Former President Donald Trump sued Facebook, Google, Twitter and their CEOs Wednesday, alleging illegal online censorship. Experts dismissed this as a baseless effort without First Amendment grounds.
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 House Judiciary Committee missed an opportunity by marking up six antitrust bills without holding a post-introduction hearing (see 2106250062), an aide for the New Democrat Coalition told us Tuesday. House Antitrust Subcommittee Chairman David Cicilline, D-R.I., told reporters he and ranking member Ken Buck, R-Colo., will continue seeking support from Democratic and Republican members, including the New Democrats and the House Problem Solvers Caucus.
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.”
The FTC voted along party lines Thursday to “streamline” agency rulemaking procedures and remove hurdles to issuing compulsory demands in investigations (see 2106300001). The decisions remove policy constraints that hindered enforcement, making commissioners more nimble when investigating companies, Chair Lina Khan said during Thursday’s public meeting. Republicans said they weren’t given enough time to study the proposals that will reduce transparency, public input and commission oversight.
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 for 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 wrapped up the previous day’s markup Thursday by passing its sixth antitrust bill aimed at Big Tech competition (see 2106230063). The Merger Filing Fee Modernization Act (HR-3843), passed 29-12. Republicans voting yes: House Antitrust Subcommittee ranking member Ken Buck, Colo., and Reps. Matt Gaetz, Fla.; Chip Roy, Texas; Victoria Spartz, Ind.; and Burgess Owens, Utah. The State Antitrust Enforcement Venue Act, passed 34-7. Republicans voting no on HR-3460: Darrell Issa, Calif.; Tom McClintock, Calif.; Thomas Massie, Ky.; and Michelle Fischbach, Minn. Democrats voting no: Zoe Lofgren, Eric Swalwell and Lou Correa, all from California. The Augmenting Compatibility and Competition by Enabling Service Switching Act, passed 25-19. Republicans voting yes: Buck, Gaetz and Owens. Democrats voting no: Lofgren, Swalwell and Correa. HR-3826, the Platform Competition and Opportunity Act, passed 23-18. Republicans voting for HR-3849: Buck, Gaetz and Dan Bishop, N.C. Democrats voting no: Lofgren, Swalwell and Correa. The American Choice and Innovation Online Act, passed 24-20. Republicans voting for HR-3816: Buck, Gaetz and Owens. Democrats voting no: Lofgren, Swalwell, Correa and Greg Stanton, Ariz. The Ending Platform Monopolies Act (HR-3825) passed 21-20. Republicans voting yes: Buck and Gaetz. Democrats voting no: Lofgren, Swalwell, Correa and Stanton. House Speaker Nancy Pelosi, D-Calif., told reporters there was “concern on both sides of the aisle about the consolidation of power of the tech companies, and this legislation is an attempt to address that.” Republicans plan to introduce alternative legislation to hold Big Tech accountable, said House Judiciary Committee ranking member Jim Jordan, R-Ohio: “Rather than address Republican concerns of bias and censorship on the internet, Democrats spent the last two days pushing radical antitrust legislation that will systematically change the United States economy.”
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.
Senate Intellectual Property Subcommittee Chairman Patrick Leahy, D-Vt., expressed confidence in the Patent and Trademark Office and the Patent Trial and Appeal Board at a subcommittee hearing Tuesday, a day after a key Supreme Court decision (see 2106210036). Leahy said he respects the U.S. v. Arthrex ruling and has confidence the PTO and PTAB will carry out their duties for the Leahy-Smith America Invents Act. The law shifted the U.S. from a first-to-invent system to a first-to-file system. Leahy said Congress must continue to address patent quality issues on the front end. A strong patent system that protects American inventions is critical to economic success, job creation and global competitiveness, said ranking member Thom Tillis, R-N.C. Tillis suggested Congress should consider creating a “gold-plated” patent with a more rigorous, more costly examination process to ensure patents are truly innovative and the innovation is “virtually impossible” to challenge. To improve patent quality, University of Utah law professor Jorge Contreras suggested Congress increase PTO “vigilance to detect potentially inoperable inventions,” heighten examination requirements, allow more public input and increase penalties for fraud. “Strong patents encourage and protect innovation, and are critical to our overall economy,” said Acushnet Company Vice President-Patents Troy Lester. “Overly broad patents, in contrast, are detrimental to U.S. manufacturing companies, often stifling innovation.” Instead of wasting “resources of our nation’s industries on low quality patents, we need to implement ways to improve patent quality on the front end,” said Cree Chief IP Counsel Julio Garceran.
Bipartisan legislation scheduled for House Judiciary Committee markup Wednesday would upend centuries of U.S. antitrust law and harm consumers, industry groups said this week. Antitrust Subcommittee ranking member Ken Buck, R-Colo., urged Republicans to come together and hold Big Tech accountable. Senate Antitrust Subcommittee ranking member Mike Lee, R-Utah, accused House progressives of taking advantage of conservatives’ “justified anger” against Silicon Valley.