Week in Review

Social media

  • Microsoft Corp. was in talks to buy the U.S. operations of TikTok from its Chinese parent, Bytedance Ltd., but suspended the discussions after President Donald Trump told reporters late Friday that he would prefer to ban the app and wouldn’t back a sale, according to people familiar with the matter.
  • Federal agents on Friday arrested 17-year-old Graham Ivan Clark of Tampa, Fla., who is accused of leading the July 15 hack that took over the Twitter accounts of high-profile users, such as former Vice President Joe Biden, to solicit bitcoin. Federal prosecutors also charged 19-year-0ld Mason Sheppard, who lives in Britain, and 22-year-old Nima Fazeli of Orlando, Fla., for allegedly helping with the attack.

Antitrust

  • Lawmakers on the House antitrust subcommittee unveiled a sweep of new documents that have aided in their investigation of anti-competitive behavior in the tech industry during a nearly six-hour hearing Wednesday with the chief executives of Alphabet Inc., Amazon.com Inc., Apple Inc. and Facebook Inc. — including emails depicting Facebook’s acquisition of Instagram as an attempt to neutralize competitors and claims that Google threatened to delist Yelp Inc. after the site complained that Google had copied its reviews. Following the hearing, Rep. David Cicilline (D-R.I.), the chairman of the subcommittee, said the testimony from the executives “confirmed the evidence that we’ve collected over the last year” and that he expects a report concluding the investigation in late August or early September.
  • Despite the economic turmoil caused by the pandemic in the second quarter, Amazon, Apple, Alphabet and Facebook each posted strong quarterly earnings reports: Amazon reported that its sales grew 40 percent and its profit doubled year over year, while Facebook’s profit grew 98 percent to $5.2 billion. Apple reported $11.25 billion in profit, up 12 percent year over year, and increased sales for all of its products worldwide, and Alphabet beat Wall Street expectations despite posting an overall revenue drop for the first time in company history.
  • European regulators are gearing up to launch a full-scale investigation this week into Google’s proposed $2.1 billion purchase of Fitbit Inc., according to people familiar with the matter, indicating that Google’s offer to not use health data collected by Fitbit for ad targeting was not enough to fend off regulatory scrutiny.
  • After Airbnb Inc. and ClassPass Inc. turned to virtual classes to bring in revenue during the pandemic, Apple told the two companies it was entitled to 30 percent of the sales since the classes were sold through iPhone apps, according to people familiar with the matter. Both companies have since brought their concerns about Apple’s demands to House lawmakers, three people said, as the chamber’s antitrust panel continues to investigate allegations of anti-competitive behavior among large tech companies.

TikTok

  • Treasury Secretary Steven Mnuchin confirmed that the Committee on Foreign Investment in the U.S. is reviewing whether TikTok and its acquisition of Musical.ly pose any national security threats to the United States and planned to hand its recommendations to Trump last week.
  • A group of Republican senators, including Sens. Marco Rubio of Florida and Tom Cotton of Arkansas, sent a letter asking the Trump administration to assess the potential threat TikTok poses as a tool for the Chinese Communist Party to meddle in the U.S. elections.
  • Sens. Josh Hawley (R-Mo.) and Richard Blumenthal (D-Conn.) sent a letter to the Justice Department demanding an investigation into the national security threats posed by TikTok and Zoom Video Communications Inc., saying they were “extremely concerned” that the two companies could have disclosed private information about Americans to the Chinese Communist Party or censored content on behalf of the party.

Section 230 and content moderation

  • The Commerce Department filed a petition with the Federal Communications Commission, asking the independent agency to create rules refining how Section 230 of the Communications Decency Act is enforced and interpreted — following through on an executive order that Trump signed at the end of May cracking down on anti-conservative bias on social media sites.
  • During a Senate hearing about Section 230 of the Communications Decency Act, representatives of several trade groups signaled they’d be open to certain amendments to the statute and provisions in the PACT Act, a bill introduced last month by Sens. John Thune (R-S.D.) and Brian Schatz (D-Hawaii) — marking a rare concession from the industry in the growing bipartisan debate regarding Section 230 amendments.
  • Facebook said that the removal of a viral video from Breitbart News promoting coronavirus conspiracy theories and treatments “took longer than expected” and the company plans to do a “review to understand why this took longer than it should have.” The video, which included false information about mask-wearing and unverified virus cures, was shared by Trump and his son, Donald Trump Jr., on Twitter before social media platforms removed it and took action to control its spread.

Wireless and telecommunications

  • The FCC approved Amazon’s $10 billion “Project Kuiper” plan, in which the company will build a network of 3,236 low-Earth orbit satellites to provide high-speed broadband service to those who lack access and help wireless carriers deploy 5G service to new regions.

What’s Ahead

  • The Senate is in session. The House is operating remotely. 

Events Calendar (All Times Local)

08/03/2020
FCC Diversity Committee’s workshop examining the role of libraries on broadband adoption and literacy 10:00 am
08/04/2020
Pivot Schooled Live with Kara Swisher and Scott Galloway: Media’s Overnight Chaos — livestream
Open RAN Policy Coalition’s first webinar in a series on open radio access network, including Reps. Greg Walden (R-Ore.) and Doris Matsui (D-Calif.) 11:00 am
Official Launch of the Institute for Security and Technology – virtual 1:30 pm
Senate Armed Services Committee hearing on the findings of the CyberSpace Solarium Commission 2:30 pm
Brookings Institution virtual event on breaking up Big Tech 4:00 pm
Micromobility Industries’ webinar on “What Low-Bandwidth, Low-Cost Connectivity Means for Micromobility” 4:00 pm
08/05/2020
Black Hat USA 2020 – virtual
Aspen Tech Policy Hub Fellows’ virtual showcase feat. projects about improving democracy through technology 9:00 am
Senate Commerce Committee’s FTC oversight hearing 10:00 am
Senate Energy Committee’s hearing on improving cybersecurity in the energy sector 10:00 am
U.S. Copyright Office’s virtual event celebrating its 150th anniversary 12:00 pm
Forbes CIO Summit virtual series, episode 2 2:00 pm
New America’s virtual event: “A Conversation on Racial Equity and Technology” 5:00 pm
08/06/2020
Black Hat USA 2020 – virtual
FCC August Open Commission Meeting 10:30 am
View full calendar

Webinar – Most Loved Brands: What Drives Brand Love In A Year Like No Other

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The webinar will explore which brands topped the list, what factors tend to drive brand love and how brands can excel in the COVID-19 era.

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