A New York federal court on Tuesday refused to block the planned $56 billion merger between T-Mobile and Sprint, Law360 reports, rejecting a challenge by 14 state attorneys general to the deal.
U.S. District Judge Victor Marrero issued an order siding with the companies, and with the U.S. Justice Department and the Federal Communications Commission, which had already approved the merger. As a result, the deal will likely be able to go forward
During the New York City trial in December, T-Mobile and Sprint had argued argued that the merger would help them to better compete against AT&T and Verizon, especially while racing to roll out 5G wireless networks.
FCC Chairman Ajit Pai expressed satisfaction with the decision. “The T-Mobile-Sprint merger will help close the digital divide and secure United States leadership in 5G, he said. “After the merger, T-Mobile has committed to bringing 5G to 97 percent of our nation’s population within three years and 99 percent of Americans within six years.”
New York Times podcast profiles journalist’s inquiry into Clearview AI
New York Times Journalist Kashmir Hill was interviewed on the NYT’s podcast, The Daily, on Monday, February 10, 2020. Hill detailed her investigation into Clearview AI, an artificial intelligence facial recognition company that can identify people through a huge database compiled of online photos. The technology is already being used by some law enforcement.
After an extensive search for Clearview AI personnel, Hill was finally able to interview the company’s CEO, Hoan Ton-That. In the podcast, Hill details Ton-That’s light-hearted response to her privacy concerns.
Donie O’Sullivan of CNN Business reports: “Clearview AI is controversial for many reasons, but perhaps the most important is its massive database. The company claims to have scraped more than 3 billion photos from the internet, including from popular social media platforms like Facebook, Instagram, Twitter, and YouTube. Not only that, but Clearview retains those photos in its database even after users delete them from the platforms or make their accounts private.”
“The practice has prompted the likes of Facebook, Twitter, and YouTube to send Clearview cease-and-desist letters,” wrote O’Sullivan.
Follow this link to listen to The Daily podcast episode.
FCC to address the size of Priority Access License areas in CBRS auction in February
Federal Communications Commissioner Michael O’Rielly announced that the Commission will vote in the February meeting on the area size of the Priority Access License areas in the Citizens Broadband Radio Service spectrum at 3.5 GigaHertz (GHz), and which will be the subject of a planned FCC auction in June 2020.
In his statement, O’Rielly said, “Having taken the lead on the issue, I’ll admit that it has been a long road to get here, but this important step represents one of the last actions the Commission needs to take to make these critical mid-band licenses available for 5G and other next-generation wireless services.
“Ultimately, this auction will provide the first new, mid-band licenses for 5G (albeit with inferior power limits), and it is expected that, given the importance of mid-band’s capacity and propagation, it will provide a spectrum foothold for those deploying these next-generation networks,” he said. “Yet, since this CBRS structure is the first of its kind to incorporate licensed and unlicensed-like opportunities, it is of interest to a wide variety of users.”
“While there are still some outstanding issues that ought to be reconsidered in this band, such as ways to reduce the protection area sizes and increasing power limits, the auction is not dependent on these being resolved at this exact moment,” said O’Rielly.
The February commission meeting will take place on February 28.
Federal Trade Commission Will Likely Not Be Able to Implement Competition Rules, Panelists Say
Panelists at TechFreedom event said judiciary will prevent the FTC from developing proposed antitrust policies.
WASHINGTON, October 22, 2021 –The Federal Trade Commission’s attempts to use rulemaking authority to issue antitrust policy governing technology companies will be struck down in federal courts, said panelists participating in a TechFreedom event on Thursday.
Recently formed conservative majorities on the Supreme Court and other panels have expressed opposition to the idea that the FTC possesses such rulemaking authority, these panelists said.
Hence, unlike past supreme courts, they current bench is likely to strike down FTC-issued binding rules.
Panelists highlighted former President Donald Trump appointees Brett Kavanaugh and Neil Gorsuch as justices who have opposed legal reasoning often used to permit FTC rulemaking.
Indeed, some panelists said early 20th Century legislation governing the FTC makes the case that the agency was created as an investigative body rather than a regulatory one.
Peter Wallison, senior fellow emeritus at the American Enterprise Institute, said that between five and six Supreme Court justices would ultimately vote to weaken precedents that allow for FTC rulemaking.
The Judiciary Committee of the House of Representatives recently advanced six antitrust bills that attempt to regulate the tech industry and foster greater competition, including the Ending Platform Monopolies Act and the Platform Competition and Opportunity Act.
FTC rules have taken on increased importance in terms of economic regulation due to the frequent inability of Congress to pass major legislation due to partisan gridlock. The FTC has proposed new procedures to ensure competition since Lina Khan was appointed as chair.
However, NERA Economic Consulting on Wednesday concluded that legislative proposals to regulate competition would impose costs of around $300 billion while impacting 13 additional American companies in the near term and more than 100 companies in the next decade.
Study author Christian Dippon contends that the legislation would limit American startup growth and international competitiveness while at the same time increasing costs for Americans.
Public Interest Groups Urge Passage of Six Antitrust Bills Targeting Big Tech
Nearly 60 public interest groups signed a letter to House leaders to call a vote on six antitrust bills.
WASHINGTON, September 2, 2021 – Nearly 60 public interest groups signed a letter Thursday urging the House party leaders to push for a vote on six antirust bills that cleared the House judiciary committee in June.
The goal of the six bills is to rein in the power of Big Tech through new antirust liability provisions, including new merger and acquisition review, measures to prevent anticompetitive activity, and providing government enforcers more power to break-up or separate big businesses. They include American Choice and Innovation Online Act, H.R. 3816, Platform Competition and Opportunity Act, H.R. 3826, Ending Platform Monopolies Act, H.R. 3825, Augmenting Compatibility and Competition by Enabling Service Switching (ACCESS) Act, H.R. 3849, Merger Filing Fee Modernization Act, H.R. 3843, and State Antitrust Enforcement Venue Act, H.R. 3460.
The letter, which was directed at House Speaker Nancy Pelosi, D-California, and House Minority Leader Kevin McCarthy, R-California, were promoting a package of six bills that were the result of a two-year bipartisan investigation that included 10 hearings, featuring the testimony of the CEOs of the major tech companies, 240 interviews, 1.3 million documents and a 450-page report, the letter notes.
“We believe that these bills will bring urgently needed change and accountability to these companies and an industry that most Americans agree is already doing great harm to our democracy,” the letter said. Public Citizen was the first of the 58 groups on the letter.
America has a monopoly problem. Monopoly power lowers wages, reduces innovation and entrepreneurship, exacerbates income and regional inequality, undermines the free press and access to information, and perpetuates toxic systems of racial, gender, and class dominance,” the letter alleged.
“Big Tech monopolies are at the center of many of these problems,” it continued. “Reining in these companies is an essential first step to reverse the damage of concentrated corporate power throughout our economy. The bills that passed out of the House Judiciary Committee, with bipartisan support, do just that and it is imperative that they move forward in the House.”
List of signatories:
- Public Citizen
- Accountable Tech
- Action Center on Race & the Economy
- ALIGN: The Alliance for a Greater New York
- Alliance for Pharmacy Compounding
- American Booksellers Association
- American Family Voices
- American Independent Business Alliance
- American Specialty Toy Retailing Association
- Artist Rights Alliance
- Cambridge Local First
- Center for American Progress
- Center for Digital Democracy
- Center for Popular Democracy
- Committee to Support the Antitrust Laws
- Decode Democracy
- Electronic Frontier Foundation
- Friends of the Earth
- Future of Music Coalition
- Gig Workers Rising
- Global Exchange
- Indivisible Georgia Coalition
- Indivisible Hawaii
- Indivisible Ulster/NY19
- Institute for Local Self-Reliance
- International Brotherhood of Teamsters
- Jobs With Justice
- Kairos Action
- Local First Arizona
- Louisville Independent Business Alliance
- Main Street Alliance
- Mainers for Accountable Leadership
- Media Alliance
- Metropolitan Washington Council, AFL-CIO
- National Employment Law Project
- New York Communities For Change
- New York Communities for Change
- North American Hardware and Paint Association
- Open Markets Institute
- Our Revolution
- PowerSwitch Action
- Public Knowledge
- Running Industry Association
- Secure Elections Network
- Service Employees International Union
- Shop Local Raleigh/Greater Raleigh Merchants Association
- SIMBA (Spokane Independent Metro Business Alliance)
- Small Business Rising
- Stand Up Nashville
- StayLocal, an initiative of Urban Conservancy
- Strategic Organizing Center
- The Democratic Coalition
- Venice Resistance
- Warehouse workers for justice
FTC Commissioner Phillips Warns About Shifting Direction of Agency
Noah Phillips voiced concern about the scope and practices of the Biden administration’s FTC.
WASHINGTON, September 2, 2021 — Federal Trade Commissioner Noah Phillips said at a Hudson Institute webinar on Monday that he’s concerned about the direction the competition watchdog is moving toward considering recent events.
Phillips said the left-leaning voices in Washington and the appointment of Lina Khan to chair the agency has left him wondering about the legacy of the last 40 years of competition regulation in America – which have been hallmarked by the Hart-Scott-Rodino Antitrust Improvements Act of 1976. That legislation effectively gave the FTC the ability to review mergers and acquisitions before they were finalized, rather than afterward, which governed pre-legislation.
Under Biden-appointee Lina Khan, Phillips described how the FTC has done away with the process of early termination. In the past, this process made it unnecessary for every single company to provide advanced notice and advanced approval for mergers. “Historically, parties have been able to come to the agencies and say, ‘You’re not interested in this, can we just go ahead and finish our deal,’ and the agencies have said ‘yes.’”
He said this is no longer the case, and that every single merger must provide advanced notice and approval. “What we’re introducing is an inefficiency in the market for transactions that we have no interest in pursuing, just for the sake of it. I think that’s a problem,” he continued. “My concern is that it is making merger enforcement less effective, less efficient, and less fair.”
Phillips pointed to left-of-center and leftist voices in Congress, such as Rep. David Cicilline, D-New York, Sen. Elizabeth Warren, D-Massachusetts, and Rep. Alexandria Ocasio-Cortez, D-New York, who, at the outset of the pandemic, wanted to ban all acquisitions and mergers—regardless of their merit. He described this view as falling outside of mainstream perspectives, but noteworthy nonetheless.
“I don’t think that is what most people believe,” Phillips remarked. “I don’t think that is what Hart-Scott-Rodino envisions.”
This webinar took place only a couple of weeks after Phillips spoke at the Technology Policy Institute’s 2021 Aspen Forum, where he voiced similar concerns, stating that he feared that this new direction would make it more difficult for the FTC to hear cases that it should, and defended the commission’s record against critics who said it was lax under the Trump Administration.
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