DoJ Anti-Trust Case Advancing v. Social Tech Companies

The Department of Justice is preparing to open a broad probe into whether Amazon, Facebook, and other big tech companies are illegally harming their competitors, the department said in a press release on

The investigation is the latest antitrust probe looking into “Big Tech” and is separate from the potential investigations into Amazon, Apple, Facebook, and Alphabet that are reportedly being brought up against them by the DOJ and FTC.

Watch the FAANG stocks.

What are FAANG Stocks?

Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOG) are the five technology giants trading publicly in the market. Investors grouped these companies into one acronym to capture the collective impact that these companies have on the markets.

The Big FAANG Theory: 5 Reasons To Stop Dancing With Your Favorite Big 5 | Seeking Alpha

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In the case of Big Tech and Anti-Trust, the issue is to protect competition and ensure benefits to the consumer. There are at least 3 Anti-Trust laws under consideration for the Department of Justice to pursue a case or cases against big tech.

  • The Sherman Antitrust Act
  • The Clayton Act
  • The Federal Trade Commission Act

The Sherman Antitrust Act since 1890 stands to protect a free market economy and outlaws contracts, combinations or price fixing. In short, it is a crime to monopolize.

The Clayton Act is a civil statue that prohibits mergers or acquisition that harm competition.

The Federal Trade Commission Act prohibits unfair interstate methods of commerce that include false testimony to Federal agencies, mail or wire fraud and obstruction of justice.

These Acts in composition prevent corporate cartel action in a free market system. Previous cases have included telecom companies like AT&T, Proctor and Gamble and Roche Holding, a Swiss pharmaceutical company.

The DoJ has been reviewing all things big tech for a while so just a simple review has already happened. Digital platforms are not responsive to consumer demands when it comes to privacy, access to small business and entrepreneurs and retail operations.

Congress has proposed regulation and even Facebook’s Mark Zuckerberg admitted he was open to oversight or regulation in congressional testimony. So far, big tech has not addressed the concerns of users including possible corruption, censor algorithms or slanted search results.

Users have lost trust but have little choices for other platforms that offer better free enterprise usage. Is this now a discussion and investigation on consumer welfare and protection? Yes. This comes down to an congested intersection of corporations, terms of use, subjective results, narrow competition ranges and innovation all under the guise of power and money.

There is market domination and the little guy is sideline or bought out causing harm to innovation and user expectations.

Wray’s Senate Testimony on China

Two significant items that prove Chinese espionage activities in the United States: a) Chinese Talent Plan b) Corporate Party Cells

This website has published several articles regarding the Chinese propaganda operation in the U.S. public school system and up to and including the university level.

As part of the Chinese mission to steal intellectual property beyond the insertion of censorship, culture and propaganda, China has at least two other successful objectives, the talent plan and the party cells.

China’s New Talent Policy: Objectives and Opportunities ...

A 5 page summary document on the talent plan is found here.

(U) Chinese Talent Programs are a vital part of Chinese industry. Talent programs recruit experts to fill technical jobs that drive innovation and growth in China’s economy. National, provincial, and municipal talent recruitment programs provide opportunities for experts to work in industry and academic organizations supporting key areas deemed critical to China’s development. The talent programs recruit experts globally from businesses, industry, and universities with multiple incentives to work in China. Associating with these talent programs is legal and breaks no laws; however, individuals who agree to the Chinese terms must understand what is and is not legal under US law when sharing information. A simple download of intellectual property (IP) or proprietary information has the potential to become criminal activity.

(U//FOUO) The large number of foreign students, researchers, scientists, and professionals in the United States, combined with current technological capabilities, allows foreign governments to contact and recruit individuals with the hopes to acquire advanced technology without research costs. While the majority of the population are law abiding individuals, anyone has the capability to acquire information. The theft of information can come from current or former employees, business partners, consultants, contractors, temporary hires, foreign agents, suppliers, or even vendors who have access to proprietary information. Read on here.

Per the applied website:

China initiated “the Recruitment Program of Global Experts” (known as “the Thousand Talents Plan”) since the end of 2008, under which it would bring in overseas top talents to China over the next five to ten years. Relying upon National Key Innovation Projects, National Key Disciplines and National Key Laboratories, central SOEs and state-owned commercial and financial institutions, and various industrial parks( mainly the high-tech development zones), this plan called for strategic scientists or leading talents who can make breakthroughs in key technologies or can enhance China’s high-tech industries and emerging disciplines.

By the end of May 2014,more than 4180 overseas high-level talents have been introduced in “1000 Talent Plan” by 10 times. When they go (back) to China, they are playing a positive role in the scientific innovation, technological breakthrough, discipline construction, talent training and hi-tech industry development, as an important force in the construction of the innovative country.

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May Day Story: Chinese Government’s Communist ‘Party Cells ...

As for the Party cells, China, Inc. meaning all Chinese corporations/businesses are to have a department or cell within the company that is a mobilized team ensuring all business activities and employees adhere to the Communist Party mandates.

In November, at the most important Communist Party meeting, which takes place every five years, Mr. Xi called on officials to strengthen the party in “government, the military, society and schools, north, south, east and west.” The message was quick to reach party members lower down in the ranks.

Soon after Mr. Xi’s speech, party officials in the central province of Hunan issued a notice to members instructing them to write the party into legal documents for private and state-owned companies alike. The document was accidentally made public when a local state-owned newspaper published it, but it was quickly taken down.

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In July, executives from more than a dozen top European companies in China met in Beijing to discuss their concerns about the growing role of the party in their local operations, Reuters reported.

One senior executive whose company was represented at the meeting told Reuters some firms were under “political pressure” to revise terms of their joint ventures with state-owned partners to allow the party the final say over business operations and investment decisions.

The business component with the party cells is quite important to consider when there is Chinese investment in the United States. When it comes to foreign applications, the U.S. Treasury may need to alter the approval process for all things China inside the United States given the history of theft. As for schools and business, it may be a consideration for the Chinese government to put up an export bond. Consider this is all going on as China defense industry is now the top arms maker ahead of all Western military contractors and manufacturers.

Seizing el Chapo’s Money Likely Impossible

Senator Ted Cruz and Sasse have co-sponsored legislation to seize the bank accounts of el Chapo Guzman to pay for the wall. While this is great in theory, some of that money should go to the victims as well.

el Chapo has been sentenced to live in prison plus 30 years and he is to forfeit his vast sums of money estimated to be as high as $12 billion. C’mon, this is likely not going to happen in total but there is a possibility to find perhaps some of it. Why?

Spain Is a Paradise (for the World's Most Powerful Drug ...

Guzman’s trial highlighted the methods Guzman Loera and his organization used to transport the cartel’s multi-ton shipments of narcotics into the United States, including fishing boats, submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels. Once the narcotics were in the United States, they were sold to wholesale distributors in New York, Miami, Atlanta, Chicago, Arizona, Los Angeles and elsewhere. Guzman Loera then used various methods to launder billions of dollars of drug proceeds, including bulk cash smuggling from the United States to Mexico, U.S.-based insurance companies, reloadable debit cards and numerous shell companies, including a juice company and a fish flour company.

Guzman built a global empire and that included hiring expert lawyers, accountants and investors. The Federal Court of New York in 2008 proved that HSBC, JP Morgan, Wells Fargo and Bank of America were directly related to money laundering. The same court found that HSBC had laundered at least $1.1 billion from Sinaloa.

Drug cartel leaders may be uneducated in the traditional sense, but as the agents pursuing them know all too well, they are wily strategists and extremely sophisticated business people. Because their business depends on identifying and exploiting loopholes in the world’s legal and financial systems, they hire the brightest talent they can find to help them achieve their goals, and pay them extraordinarily well. Of the many money-laundering methods utilized by drug cartels, “structuring” – depositing amounts smaller than $10,000 to avoid Bank Secrecy Act (BSA) reporting regulations – is the most popular, even though it’s also the easiest form of money laundering to detect. Structuring is the most common reason Suspicious Activity Reports (SARs) are filed by banks, but it’s also the most direct way to get money into a U.S. bank account. To push the odds in their favor, drug traffickers hire a veritable army of people to deposit small amounts of cash in banks all over the country, in cities large and small. Many get caught, but to the cartels, that’s simply the cost of doing business.

One area where law enforcement and finance can help each other in the future is in identifying and recognizing evolving trends. For example, Europe is a popular place for Mexican and Colombian drug traffickers to conduct business now because there is a lack of coordination and communication between countries in the European Union that criminals are exploiting.

Recently, federal officials received word that teenagers in a small country in Central Africa called Equatorial Guinea were suddenly driving Maseratis and other expensive cars down the country’s dirt roads. Further investigation revealed that both the Sinaloa drug cartel and Colombia’s Medellin cartel are now using this small country as a trafficking gateway to Europe.

Why? Because the predominant language in Equatorial Guinea isn’t French or Portuguese – it’s Spanish. More here.

Why are the Sinaloa Cartel the World's Most Powerful ...

Once illicit money gets into the U.S. financial system, it can go anywhere, internationally and such is the issue with the Iran nuclear deal where John Kerry allowed Iran access to the American banking system. What about the Patriot Act you ask? In some cases it was finessed due to payoffs. And how about corrupt governments? Yup that too.

 

Google Manipulated Votes in 2016 for Hillary, Senate Hearing

Now, who is Dr. Robert Epstein? He is a distinguished research psychologist and the former editor in chief of Psychology Today. He has authored 15 books and published 250 articles. He is a committed Democrat and voted for Hillary Clinton in 2016.

So, you MUST watch this video clip from C-Span today before the Senate. More terrifying than even Russia interfering in the American election infrastructure.

Hat tip to Senator Ted Cruz.

Can you guess who was the top campaign contributor? Yes, Alphabet, the parent company of Google.

Update: The testimony of Dr. Epstein regarding Google’s collaboration with Hillary is also substantiated by a research paper found here and published in 2016.

WikiLeaks: Google's Eric Schmidt Planning Hillary's ...

Now, he published this piece about Google and it too is a must read.

Recognition is growing worldwide that something big needs to be done about Big Tech, and fast.

More than $8 billion in fines have been levied against Google by the European Union since 2017. Facebook Inc., facing an onslaught of investigations, has dropped in reputation to almost rock bottom among the 100 most visible companies in the U.S. Former employees of Google and Facebook have warned that these companies are “ripping apart the social fabric” and can “hijack the mind.”

Adding substance to the concerns, documents and videos have been leaking from Big Tech companies, supporting fears—most often expressed by conservatives—about political manipulations and even aspirations to engineer human values.

Fixes on the table include forcing the tech titans to divest themselves of some of the companies they’ve bought (more than 250 by Google and Facebook alone) and guaranteeing that user data are transportable.

But these and a dozen other proposals never get to the heart of the problem, and that is that Google’s search engine and Facebook’s social network platform have value only if they are intact. Breaking up Google’s search engine would give us a smattering of search engines that yield inferior results (the larger the search engine, the wider the range of results it can give you), and breaking up Facebook’s platform would be like building an immensely long Berlin Wall that would splinter millions of relationships.

With those basic platforms intact, the three biggest threats that Google and Facebook pose to societies worldwide are barely affected by almost any intervention: the aggressive surveillance, the suppression of content, and the subtle manipulation of the thinking and behavior of more than 2.5 billion people.

Different tech companies pose different kinds of threats. I’m focused here on Google, which I’ve been studying for more than six years through both experimental research and monitoring projects. (Google is well aware of my work and not entirely happy with me. The company did not respond to requests for comment.) Google is especially worrisome because it has maintained an unopposed monopoly on search worldwide for nearly a decade. It controls 92 percent of search, with the next largest competitor, Microsoft’s Bing, drawing only 2.5%.

Fortunately, there is a simple way to end the company’s monopoly without breaking up its search engine, and that is to turn its “index”—the mammoth and ever-growing database it maintains of internet content—into a kind of public commons.

There is precedent for this both in law and in Google’s business practices. When private ownership of essential resources and services—water, electricity, telecommunications, and so on—no longer serves the public interest, governments often step in to control them. One particular government intervention is especially relevant to the Big Tech dilemma: the 1956 consent decree in the U.S. in which AT&T agreed to share all its patents with other companies free of charge. As tech investor Roger McNamee and others have pointed out, that sharing reverberated around the world, leading to a significant increase in technological competition and innovation.

Doesn’t Google already share its index with everyone in the world? Yes, but only for single searches. I’m talking about requiring Google to share its entire index with outside entities—businesses, nonprofit organizations, even individuals—through what programmers call an application programming interface, or API.

Google already allows this kind of sharing with a chosen few, most notably a small but ingenious company called Startpage, which is based in the Netherlands. In 2009, Google granted Startpage access to its index in return for fees generated by ads placed near Startpage search results.

With access to Google’s index—the most extensive in the world, by far—Startpage gives you great search results, but with a difference. Google tracks your searches and also monitors you in other ways, so it gives you personalized results. Startpage doesn’t track you—it respects and guarantees your privacy—so it gives you generic results. Some people like customized results; others treasure their privacy. (You might have heard of another privacy-oriented alternative to Google.com called DuckDuckGo, which aggregates information obtained from 400 other non-Google sources, including its own modest crawler.)

If entities worldwide were given unlimited access to Google’s index, dozens of Startpage variants would turn up within months; within a year or two, thousands of new search platforms might emerge, each with different strengths and weaknesses. Many would target niche audiences—some small, perhaps, like high-end shoppers, and some huge, like all the world’s women, and most of these platforms would do a better job of serving their constituencies than Google ever could.

These aren’t just alternatives to Google, they are competitors—thousands of search platforms, each with its special focus and emphasis, each drawing on different subsets of information from Google’s ever-expanding index, and each using different rules to decide how to organize the search results they display. Different platforms would likely have different business models, too, and business models that have never been tried before would quickly be tested.

This system replicates the competitive ecology we now have of both traditional and online media sources—newspapers, magazines, television channels, and so on—each drawing on roughly the same body of knowledge, serving niche audiences, and prioritizing information as it sees fit.

But what about those nasty filter bubbles that trap people in narrow worlds of information? Making Google’s index public doesn’t solve that problem, but it shrinks it to nonthreatening proportions. At the moment, it’s entirely up to Google to determine which bubble you’re in, which search suggestions you receive, and which search results appear at the top of the list; that’s the stuff of worldwide mind control. But with thousands of search platforms vying for your attention, the power is back in your hands. You pick your platform or platforms and shift to others when they draw your attention, as they will all be trying to do continuously.

If that happens, what becomes of Google? At first, not much. It should be allowed, I believe, to retain ownership and control of its index. That will assure it continues to do a great job maintaining and updating it. And even with competition looming, change will take time. Serious competitors will need months to gather resources and generate traffic. Eventually, though, Google will likely become a smaller, leaner, more diversified company, especially if some of the other proposals out there for taming Big Tech are eventually implemented. If, over time, Google wants to continue to spy on people through its search engine, it will have to work like hell to keep them. It will no longer be able to rest on its laurels, as it has for most of the past 20 years; it’s going to have to hustle, and we will all benefit from its energy.

My kids think Google was the world’s first search engine, but it was actually the 21st. I can remember when search was highly competitive—when Yahoo! was the big kid on the block and engines such as Ask Jeeves and Lycos were hot commodities. Founded in 1998 amid a crowded field of competitors, Google didn’t begin to dominate search until 2003, by which time it still handled only about a third of searches in the U.S. Search can be competitive again—this time with a massive, authoritative, rapidly expanding index available to all parties.

The alternative is frightening. If Google retains its monopoly on search, or even if a government steps in and makes Google a public utility, the obscene power to decide what information humanity can see and how that information should be ordered will remain in the hands of a single authority. Democracy will be an illusion, human autonomy will be compromised, and competition in search—with all the innovation that implies—might never emerge. With internet penetration increasing rapidly worldwide, do we really want a single player, no matter how benign it appears to be, to control the gateway to all information?

For the system I propose to work fairly and efficiently, we’ll need rules. Here are some obvious ones to think about:

Access. There might have to be limits on who can access the API. We might not want every high school hacker to be able to build his or her own search platform. On the other hand, imagine thousands of Mark Zuckerbergs battling each other to find better ways of organizing the world’s information.

Speed. Google must not be allowed to throttle access to its index, especially in ways that give it a performance advantage or that favor one search platform over another.

Content. To prevent Google from engineering humanity by being selective about what content it adds to its index, all parties with API access must be able to add content.

Visibility. For people using Google to seek information about other search platforms, Google must be forbidden from driving people to itself or its affiliated platforms.

Removal. Google must be prohibited from removing content from its index. The only exception will be when a web page no longer exists. An accurate, up-to-date record of such deletions must be accessible through the API.

Logging. Google must log all visits to its index, and that log must be accessible through the API.

Fees. Low-volume external platforms (think: high school hackers) should be able to access the index free of charge. High-volume users (think: Microsoft Corp.’s Bing) should pay Google nominal fees set by regulators. That gives Google another incentive for maintaining a superior index.

Can we really justify bludgeoning one of the world’s biggest and most successful companies? When governments have regulated, dismembered, or, in some cases, taken ownership of private water or electricity companies, they have done so to serve the public interest, even when the company in question has developed new technologies or resources at great expense. The rationale is straightforward: You may have built the pipelines, but water is a “common” resource that belongs to everyone, as David Bollier reminded us in his seminal book, Silent Theft: The Private Plunder of Our Common Wealth.

In Google’s case, it would be absurd for the company to claim ownership rights over the contents of its index for the simple reason that it copied virtually all those contents. Google scraped the content by roaming the internet, examining webpages, and copying both the address of a page and language used on that page. None of those websites or any external authority ever gave Google permission to do this copying.

Did any external authority give Google permission to demote a website in its search results or to remove a website from its index? No, which is why both individuals and even top business leaders are sometimes traumatized when Google demotes or delists a website.

But when Google’s index becomes public, people won’t care as much about its machinations. If conservatives think Google is messing with them, they’ll soon switch to other search platforms, where they’ll still get potentially excellent results. Given the possibility of a mass migration, Google will likely stop playing God, treating users and constituencies with new respect and humility.

Who will implement this plan? In the U.S., Congress, the Federal Trade Commission, and the Department of Justice all have the power to make this happen. Because Google is a global company with, at this writing, 16 data centers—eight in the U.S., one in Chile, five in the EU, one in Taiwan, and one in Singapore—countries outside the U.S. could also declare its index to be a public commons. The EU is a prime candidate for taking such action.

But there is another possibility—namely, that Google itself will step up. This isn’t as crazy as you might think. Likely prompted by the EU antitrust investigations, the company has quietly gone through two corporate reorganizations since 2015, and experts I’ve talked to in both the U.S. and the U.K. say the main effect of these reorganizations has been to distance Google’s major shareholders from any calamities that might befall the Google search engine. The company’s lawyers have also undoubtedly been taking a close look at the turbulent years during which Microsoft unsuccessfully fought U.S. antitrust investigators.

Google’s leaders have been preparing for an uncertain future in which the search engine might be made a public utility, fined into bankruptcy, frozen by court orders, or even seized by governments. It might be able to avoid ugly scenarios simply by posting the specs for its new public API and inviting people and companies around the world to compete with its search platform. Google could do this tomorrow—and generate glowing headlines worldwide. Google’s data analysts know how to run numbers better than anyone. If the models predict that the company will make more money, minimize risk, and optimize its brand in coming years by making its index public, Google will make this happen long before the roof caves in.

The Other Items Complicating a China Trade Deal

Beyond the traditional trade talks between the U.S. Trade Representative and envoy with Beijing, there are complicating factors that enter into the debates and it is generally dealing with military aggression and espionage. So consider the following items:

  1. New Delhi: China has recently leased vast tracts of land along the coast of the Koh Kong province of Cambodia to turn into a seaside resort. An area of 45,000 hectares — 20 per cent of the coastline — has been leased for 40 years for a paltry annual rent of US $1 million.

    A Chinese private company called Union Development Group (UDG) is undertaking the project, named the Dara Sakor Seashore Resort Long Term Project.

    However, there has also been increased military cooperation between Beijing and Phnom Penh, and the US has raised concerns, with Vice-President Mike Pence writing to Cambodian PM Hun Sen that these facilities could be put to military use.

    Paul Chambers, professor of international affairs at the Naresuan University in Thailand, has claimed that senior Cambodian officials privately admitted that Hun Sen was considering approving a Chinese naval base at Kiri Sakor. The Chinese resort in Cambodia that can overnight be ...

    Hun Sen has claimed there are no foreign troops on Cambodian soil, but China has been accused of using debt traps to get its way. And according to satellite imagery accessed by ThePrint, there is a real possibility of the resort project currently under construction turning into a Chinese military base.

  2.   BRUSSELS (Reuters) – China’s ZTE opened a cybersecurity lab in Brussels on Wednesday, aiming to boost transparency four months after bigger telecoms equipment rival Huawei [HWT.UL] did the same to allay concerns about spying.Chinese vendors of network gear are being scrutinized by the United States and some of its allies who believe the equipment could be used by Beijing to spy on customers if deployed in 5G networks, which are beginning to be built around the world.

    Huawei, the world’s biggest maker of telecoms network gear, has been blacklisted by the U.S. government, meaning that U.S. companies need special approval – which they are unlikely to get – to export products to the Chinese company.

  3. The Chinese military has deployed military personnel and armored medical vehicles to Germany for joint drills, a first for the Chinese People’s Liberation Army as it attempts to forge closer ties with Europe.

    The joint exercise — Combined Aid 2019 — is focused on preparing troops with the medical service units of the Chinese and German armed forces to respond to humanitarian crises, such as mass casualty incidents and serious disease outbreaks, China’s Xinhua News Agency reported.

    The exercise follows a cooperative military medical training exercise in 2016 in Chongqing, where the PLA and the German Bundeswehr practiced responding to an imaginary earthquake scenario.

  4. Over one million Uyghurs and Muslims from other ethnic minority groups have been detained by the Chinese government and sent to “re-education” internment camps. Sources indicate that detainees are psychologically and physically abused. Uyghurs outside the camps in Xinjiang are also not free, as they are kept under constant surveillance, often using advanced technology. The Chinese government is increasingly testing this technology in Xinjiang and exporting it nationally and globally, with concerning implications for democracy and human rights.
  5. (UPI) China is condemning a recent U.S. decision to sell $2.2 billion worth of weapons to Taiwan, saying the “reckless” policy tampers with Chinese sovereignty.

    Beijing’s foreign ministry spokesman Geng Shuang said Tuesday at a regular press briefing China opposes U.S. weapons sales to Taiwan, a country China recognizes as a breakaway province.

    “The United States has recklessly interfered in Chinese domestic affairs,” Geng said. “It has undermined China’s sovereignty and security interests.”

    The U.S. State Department on Monday approved two potential arms sales to Taiwan, worth $2.2 billion.

    The weapons to be sold to Taiwan include 108 Abrams tanks, 250 Stinger missiles and related equipment.

    On Tuesday Geng reminded reporters Beijing does not recognize Taiwanese sovereignty.

    “Taiwan is an inseparable part of Chinese territory,” the foreign ministry spokesman said. “Do not underestimate the Chinese government and the people’s will to defend national sovereignty and territory.”

    Geng added the United States was in “severe violation” of Beijing’s “One-China” policy.

    Tensions have grown between Taiwan and China since President Tsai Ing-wen assumed office in 2016.

    Tsai’s recent decision to stay in the United States for four nights during a “layover” has angered China. Beijing, under its law, bans the Taiwanese leader from making contact with U.S. politicians.