| | | | | | | Presented By Auth0 | | | | Axios Login | | By Scott Rosenberg ·Jul 21, 2021 | | It's Wednesday for most of us, but Thursday for Ina in Japan. Don't you love the International Date Line? Olympic action got underway overnight, and Ina attended the first event in Tokyo, as the U.S. Women's Soccer team fell to Sweden in a stunning 3-0 blowout. Today's edition is 1,346 words, a 5-minute read. | | | | | | 1 big thing: Biden chooses a tough top antitrust cop |  | | | Illustration: Annelise Capossela/Axios | | | | President Biden's nomination of veteran antitrust attorney Jonathan Kanter to lead the Justice Department's antitrust division — the government's most powerful competition watchdog — shows just how serious the White House is about getting tough on tech. Why it matters: Kanter, known for his strong views that the feds should do more to rein in the power of large corporations, has been a favorite of progressives who share those beliefs, Axios' Kim Hart and Margaret Harding McGill report. - His appointment as assistant attorney general for antitrust will be the third leg of the administration's antitrust stool, along with FTC chief Lina Khan and White House adviser Tim Wu, who also want the government to lean in on competition issues.
The big picture: Kanter's nomination comes on the heels of Biden's sweeping executive order calling for federal agencies to take action to preserve and invigorate competition in the industries they oversee — from pharmaceuticals to technology. - In response to the order, Khan and Richard Power, who has been acting assistant attorney general, released a joint statement saying that they'd review merger guidelines to ensure they are not overly "permissive."
- Kanter will surely share that view and strive to work closely with Khan.
What he's said: In 2018 Senate testimony, Kanter made the case for antitrust enforcement being a preferred method for keeping monopoly-like behavior in check. - U.S. policymakers, he said, should "vigorously explore new questions in antitrust to ensure that U.S. antitrust law remains relevant to the realities of today's economy and society."
- "Antitrust enforcement, as opposed to regulation, is also a far more precise and effective tool to protect the free market .... Moreover antitrust enforcement allows prosecutors to exercise discretion and consider specific facts and circumstances at issue before bringing a case."
Between the lines: His references to precision and discretion will likely appeal to Republicans who are incensed with tech platforms for what they see as censorship but don't historically support broad measures against big business. - Despite his skepticism of Big Tech generally, his focus on using a scalpel rather than a sledgehammer could help him win Senate confirmation.
What they're saying: Sen. Amy Klobuchar (D-Minn), who leads the Senate Judiciary antitrust subcommittee, applauded the nomination, as did Sen. Elizabeth Warren (D-Mass.). - "For years, Jonathan Kanter has been a leader in the effort to increase antitrust enforcement against monopolies by federal, state, and international competition authorities," Klobuchar said in a statement.
Yes, but: Defenders of tech will likely accuse him of bias, given his past work on complaints brought by foes of Google and other companies. - His previous work has raised questions among observers about whether he will need to recuse himself from the DOJ's ongoing antitrust case against Google, but supporters point out that he didn't represent a party in the case.
- Amazon and Facebook have asked Khan, the FTC chair, to recuse herself from antitrust matters involving the companies, given her previous statements and work advocating for more aggressive enforcement against the companies.
|     | | | | | | 2. "Right to repair" has its moment in Washington |  | | | Illustration: Megan Robinson/Axios | | | | The effort to make it easier for consumers to get smartphones and other products fixed is gaining ground across the country, Margaret reports. Why it matters: Repairing pricey devices — rather than replacing them — can help consumers save money and extend the lifecycle of their products. Driving the news: The Federal Trade Commission will vote Wednesday on whether to change its approach to repair restrictions. - The White House urged the agency to consider crafting rules to limit anticompetitive restrictions on third-party or self-repair of products as part of the Biden administration's wide-ranging executive order on competition issues earlier this month.
- The FTC in May released a report called "Nixing the Fix" on repair restrictions that found "scant evidence to support manufacturers' justifications for repair restrictions."
Details: According to the report, restrictions on repairing equipment include: - Product designs that prevent or complicate repair, or make independent repairs less safe.
- Policies that direct consumers to manufacturer-authorized repair shops.
- Software locks or firmware that prevent repairs without the key.
What they're saying: Kevin O'Reilly, right to repair campaign director for U.S. Public Interest Research Groups, said software locks are the biggest obstacle to consumers or independent repair shops fixing devices like smartphones or gaming consoles. - "Since only manufacturers have access to those keys, they can charge whatever they want," driving prices so high that customers just buy a new device, O'Reilly told Axios. "That's bad for consumers, but that's also really disastrous for the environment."
The big picture: The right-to-repair movement arose alongside resistance to aspects of the Digital Millennium Copyright Act that critics say favor intellectual-property holders over consumers. Today, the movement's arguments are being applied to everything from farm machines to surgical robots. The other side: Manufacturers have said the restrictions are meant to protect customers' safety and their own intellectual property rights. - "Allowing unauthorized third parties with access to sensitive diagnostic information, software, tools, and parts would jeopardize the safety and security of consumers' computers, tablets, and other devices and put them at risk for fraud and data theft," Carl Holshouser, senior vice president of industry group TechNet, said in a statement.
Meanwhile, Apple in 2019 announced a new repair program that gives independent shops the same access to equipment and tools that Apple gives its authorized network of providers. Yes, but: O'Reilly said the Apple program has made a "minimal difference" because the requirements to join the company's independent repair program are onerous and off-putting for small businesses. - Apple co-founder Steve Wozniak recently spoke out in favor of the right-to-repair movement.
What to watch: 27 states this year introduced right to repair bills that would limit restrictions, and Rep. Joe Morelle (D-N.Y.) introduced federal legislation in June. | | | | | | | | 3. Survey: U.S. support for tech regulation grows | | A new survey finds that 68% of Americans believe Big Tech companies have too much power in the economy, and 56% think these firms should be regulated more than they are now, Kim reports. Why it matters: The Pew Research Center survey, conducted April 12–18, 2021, shows a statistically significant increase for those who support more regulation — a big uptick from 47% in June 2020. - The only political group that did not show a significant increase in those calling for more regulation is moderate or liberal Republicans, Pew found.
- Conservative Republicans (80%) are the political group most likely to say Big Tech companies have too much economic influence, followed by liberal Democrats (74%).
The intrigue: Americans are split on whether the government should cap these companies' growth so that they can't undermine competition. - Even if major tech companies follow the rules, 55% say the government should not let them grow beyond a certain size. Liberal Democrats are most likely to support this.
- 42% think that, as long as companies follow the rules, they should be allowed to grow unchecked by government intervention.
Of note: Americans who are more familiar with the debate over tech regulation are more likely to favor tougher rules. Go deeper: Read Pew's analysis | | | | | | | | A message from Auth0 | | Beat the bots: How to secure the state of your identity | | |  | | | | Credential stuffing attacks, fraudulent registrations and breached credentials are the most pervasive threats to digital security and identity. Gain insights and learn mitigation strategies with Auth0̸'s report, The State of Secure Identity. | | | | | | 4. Netflix's move on gaming | | Netflix on Tuesday officially opened up about its new gaming efforts, telling shareholders it will soon include games in members' Netflix subscription plans at no additional cost. - The tech giant confirmed reporting from Axios Gaming reporter Stephen Totilo that the company is looking to first focus on mobile games.
- "We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV," read the Q2 shareholders letter.
By the numbers: Netflix said it added just 1.54 million subscribers this quarter, its lowest number of subscriber additions in years. The company also missed Wall Street expectations on earnings per share. | | | | | | | | 5. Take note | | On Tap - The Federal Trade Commission meets to consider moves around its rules covering when companies must notify it about mergers, as well as the right to repair issue.
- Game Developers Conference continues online.
ICYMI | | | | | | | | 6. After you Login |  | | | Photo: Ina Fried/Axios | | | | Here's what it looks like to watch an Olympic soccer match in a stadium with no fans. | | | | | | | | A message from Auth0 | | Beat the bots: How to secure the state of your identity | | | | | | | | Credential stuffing attacks, fraudulent registrations and breached credentials are the most pervasive threats to digital security and identity. Gain insights and learn mitigation strategies with Auth0̸'s report, The State of Secure Identity. | | |  | | It'll help you deliver employee communications more effectively. | | | | | | Axios thanks our partners for supporting our newsletters. If you're interested in advertising, learn more here.
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