The Supreme Court dismissed U.S. v. Microsoft as moot, given the Clarifying Lawful Overseas Use of Data Act (see 1804030057). The Cloud Act allowed DOJ to obtain a new search warrant in a case with data access implications abroad. The case is moot given the original warrant in question was superseded, Justice Samuel Alito said, announcing the decision Tuesday. Software & Information Industry Association Senior Vice President-Public Policy Mark MacCarthy applauded the decision, saying with the law, the U.S. has “an updated legal framework that enhances law enforcement access to critical data for investigations, provides for law enforcement cooperation between the United States and our allies, and establishes strong human rights protections.”

The Commerce Department Bureau of Industry and Security (BIS) denied export privileges to ZTE for seven years. Affiliated companies previously agreed to a combined civil and criminal penalty and forfeiture of $1.19 billion and a seven-year suspended denial (see 1703290058) because of sales of telecom equipment to Iran and North Korea and misleading the U.S. government. The denial, announced Monday, is because ZTE paid bonuses to employees involved in the sales and didn't reprimand them as claimed. "If the $892 million monetary penalty paid pursuant to the March 23, 2017 order, criminal plea agreement, and settlement agreement with the Department of the Treasury did not induce ZTE to ensure it was engaging with the U.S. government truthfully, an additional monetary penalty of up to roughly a third that amount ($300 million) is unlikely to lead to the company's reform," said BIS. The company didn't comment Tuesday.

Re-entering the Trans-Pacific Partnership would empower American tech companies to sell "to millions of customers in the Asia-Pacific region” and boost U.S. competitiveness, TechNet CEO Linda Moore said. She responded Thursday to President Donald Trump wanting to negotiate American re-entry. “The U.S. represents only 4 percent of the world’s population, and modern free trade agreements like the TPP are the key to continue unlocking market access for us to sell to the other 96 percent of the world’s potential customers,” Moore said. “Demagoguing against the TPP was a mistake, and withdrawing from the agreement ceded trade leadership in the region to China,” said Institute for Policy Innovation President Tom Giovanetti, blasting China for “intellectual property theft.”

Reddit identified nearly 1,000 suspicious accounts linked to the Russian troll farm, Internet Research Agency, the social media site announced Tuesday. Reddit didn’t “detect any effective use of these accounts to engage in vote manipulation,” the announcement said. Sen. Mark Warner, D-Va., said Reddit is “distinct among social media platforms” for its user-based content moderation, but all platforms “have a responsibility to do everything in their power to prevent foreign adversaries like Russia from interfering in our elections.”

The recently passed Clarifying Lawful Overseas Use of Data (Cloud) Act (see 1803230038) gives U.S. and foreign law enforcement a more efficient process for gaining access to electronic communications, while creating consistency for corporate terms of service across platforms like Facebook, Google and Twitter, American Enterprise Institute fellow Shane Tews said Thursday. “This law is a first step toward harmonizing privacy laws that can be applied across borders that incentivize clear and accountable privacy, civil liberties, and human rights protections.”

The Office of the U.S. Trade Representative proposed tariffs on some $50 billion worth of Chinese imports, with an accompanying list including some tech and telecom-related products. "Sectors subject to the proposed tariffs include industries such as aerospace, information and communication technology, robotics, and machinery," the USTR announced. The tariffs likely wouldn't take effect before June as a result of the administrative process. A result of a Trade Act Section 301 investigation, the levies are meant as a response to a pattern of forced technology transfers, intellectual property theft and cyber business espionage. The Chinese ambassador to the U.S. warned Monday that China would likely retaliate with tariffs of similar scope in response to Section 301 tariffs. We couldn't reach anyone right away Tuesday at that country's embassy. Tech groups have opposed the U.S. move (see 1803220043). Comments are due May 11, and there is a May 15 USTR hearing, at 10 a.m. in the main hearing room of the International Trade Commission, 500 E St. SW.

Despite growth in over-the-top subscriptions services, global digital pay-TV subscriptions -- including cable, satellite and IPTV -- exceeded 1 billion for the first time in 2017, IHS Markit reported. Subscription streaming video services including Netflix, Hulu and Amazon Prime Video added more than three times the number of subscriptions they did in 2016, said the researcher Tuesday. “Traditional pay TV operators have shown resilience in the face of increased competition, through continued investment in set-top functionality, exclusive content and on-demand services,” said analyst Fateha Begum. Growth in digital pay-TV came largely from Asia-Pacific, driven by IPTV uptake in China. Western Europe added eight OTT subscriptions for every pay-TV subscription. Digital pay-TV subs in North America continued to shrink, losing 3 million homes in 2017, while OTT subscriptions advanced by nearly 30 million, said Begum. “Pay TV services in North America continue to be affected by cord cutting, primarily due to higher average prices for pay TV subscriptions, compared to other global regions.”

U.S. tariffs could especially hurt the information and communications technologies (ICT) industry, many groups said Friday and Monday, singling out China. That country's trade practices concern these groups, but they said tariffs aren't the answer. "Imposition of sweeping tariffs would trigger a chain reaction of negative consequences for the U.S. economy, provoking retaliation," said a letter to President Donald Trump from CompTIA, the Computer and Communications Industry Association, CTA, Information Technology Industry Council, Internet Association, TechNet, Telecommunications Industry Association and other tech and trade groups. "Tariffs on electronics, apparel, and other consumer products would increase prices" and do "little to address the fundamental challenges posed by unfair and discriminatory Chinese trade practices," they said. The Information Technology and Innovation Foundation said much the same thing: "Artificially raising the cost of ICT products by levying tariffs on ICT imports from China would reduce growth of U.S. ICT investments." The White House didn't comment Monday.

Broadcom formally ended its bid to buy Qualcomm Wednesday, after President Donald Trump, acting on a recommendation from the Committee on Foreign Investment in the U.S., signed an executive order Monday blocking the acquisition on national security grounds (see 1803120060). In complying with the order, Broadcom also withdrew its slate of nominees for election to the Qualcomm board, said the company. “Although we are disappointed with this outcome, Broadcom will comply with the Order,” and will “continue to move forward” with its plan to move its co-headquarters to Delaware from Singapore (see 1711020069), said the company. “Whether you support or oppose recent CFIUS decisions, it provides a deliberative process, a speedy outcome and industry certainty,” tweeted FCC Commission Mike O’Rielly Wednesday. “Similar structure needed for 'Team Telecom' to facilitate @FCC interaction!”

Online platforms should commit to a code of principles to combat online disinformation, the European Commission’s High-Level Expert Group told Commissioner for the Digital Economy and Society Mariya Gabriel Monday. The group emphasized the term “online disinformation” over fake news, calling the latter an “inadequate term.” The group recommended online platforms commit to algorithm transparency on news visibility and allow more visibility for reputable news sources. The report was sent to Gabriel the day of release of a Eurobarometer survey. More than 80 percent said fake news is a “danger to democracy.” Traditional media on radio, TV and print is trusted by, respectively, 70 percent, 66 percent and 63 percent, while online news sources and video hosting websites had 26 percent and 27 percent.