Top Stories

  • President Donald Trump threatened to either “strongly regulate” or shut down social media companies in a series of Twitter Inc. posts after the platform placed fact-checking labels on a pair of the president’s tweets for the first time Tuesday for making unsupported claims about mail-in voting. Trump said social media sites are aiming to silence conservative voices and need to stop or face certain actions, but there is no evidence that the president has the power to shut down a private social media platform. (Bloomberg)
  • In a confidential whistleblower’s complaint filed with the Securities and Exchange Commission, a consortium of Facebook Inc. insiders and critics allege that the company has failed to warn investors about the proliferation of illegal drug sales on its platforms and its struggles to crack down on such activities. Facebook spokesperson Joe Osborne said the company hasn’t seen the official complaint yet, but that “we’ve regularly disclosed potential risks related to content in our SEC filings, including at least four times in the last year.” (The Washington Post)
  • At least 11 news stations have aired parts of a media package, which includes talking points, video footage and other corporate messages, that Amazon.com Inc. sent to local newsrooms in an effort to paint Amazon’s coronavirus response in a positive light ahead of its shareholder meeting today, according to an analysis of local news coverage and reporters who were sent the materials. Only one station acknowledged that the information had come verbatim from Amazon. (The Verge)

Chart Review

Events Calendar (All Times Local)

05/27/2020
WSJ’s Future of Everything Festival virtually presents: “Future Of Connectivity” feat. Tim Berners-Lee
FedScoop virtual event on federal adoption of zero-trust security 9:00 am
The Atlantic Council’s virtual event on drone attacks against critical infrastructure in the Middle East 9:00 am
New America Ranking Digital Rights’ launch of second #ItstheBusinessModel report on viral harmful content 11:30 am
ITIF event on cybersecurity in a time of physical distancing 12:00 pm
Cyberspace Solariums Commission’s Digital Event #7: Preserving and Employing the Military Instrument of Power in Cyberspace 12:00 pm
Lincoln Network’s fireside virtual chat with FCC Commissioner Mike O’Rielly and telecommunications expert Joel Thayer of Phillips Lytle LLP 1:30 pm
Johns Hopkins’ webinar on COVID-19 testing and digital contact tracing guidelines 2:00 pm
05/28/2020
Committee for Justice’s webinar on GDPR, two years later 1:00 pm
The Atlantic’s virtual event: “The Big Story: The Sprawling Universe of QAnon” 2:00 pm
Pillsbury roundtable webinar on digital payments platforms 2:30 pm
05/29/2020
Center for Strategic and International Studies’ virtual discussion with JAIC Director Lt. Gen. John N.T. “Jack” Shanahan on artificial intelligence and defense 9:30 am
SHLB Coalition’s webinar on congressional broadband legislation 1:00 pm
View full calendar

Morning Consult Debuts Daily Consumer Confidence Tracking Data

As the coronavirus outbreak continues to upend global markets and roil businesses, Morning Consult is committed to delivering daily economic data on how consumer confidence is shifting in these economically uncertain times.

Recently, we debuted our newest product, Morning Consult Economic Intelligence: Global Consumer Confidence, the most robust data set on consumer confidence available today.

Click here to learn more or speak to one of our specialists.

General

Biden Supports California ‘Gig’ Worker Law Aimed at Uber
Amir Efrati, The Information

The Democratic nominee for president signaled Tuesday night that he doesn’t plan to make things any easier for companies like Uber and DoorDash over thorny labor issues if he wins the election. Joe Biden said he supported a recently passed California state law, called AB5, that aims to force Uber and its ilk to reclassify their drivers or delivery couriers as employees instead of keeping them as independent contractors who have fewer benefits.

Uber and Lyft Drivers Sue for New York Unemployment Benefits
Noam Scheiber, The New York Times

Doh Ouattara drove for Uber and Lyft from 2016 until mid-March of this year, when he became concerned about the pandemic. With three children under 6 to provide for, he decided to apply for unemployment benefits.

Apple to reopen about 100 U.S. stores, most with curbside pickup
Stephen Nellis, Reuters

Apple Inc plans to reopen about 100 U.S. stores, mostly with curbside pickup but some with walk-in service, the company said on Tuesday. Apple shuttered stores worldwide as the novel coronavirus pandemic spread but has slowly opened them based on local health data. 

Google to start reopening offices, targets 30% capacity in September
Praveen Paramasivam, Reuters

Alphabet Inc’s Google said on Tuesday it would reopen buildings in more cities at roughly 10% of their capacity beginning July 6 and scale it up to 30% in September, if conditions permit. Google and its peer Facebook Inc had allowed their employees to work from home in early March following tough government-mandated restrictions to contain the coronavirus.

As Uber Drivers Hope for Unemployment Benefits or U.S. Loans, a Lucky Few Get Both
Joshua Brustein, Bloomberg

Ron Parise has spent about 50 hours a week for the last two years on the roads of Cape Coral, Florida, shuttling tourists and snowbirds between their rentals and the airport for Uber Technologies Inc. and Lyft Inc. All that came to a sudden stop in late March, when the arrivals gates went quiet and Parise’s wife insisted he stay home to avoid exposing himself to the coronavirus.

SpaceX’s launch heralds a new era of human spaceflight
Denise Chow, NBC News

Nearly nine years after astronaut Doug Hurley piloted the space shuttle Atlantis on the final flight of NASA’s shuttle program, he’s preparing once again for what is slated to be one of the most important launches in the agency’s history. Hurley and fellow astronaut Bob Behnken are scheduled to launch Wednesday on a test flight to the International Space Station aboard SpaceX’s Crew Dragon capsule.

US drone delivery service takes flight to battle coronavirus
Patrick McGee, Financial Times

Zipline launches first emergency unmanned system to transport medical supplies. 

Sick Days
Russell Brandom, The Verge

Instacart promises a safer way to shop, but workers tell a different story.

U.S. Futures, Europe Stocks Gain Amid EU Stimulus: Markets Wrap
Constantine Courcoulas, Bloomberg

U.S. equity futures and European stocks advanced as the European Union put the final touches on a fiscal stimulus proposal to be funded via EU debt. The common currency swung to a gain.

Intellectual Property and Antitrust

Google faces antitrust case in India over payments app
Aditya Kalra and Aditi Shah, Reuters

India’s antitrust body is looking into allegations that Alphabet Inc’s Google is abusing its market position to unfairly promote its mobile payments app in the country, five sources familiar with the case told Reuters. The complaint was filed in February and the Competition Commission of India (CCI) has kept the identity of the complainant confidential, the first source with direct knowledge of the case said.

Amazon in Advanced Talks to Buy Self-Driving-Car Tech Company Zoox
Cara Lombardo and Tim Higgins, The Wall Street Journal

Amazon. com Inc. is in advanced talks to buy Zoox Inc. in a move that would expand the e-commerce giant’s reach in autonomous-vehicle technology. The companies are discussing a deal that would value Zoox at less than the $3.2 billion it achieved in a funding round in 2018, according to people familiar with the matter.

Telecom, Wireless and TV

Intelsat Joins SES in Committing to C-Band Auction of Airwaves
Todd Shields, Bloomberg

Intelsat SA said it filed a commitment with the Federal Communications Commission to give up airwaves that are to be auctioned for use by mobile broadband, preserving its positioning for a payout from the sale.

SpaceX signs testing agreement with US Army for use of Starlink network
Darrell Etherington, TechCrunch

SpaceX  has signed a new agreement with the U.S. Army that will see that defense service test SpaceX’s forthcoming Starlink satellite-based broadband network over the course of three years to evaluate its usefulness in serving their needs.

White House to Seek Comment on National 5G Security Strategy
Mariam Baksh, Nextgov

The National Telecommunications and Information Administration has posted a request for public comment on how fifth-generation telecommunications networks should be implemented to support the White House’s strategy for securing the technology.

Mobile Technology and Social Media

Facebook Ran Multi-Year Charm Offensive to Woo State Prosecutors
Naomi Nix, Bloomberg

Sheryl Sandberg’s schedule was packed as the Facebook Inc. chief operating officer arrived in Portland, Oregon, for a summer forum of state prosecutors who were meeting to talk shop and share ideas with one another. Sandberg was slated to chat with the state officials about corporate citizenship in the digital age during a private morning session that Facebook had organized at the downtown Hilton Hotel in June 2018

Facebook renames its service that will let people send Libra digital currency to one another
Jessica Bursztynsky, CNBC

Facebook announced Tuesday it’s renaming and rebranding its digital wallet from Calibra to Novi. The effort, which debuted last year, is part of the company’s ambitious plan to venture into the digital currency space.

Reddit does moderation differently — and it’s ignited a war on the platform
David Pierce, Protocol

Users and mods have always fought on Reddit. But when a group of “PowerMods” was accused of having too much control, the ensuing brawl hit every corner of the platform.

ByteDance Hit $3 Billion in Net Profit Last Year
Katie Roof and Zheping Huang, Bloomberg

TikTok’s parent ByteDance Ltd. generated more than $17 billion in revenue and more than $3 billion of net profit last year, figures that show the world’s most valuable startup is still growing at a brisk rate, according to people familiar with the matter.

Cybersecurity and Privacy

Key Senate Democrat withdraws support from House measure on web browsing data
Chris Mills Rodrigo, The Hill

Sen. Ron Wyden (D-Ore.) has pulled his support from an amendment aimed at blocking law enforcement from collecting web browsing history without a warrant after comments made by Rep. Adam Schiff (D-Calif.) about its scope. The amendment from Reps. Zoe Lofgren (D-Calif.) and Warren Davidson (R-Ohio) would be attached to a bill reauthorizing three expired surveillance programs under the USA Freedom Act.

State-Based Contact-Tracing Apps Could Be a Mess
Andy Greenberg, Wired

While governments around the world have launched nationwide Covid-19 contact-tracing smartphone apps over the last months, the United States has pointedly not. Instead, it seems like the apps designed to detect coronavirus exposure stateside will launch on a state-by-state basis—and they may be anything but united.

Census Bureau needs help protecting its networks for the next decade
Jackson Barnett, FedScoop

How should the Census Bureau protect its networks for the next decade? That’s the prime question posed in a recent request for information from the agency tasked with producing data about the American people and economy.

Surveilling employees who work from home could do more harm than good
Jared Newman, Fast Company

Ask David Heinemeier Hansson, the cofounder and CTO of Basecamp, how he feels about companies that use software to surveil their remote workers, and you’ll probably hear a few expletives. As The Washington Post, NPR, and The New York Times have reported, computer monitoring software products such as Interguard and Time Doctor have flourished during the coronavirus pandemic as companies try to keep tabs on far-flung workers.

Opinions, Editorials and Perspectives

A Presidential Smear
The Editorial Board, The Wall Street Journal

Donald Trump sometimes traffics in conspiracy theories—recall his innuendo in 2016 about Ted Cruz’s father and the JFK assassination—but his latest accusation against MSNBC host Joe Scarborough is ugly even for him. Mr. Trump has been tweeting the suggestion that Mr. Scarborough might have had something to do with the death in 2001 of a young woman who worked in his Florida office when Mr. Scarborough was a GOP Congressman.

Trump has no decency. It’s time for Twitter to show some.
Karen Tumulty, The Washington Post

The president of the United States has no decency. It is time for the social media platform he uses to spread vile conspiracy theories to show some — or at the very least, to follow what it claims to be its policies and the rules that it enforces where others are concerned.

AI can battle coronavirus, but privacy shouldn’t be a casualty
Philip Howard, Lisa-Maria Neudert, TechCrunch

South Korea has successfully slowed down the spread of coronavirus. Alongside widespread quarantine measures and testing, the country’s innovative use of technology is credited as a critical factor in combating the spread of the disease.

The Best Shaming Happens in Private
Graeme Wood, The Atlantic

Internet mobs go after those who break social-distancing rules, but society has a better way to enforce norms.

Research Reports

Section 512 Study
U.S. Copyright Office

The United States Copyright Office has completed its public study to evaluate the impact and effectiveness of the safe harbor provisions contained in section 512 of title 17, United States Code. This is the first government study of the effectiveness of the notice-and-takedown system since its enactment over twenty years ago.

Morning Consult