The FTC unanimously approved a policy statement Wednesday aimed at bolstering consumers’ rights to self-repair and access to third-party independent repairs by vowing to crack down on manufacturers whose restrictions are deemed to violate antitrust or consumer protection laws. The agency also rescinded a merger-related policy statement on a party-line vote (see 2107190066).
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
FTC scrutiny for the tech industry’s smaller and serial acquisitions will increase if commissioners rescind a 1995 policy statement Wednesday, as expected, antitrust attorneys told us. The commission convenes Wednesday for its second meeting under Chair Lina Khan (see 2107120065). It will vote whether to rescind the policy statement on prior notice and prior approval remedies in transactions.
Amazon and Facebook are attempting to “bully” the FTC by seeking recusal of Chair Lina Khan (see 2107140036), Senate Democrats said in interviews. Republicans were more hesitant to dismiss the filings but credited Khan’s approach. A former FTC general counsel and a legal scholar told us it’s unlikely the companies will succeed.
The Commerce Department is prioritizing regulation that protects intellectual property, human rights and privacy without slowing innovation, Secretary Gina Raimondo said Tuesday. Various legislators and officials at a National Security Commission on Artificial Intelligence summit called for international cooperation, investment and for setting artificial intelligence standards.
The FTC and DOJ will work to update guidelines on mergers and acquisitions and begin the interagency collaboration directed in President Joe Biden’s executive order (see 2107090010), FTC Chair Lina Khan and Attorney General Merrick Garland responded to the EO Friday. Democratic senators and consumer groups welcomed Biden’s call for more vigorous and modernized antitrust.
It will be a challenge for state attorneys general to prove Google has a monopoly over the Android app store market, former FTC and DOJ officials told us Thursday. Consumer groups welcomed Wednesday’s lawsuit from AGs in 36 states and Washington, D.C.
Broadcom monopolized “markets for semiconductor components” for television and broadband internet services “through exclusive dealing and related conduct,” the FTC said, filing charges Friday. The company said it hopes to reach a resolution with the agency that's “substantially similar” to a previous settlement with the European Commission involving the same products. The agency issued a proposed consent order, in which Broadcom would need to “stop requiring its customers to source components from Broadcom on an exclusive or near exclusive basis.” The commission voted 4-0-1 with Chair Lina Khan abstaining. The complaint “is a step toward addressing that problem by pushing back against strong-arm tactics by a monopolist in important markets for key broadband components,” said acting FTC Competition Bureau Director Holly Vedova. Broadcom is a “monopolist in the sale of three types of semiconductor components,” the FTC said, citing chips that are the “core circuitry that run traditional television broadcast set top boxes, as well as DSL and fiber broadband devices.” The company “illegally maintained its power in the three monopolized markets by entering long-term agreements with both OEMs and service providers that prevented these customers from purchasing chips from Broadcom’s competitors,” the FTC alleged. Broadcom disagrees its actions “violated the law and [we] disagree with the FTC’s characterizations of our business, [but] we look forward to putting this matter behind us and continuing to focus on supporting our customers through an environment of accelerated digital transformation,” a company spokesperson said. “We are equally pleased that the FTC investigation into our other businesses has been closed without action.”
Industry groups and consumer advocates will watch closely Thursday when the FTC expects to vote on streamlining internal Magnuson-Moss rulemaking procedures. An affirmative vote could set the stage for an agency rulemaking on privacy, a proposal in which Democrat and Republican commissioners have shown interest (see 2102120046).
Senate Antitrust Subcommittee Chair Amy Klobuchar, D-Minn., is “actively working” to introduce at least one, possibly more, of the six antitrust bills the House Judiciary Committee passed last week (see 2106240071). Klobuchar’s Merger Filing Fee Modernization Act (S-228) passed Wednesday with the House package of antitrust legislation (see 2106240071). “It just shows the momentum” for updating U.S. antitrust law, she told us Thursday. Klobuchar wouldn’t specify which House bill she plans to introduce. “I think there will be others as well,” she said.
The House Judiciary Committee passed bills aimed at Big Tech competition. Members from both parties in interviews defended the committee’s decision to move forward with Wednesday’s markup, despite industry's calls for delay (see 2106220061). The committee was deliberating four other pieces of legislation at our deadline.