Facebook Posts Strong Earnings, Plans Its Metaverse Future

In Q2 2021, social giant Facebook’s profit doubled from a year earlier to $10.39 billion and revenue rose 56 percent to $29.08 billion, both numbers beating Wall Street expectations. Shares fell 3+ percent in after-hours trading, however, when Facebook predicted that revenue growth will slow for the rest of the year. Through the end of Q2, its stock has grown 22 percent. The company also said that Apple’s privacy changes in the new iOS will have a stronger impact in the current quarter as more users update their iOS devices. Meanwhile, Facebook continues to eye its metaverse future. Continue reading Facebook Posts Strong Earnings, Plans Its Metaverse Future

Biden Assembles a Tough Antitrust Team to Rein In Big Tech

President Biden, who named Big Tech critic Jonathan Kanter to lead the Justice Department’s antitrust division last week, has assembled a strong antitrust team to address concerns about the dominant strength and influence of major tech companies across industries including pharmaceuticals, agriculture, healthcare, commerce and finance. If confirmed by the Senate, Kanter will join the Federal Trade Commission’s chairperson Lina Khan, who is known for her work in antitrust and competition law, and Tim Wu, a long-time advocate of breaking up Big Tech who is now Biden’s special assistant for technology and competition policy. Continue reading Biden Assembles a Tough Antitrust Team to Rein In Big Tech

The FTC Votes Unanimously to Support Right to Repair Laws

The Federal Trade Commission (FTC), under the new leadership of chairperson Lina Khan, voted unanimously to enforce Right to Repair legislation. The vote will ensure that U.S. consumers will be able to repair their own electronic and automotive devices. The FTC published a report in May excoriating manufacturers for not adhering to the Right to Repair rules, one of them the Magnuson-Moss Warranty Act. The Right to Repair movement has been led by the U.S. Public Interest Research Group and iFixit, among others. Continue reading The FTC Votes Unanimously to Support Right to Repair Laws

Senate Judiciary Committee Pursues New Antitrust Legislation

Chuck Grassley (R-Iowa) and Amy Klobuchar (D-Minnesota) of the Senate Judiciary Committee are working together on antitrust legislation similar to some of the measures the House Judiciary Committee approved last month. Grassley has yet to offer specific details of proposed legislation but Klobuchar, who is chair of the judiciary panel’s antitrust subcommittee, said a focus on tech companies that offer their own version of products sold by rivals dependent on their platforms is “at the heart of two of the House proposals.” Continue reading Senate Judiciary Committee Pursues New Antitrust Legislation

EU’s Vestager Calls for Aligned Global Regulation of Big Tech

Margrethe Vestager, executive vice president of the European Commission for A Europe Fit for the Digital Age, is calling for greater global alignment on tech regulation, noting “we do not have a global competition enforcer, but we have global companies.” Vestager added she was “really encouraged” by the Biden administration’s efforts to take similar actions in the U.S. with the 72 actions listed in his recent executive order that focused on Big Tech’s collection of data, surveillance practices and acquisitions of startups. Continue reading EU’s Vestager Calls for Aligned Global Regulation of Big Tech

Biden Executive Order Promotes Net Neutrality, Competition

President Joe Biden signed an executive order with 72 proposals and actions for a “whole-of-government effort to promote competition in the American economy.” Among them, President Biden encourages the FCC to restore net neutrality rules undone by former President Donald Trump, to “consider limiting early termination fees and prevent Internet service providers from making deals with landlords that limit tenant choices,” and to revive the President Barack Obama era Broadband Nutrition Label and its better price transparency. Continue reading Biden Executive Order Promotes Net Neutrality, Competition

Facebook Targets Substack with Newsletter Platform Bulletin

Social media giant Facebook recently unveiled Bulletin, a near-clone of the newsletter platform Substack. Despite its complicated relationship with journalists, Facebook thinks it can succeed by offering them better terms; whereas Substack takes a 10 percent cut of writers’ revenue, Bulletin will take nothing — at least for now. Best-selling authors Malcolm Gladwell and Mitch Albom will be among the first Bulletin writers. Facebook chief executive Mark Zuckerberg said the goal is to “support millions of people doing creative work.” Continue reading Facebook Targets Substack with Newsletter Platform Bulletin

Legislators Planning to Revamp Antitrust Laws for Digital Era

U.S. antitrust laws date back to the days of Big Oil. When a federal judge this week dismissed antitrust lawsuits brought against Facebook by the Federal Trade Commission and 48 states, experts called for a modernization of the laws themselves. The judge who dismissed the lawsuits said that the FTC didn’t prove its claim that Facebook was a monopoly and the states brought their case too long after Facebook’s acquisitions of Instagram and WhatsApp. Representative David Cicilline (D-Rhode Island) said the U.S. needs a “massive overhaul of our antitrust laws.” Continue reading Legislators Planning to Revamp Antitrust Laws for Digital Era

Court Dismisses FTC, States Antitrust Suit Against Facebook

U.S. District Court for the District of Columbia judge James Boasberg dismissed antitrust lawsuits against social media giant Facebook brought by the Federal Trade Commission and 48 states. The judge said the states waited too long to bring up a case on deals made in 2012 and 2014 and that prosecutors failed to prove that Facebook holds a monopoly over social networking. The FTC can bring the case back in 30 days but the judge said it would require a lot more detail. Facebook’s stock rose 4.2 percent in the wake of the news. Continue reading Court Dismisses FTC, States Antitrust Suit Against Facebook

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

Another Call for the Creation of a Privacy Enforcement Agency

Senator Kirsten Gillibrand (D-New York) has revisited her Data Protection Act of 2020 to add the creation of a government agency that would regulate and enforce federal privacy laws. She noted that, “Big Tech companies are free to sell individuals’ data to the highest bidder without fear of real consequences … a data privacy crisis is looming over the everyday lives of Americans.” The revamped version, more likely to be passed during the Biden administration, also includes sections on antitrust and civil rights. Continue reading Another Call for the Creation of a Privacy Enforcement Agency

Antitrust Law Authority Lina Khan Appointed Chair of the FTC

In a largely bipartisan vote, the Senate appointed antitrust law expert and Columbia Law School associate professor Lina Khan as chair of the Federal Trade Commission after earlier adding her to the agency. Senator Amy Klobuchar announced Khan’s appointment as FTC chair. At 32 years of age, Khan is the youngest person to ever join and lead the FTC. The legal scholar has also been a consistent critic of Big Tech, so her confirmation is evidence that lawmakers from both political parties agree that it is time to further evaluate the growing dominance of those companies. Continue reading Antitrust Law Authority Lina Khan Appointed Chair of the FTC

MoviePass Settles with FTC Over Fraud, Data Security Issues

MoviePass, which shut its doors in January 2019, just settled with the Federal Trade Commission over allegations that it prevented customers from using the service as advertised and did not protect their data privacy. The company offered users one movie ticket per day for any movie at any theater for $9.95 a month but soon had to raise subscription fees and limit movie tickets. The FTC accused the company of deceptively marketing its services, invalidating customer passwords to prevent users from obtaining tickets, and failing to secure user data. Continue reading MoviePass Settles with FTC Over Fraud, Data Security Issues

Amazon Sidewalk Will Launch Mesh Networks for IoT Devices

On June 8, Amazon will introduce its new Amazon Sidewalk program that allows some small smart devices — Ring Floodlight and Spotlight cameras, for example, and Echo Dot smart speakers and Echo Show smart displays — to share low-bandwidth home Wi-Fi networks among neighboring Amazon customers. On June 14, the network will expand to include third-party product Tile, connected to keys. All devices will become part of Amazon Sidewalk by default. The idea is that if one network drops out, the device can move to another nearby signal.

Continue reading Amazon Sidewalk Will Launch Mesh Networks for IoT Devices

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

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