Thursday, December 10, 2020

The “wrath of Mark”

Facebook gets hit with two major antitrust lawsuits; Boris Johnson says a no-deal Brexit could be on the horizon.

 

Tonight's Sentences was written by Cameron Peters.

TOP NEWS
State and federal regulators take aim at Facebook
Rafael Henrique/SOPA Images/LightRocket via Getty Images
  • On Wednesday, 46 states and the Federal Trade Commission, plus Guam and the District of Columbia, filed a coordinated pair of major new antitrust lawsuits against Facebook. [NYT / Cecilia Kang and Mike Isaac]
  • The suits — one brought by state regulators and one by the FTC — accuse Facebook of engaging in illegal anti-competitive practices, such as acquiring potential rivals like Instagram and WhatsApp. [CBS News / Irina Ivanova]
  • According to New York Attorney General Letitia James, who is leading the state effort, "Facebook has used its dominance and monopoly power to crush smaller rivals and snuff out competition, all at the expense of everyday users." [Guardian / Gabrielle Canon]
  • Facebook has pushed back against the suits, describing them as "revisionist history." On Wednesday, Facebook general counsel Jennifer Newstead said that "antitrust laws exist to protect consumers and promote innovation, not to punish successful businesses." [Washington Post / Tony Romm]
  • If either of the lawsuits succeeds, Facebook could be forced to divest from Instagram, acquired in 2012, and WhatsApp, acquired in 2014. It could also be required to seek approval for future acquisitions. [TechCrunch / Devin Coldewey]
  • That's likely not coming anytime soon, though. According to tech journalist Casey Newton, the lawsuits are likely to be a "years-long affair" — and even then, the result might not be the breakup of Facebook. [The Verge / Casey Newton]
  • Wednesday's lawsuits follow a year of intense scrutiny for Facebook and the rest of Big Tech. In October, a report by the House Antitrust Committee similarly concluded that Facebook, along with Amazon, Apple, and Google, had engaged in anti-competitive practices. [Recode / Rebecca Heilweil]
  • Google was also the target of an antitrust lawsuit brought this fall by the Justice Department and 11 states over the company's continued search advertising dominance. [CNN / Brian Fung]
 
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Brexit looms as UK-EU trade talks "remain far apart"
  • After negotiations on Wednesday failed to produce a trade deal between the United Kingdom and the European Union, British Prime Minister Boris Johnson is said to be warning his cabinet to prepare for a no-deal Brexit. [Guardian / Heather Stewart]
  • Technically, the UK Brexited on January 31 — but the difficulty of extricating the UK from its decades-old membership in the bloc means that transition negotiations have been ongoing all year. [Washington Post / Adam Taylor]
  • Fishing rights and regulations ensuring "fair competition" are among the issues that have yet to be settled, according to the New York Times, though the sides made headway earlier this week on Northern Ireland and the Irish border. [NYT / Stephen Castle and Steven Erlanger]
  • There's still the possibility of a breakthrough: Though European Commission President Ursula von der Leyen said in a statement Wednesday that the UK and EU are "far apart" on a number of issues, negotiations are ongoing, with a new Sunday deadline for a resolution. [European Commission]
  • The December 31 deadline for a trade deal is bearing down quickly, however, and without a deal, the UK will likely face a difficult post-Brexit future. The Bank of England has warned that a no-deal outcome could inflict more long-term economic damage than the coronavirus pandemic. [Axios / Zachary Basu]
MISCELLANEOUS
The US set a new record for Covid-19 deaths on Wednesday. 3,054 people died in a single day, more than on 9/11.

[Covid Tracking Project]

  • The US is set to carry out another execution Thursday. Brandon Bernard, 40, was sentenced to death when he was just 18, and multiple jurors in his case now say they regret their decision. [The Intercept / Liliana Segura]
  • In exchange for US recognition of Morocco's claim to Western Sahara, Morocco on Thursday became the latest country to normalize relations with Israel. [Vox / Alex Ward]
  • The Supreme Court decided Thursday that three Muslim men placed on the no-fly list can sue FBI agents for damages. [NPR / Nina Totenberg]
  • Another unexpected effect of the pandemic: Campbell Soup, which produces Pepperidge Farm cookies, has warned it's facing "supply constraints" of the treats amid increased demand and a labor shortage. [Bloomberg / Carolina Gonzalez
 
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VERBATIM
"We're supposed to be the greatest, richest country in the world, and we don't have safety nets for when something like this happens? People are being forced to steal when they shouldn't have to, and that's a great American tragedy."

[Danielle Nierenberg, founder of the nonprofit organization Food Tank, on the uptick in shoplifting during the pandemic / Washington Post]

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