A unanimous FTC agreed to a Republican proposal to delay voting on whether to issue orders to large retailers and consumer-goods suppliers to study anti-competitive effects of supply chain disruptions (see 2111100084). Despite Chair Lina Khan’s desire to “expeditiously” begin research, the commission, which recently lost its Democratic majority, agreed 4-0 Thursday to table the vote until this Wednesday, after a motion from Commissioner Christine Wilson.
Karl Herchenroeder
Karl Herchenroeder, Associate Editor, is a technology policy journalist for publications including Communications Daily. Born in Rockville, Maryland, he joined the Warren Communications News staff in 2018. He began his journalism career in 2012 at the Aspen Times in Aspen, Colorado, where he covered city government. After that, he covered the nuclear industry for ExchangeMonitor in Washington. You can follow Herchenroeder on Twitter: @karlherk
The FBI’s decision to withhold the decryption key associated with the Kaseya cyberattack was made with a long-term plan of addressing Russian threats, despite the millions that businesses lost because of the decision, FBI Cyber Division Assistant Director Bryan Vorndran told the House Oversight Subcommittee Tuesday (see 2109210055). National Cyber Director Chris Inglis and Cybersecurity and Infrastructure Security Agency Executive Director Brandon Wales backed the decision.
Privacy laws in Virginia and Colorado show it’s possible to establish an effective legal framework without a private right of action, House Commerce Committee ranking member Cathy McMorris Rodgers, R-Wash., told an FCBA event Tuesday. She urged Congress to pass a “forward-thinking, pro-innovation,” national privacy standard.
Florida’s social media law violates the First Amendment despite the state’s common-carrier arguments, groups argued Monday in supporting the tech industry’s lawsuit (see 2109220064) in case 21-12355 in the 11th U.S. Circuit Court of Appeals. SB-7072 makes it unlawful for sites to deplatform political candidates and requires sites be transparent about policing, unless the site owns a Florida theme park. Groups filing in support of the Computer & Communications Industry Association and NetChoice included tech and telecom interests, consumer advocates, publishers and media representatives. Filers included CTA, Engine, the Information Technology & Innovation Foundation, Chamber of Progress, TechNet, American Civil Liberties Union, Center for Democracy & Technology, Reporters Committee for Freedom of the Press, Cato Institute, TechFreedom and Authors Guild. The law is “a direct threat to healthy and safe online communities by restricting and penalizing online providers’ efforts to exercise their First Amendment rights to moderate content on their private platforms,” CTA argued with 10 other groups, including ITIF, TechNet and the Progressive Policy Institute. The law would open the door to “direct content regulation,” in service of government policing bias, “on the platforms that millions of Americans now use to get their news,” publisher and news associations wrote. The First Amendment “protects the exercise of editorial discretion, including by speakers that host others’ speech,” said CDT. Slapping the label “common carrier” on something doesn’t make it a reality, said TechFreedom: “Even if it did, common carriers retain their First Amendment rights, and they have much broader discretion to refuse service than SB 7072 allows for.”
The White House is pressing Congress to pass legislation with $52 billion for U.S. chipmaking (see 2106090007), White House National Security Council Senior Director-International Economics and Competitiveness Peter Harrell told an AT&T livestream event Thursday. “The bigger picture is we’ve got to get the funding across the finish line,” he said. “Congress has to get the funding across the finish line, and we have to move on expanding capacity here at home and with our allies.”
Legislation to require online marketplaces like Amazon to verify third-party sellers got strong bipartisan support from the Senate Judiciary Committee Tuesday. But leadership needs to confer with the Senate Commerce Committee, which has jurisdiction, said Judiciary Chairman Dick Durbin, D-Ill.
The Senate Judiciary Committee reported DOJ Antitrust Division nominee Jonathan Kanter to the Senate floor Thursday by voice vote (see 2110210033). John Cornyn, R-Texas, was the sole no vote. He said he shares Kanter’s concerns about the tech industry’s influence over consumers but is troubled by Kanter potentially moving away from the consumer welfare standard. Cornyn said Kanter has expressed interest in “competitive objectives” outside the traditional scope of antitrust and using antitrust as a “political hammer.” Sen. Amy Klobuchar, D-Minn., noted support for Kanter from a bipartisan group of nine former Antitrust Division chiefs (see 2109250003), saying he has the experience for the job. The committee 13-9 reported Lucy Koh, nominated to be 9th U.S. Circuit Court of Appeals judge. Voting against Koh were GOP Sens. Cornyn; Josh Hawley, Mo.; Mike Lee, Utah; Ted Cruz, Texas; Ben Sasse, Neb.; Tom Cotton, Ark.; John Kennedy, La.; Thom Tillis, N.C.; and Marsha Blackburn, Tenn.
A “substantial increase” in funding for DOJ’s Antitrust Division for FY 2022 is necessary to deal with the “skyrocketing” amount of merger filings, Attorney General Merrick Garland told the Senate Judiciary Committee on Wednesday. DOJ requested a 9% increase in division funding from FY 2021, to $201 million. The department’s 2022 budget request totals about $35.3 billion. The number of division evaluators has decreased, said Garland, calling antitrust a “key focus” for DOJ: “We need help in that regard.” He cited the case against Google’s alleged exclusionary conduct, among other efforts. The number of attorneys in the division is down, and the department “needs an expansion,” he said.
YouTube, TikTok and Snap agreed to share internal research with the Senate Consumer Protection Subcommittee, the companies' representatives told a hearing Tuesday. Chair Richard Blumenthal, D-Conn., told us he’s going to hold them to that promise and use the findings to develop a full picture in pursuit of legislation.
Senate Judiciary Committee Chairman Dick Durbin, D-Ill., is looking to advance the discussion on a measure that would prohibit online platforms from self-preferencing their own products (see 2110140068). He told us he’s in discussions with ranking member Chuck Grassley, R-Iowa, and Senate Antitrust Subcommittee Chair Amy Klobuchar, D-Minn., about a legislative hearing for the American Innovation and Choice Online Act. “I’m discussing it with both of them,” said Durbin. “We haven’t made a final decision.”