleging Antitrust Violations

Attorney general for the District of Columbia Karl Racine filed an antitrust lawsuit against Amazon, claiming the tech giant abuses its monopoly power by artificially raising product prices. The suit adds that Amazon blocks vendors from charging lower prices for the same products elsewhere, which results in higher prices for these products on Amazon and other marketplaces. This marks the first time a U.S. government entity has filed a suit against Amazon. Racine stated that, “Amazon has used its dominant position in the online retail market to win at all costs.”

Continue reading DC Files Lawsuit Against Amazon Alleging Antitrust Violations

Amazon’s Profits, Income, Stock Price Skyrocket During 2020

For Q1 2021, Amazon reported record profits of $26 billion, more than the previous three quarters combined, with net income more than tripling to $8.1 billion and revenue of $108 billion, surpassing FactSet’s analyst predictions. In addition to Amazon’s successful quarter, Apple, Facebook, Google and Microsoft all enjoyed major upticks in profits and revenues, the result of the increased need for their products and services during the COVID-19 pandemic. Amazon expects that its Q2 sales will reach between $110 billion and $116 billion. Continue reading Amazon’s Profits, Income, Stock Price Skyrocket During 2020

Senate Judiciary Committee Grills Tech Execs on Algorithms

The Senate Judiciary Committee’s panel on Privacy, Technology and the Law pressed executives from Google’s YouTube, Facebook, and Twitter this week on how user content is shared via algorithms that can be misused. The top Republican on the panel, Senator Ben Sasse (R-Nebraska) stated that the use of such algorithms are “driving us into poisonous echo chambers.” Congress is currently considering the fate of Section 230 of the 1996 Communications Decency Act, which protects platforms from liability for what their users post. Continue reading Senate Judiciary Committee Grills Tech Execs on Algorithms

New York Makes Internet Affordable for Low-Income Families

New York governor Andrew Cuomo signed a bill requiring Internet service providers to offer broadband to low-income families for $15 per month, noting that it is “an essential service.” At the signing, Cuomo was accompanied by former Google chief executive Eric Schmidt, who chairs a state commission on technology. The new mandate was passed by the New York State Legislature. Cuomo also revealed that Schmidt Futures and the Ford Foundation will provide free Internet to 50,000 students in the 2021-2022 school year. Continue reading New York Makes Internet Affordable for Low-Income Families

Coalition of Small Businesses Aims to Weaken Amazon’s Grip

Trade groups representing small merchants in hardware, office supplies, books and groceries are organizing in 12 cities to form Small Business Rising, a coalition for stronger antitrust laws and enforcement of existing ones. They hope new measures will force Amazon to spin off its own business lines that compete with them. The House Antitrust Subcommittee is already considering such legislation but hasn’t yet introduced a bill. Amazon called the efforts “misguided interventions in the free market.” Continue reading Coalition of Small Businesses Aims to Weaken Amazon’s Grip

Supreme Court Allows FCC to Relax Media Ownership Rules

In a 9-0 ruling authored by Justice Brett Kavanaugh, the U.S. Supreme Court loosened local media ownership restrictions, which could enable more industry consolidation. It’s viewed as a victory for broadcasters that wanted to overturn the 2017 decision of the Third Circuit Court of Appeals that found the FCC did not sufficiently consider the effect of changes on minority and female owners. The FCC appeal was supported by News Corp, Fox Corporation, Sinclair Broadcast Group and the National Association of Broadcasters. Continue reading Supreme Court Allows FCC to Relax Media Ownership Rules

The Biden Plan to Deliver Broadband Internet to U.S. Homes

President Biden’s $2 trillion infrastructure plan includes $100 billion to bring high-speed broadcast Internet to every home in the United States. The need for broadband became especially acute during the COVID-19 pandemic in which working, learning and shopping became largely remote. Although the digital divide was first identified during the Clinton administration, multiple government efforts to bridge it thus far have been unsuccessful. Biden also vowed to drive down prices for Internet to make it affordable for everyone. Continue reading The Biden Plan to Deliver Broadband Internet to U.S. Homes

Biden to Issue Executive Order Upgrading U.S. Cybersecurity

President Joe Biden is working on a draft executive order to require companies doing business with the federal government to report hacks within a few days. Homeland Security secretary Alejandro Mayorkas stated the order would also require the companies to use data encryption and two-factor authentication and would combat ransomware and improve protection for industrial control systems, transportation and election security. The SolarWinds hack has prompted the government to pay closer attention to cybersecurity. Continue reading Biden to Issue Executive Order Upgrading U.S. Cybersecurity

AT&T Resists Plan to Bring High-Speed Fiber to Rural Homes

AT&T expressed opposition to the proposal of subsidized fiber-to-the-home for everyone in the U.S., with the argument that rural communities don’t need anything faster than the existing service’s 10Mbps upload speeds. AT&T executive vice president of federal regulatory relations Joan Marsh defined “broadband for the 21st Century” as its VDSL (very high-speed digital subscriber line), a 14-year-old system that uses copper telephone wires for the last mile to the home. She noted the “significant additional cost” to deploy fiber to every home, saying there is “no compelling reason” to justify the expense. Continue reading AT&T Resists Plan to Bring High-Speed Fiber to Rural Homes

Congress Grills Big Tech Executives on Accountability Issues

Prior to a House hearing on social media’s role in extremism and disinformation, Facebook chief executive Mark Zuckerberg submitted written testimony on Section 230, suggesting that “platforms should be required to demonstrate that they have systems in place for identifying unlawful content and removing it.” Section 230 of the 1996 Communications Decency Act holds that platforms are not liable for content posted by their users. In a bipartisan effort, lawmakers are pushing for change. “Our nation is drowning in disinformation driven by social media,” suggested Rep. Mike Doyle (D-Pennsylvania). “We will legislate to stop this.” Continue reading Congress Grills Big Tech Executives on Accountability Issues