The Senate intends to take up the Endless Frontier Act perhaps in the next week in a package of legislation, Majority Leader Chuck Schumer, D-N.Y., said on the floor Thursday. He’s hopeful for a Senate vote this month, he said.
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 Senate Commerce Committee advanced Lina Khan’s FTC nomination to the Senate floor, with four Republicans opposed (see 2105070062). The committee also approved the Endless Frontier Act (S-1260) 24-4 during Wednesday’s markup.
Expect the FTC's new rulemaking group to actively work to fill gaps left in its authority by a recent Supreme Court decision (see 2104270086), former officials said in interviews. Some anticipate more administrative litigation over consumer protection cases.
Despite changes to patent, copyright and criminal law, China remains one of the top countries the U.S. is targeting for weak intellectual property protections, said the Office of the U.S. Trade Representative Friday in its annual special 301 report (see 2004290059). China needs to strengthen such protection and enforcement, fully implement IP measures, stop forcing technology transfers to Chinese companies, open its market to foreign investment, and “allow the market a decisive role in allocating resources,” USTR said. “Severe challenges persist because of excessive regulatory requirements and informal pressure and coercion to transfer technology to Chinese companies, continued gaps in the scope of IP protection, incomplete legal reforms, weak enforcement channels, and lack of administrative and judicial transparency and independence.”
Congress should clarify FTC Act Section 13(b) and “revive” the agency’s “ability to enjoin illegal conduct and return to consumers money they have lost,” all four commissioners wrote in a statement that acting Chairwoman Rebecca Kelly Slaughter delivered to the House Consumer Protection Subcommittee.
Congress should be cautious about legislative proposals that threaten to ban transactions from companies of a specific size, FTC Commissioner Noah Phillips told a U.S. Chamber of Commerce livestream Wednesday. Citing $100 billion in market capitalization as a recent example (see 2104120033), he said such bans could end up applying to companies attempting to compete with those often cited in antitrust conversations. Phillips also criticized attempts to ban Hart-Scott-Rodino mergers, acquisitions and transactions due to the pandemic. The stated rationale was an increase in filings, he said, with the expectation that agencies would be “overwhelmed” and anticompetitive deals would go unnoticed. “The strong would prey upon the weak, and the government would sit there and watch it happen,” he said. When economic fortunes decrease, equity values decrease, companies have less money, and they spend less on M&A, he said, meaning less work for the FTC. “The notion of the overwhelmed agency and the wave of mergers and acquisitions simply wasn’t true,” he said. “It speaks volumes to the kinds of extreme skepticism that certain aspects of our political class apply to M&A generally.”
Representatives from Facebook, Twitter and YouTube denied their business models are based on maximizing user engagement, during a hearing Tuesday in which members of both parties raised concerns. The power of social media companies over people’s lives is “of great concern” to a wide number of legislators, Senate Privacy Subcommittee Chairman Chris Coons, D-Del., told us. “Exactly what statutory, regulatory or voluntary measures can best address it, I think it would be premature after the first hour of our first hearing to say I have an endgame in mind.”
The Senate Commerce Committee will “mark something up shortly” in response to the Supreme Court’s decision in AMG Capital Management v. FTC, Chair Maria Cantwell, D-Wash., told us Thursday (see 2104220068). House Commerce Committee Republicans said the high court’s unanimous decision shows the FTC exceeded its FTC Act Section 13(b) authority. They expressed frustration that Democrats “prevented” the full commission from testifying Tuesday, when acting Chair Rebecca Kelly Slaughter will appear before the House Consumer Protection Subcommittee.
Apple and Google unfairly leverage their dominance over the app store market and engage in intimidation, representatives from Spotify, Match and competing companies told the Senate Antitrust Subcommittee Wednesday. Chairwoman Amy Klobuchar, D-Minn., and ranking member Mike Lee, R-Utah, detailed how the two companies’ unprecedented power lets them make arbitrary decisions that determine users and competitors' fate.
Prompt private-sector reporting about cyber incidents is critical to allowing the U.S. to stay ahead of attacks like SolarWinds, FBI Director Christopher Wray told the Senate Intelligence Committee Wednesday in response to a legislative proposal from Chairman Mark Warner, D-Va., and Sens. Susan Collins, R-Maine, and John Cornyn, R-Texas (see 2103040066).