News: POLITICO California Playbook: GOOGLE critic KANTER to DOJ — ATHLETICS ballpark vote — BARRACK arrested

Wednesday, July 21, 2021

POLITICO California Playbook: GOOGLE critic KANTER to DOJ — ATHLETICS ballpark vote — BARRACK arrested — WEINSTEIN extradited to LA

Jul 21, 2021

Presented by USA-IT

THE BUZZ — COLD WAR ON TECH: Big Tech's path through Democratic D.C. is looking more treacherous by the day.

Progressives critical of Silicon Valley's concentrated power exulted yesterday after the Biden administration named Jonathan Kanter to lead antitrust enforcement at the Department of Justice. The pick signaled the White House was determined to rein in monopolistic practices and vindicated activists who had pushed Kanter as the person for the job. And as POLITICO's Leah Nylen and Emily Birnaum report, he completes a tech critic trifecta with White House adviser Tim Wu and Federal Trade Commission Chair Lina Khan. Wu was spotted with a "Wu & Khan & Kanter" coffee cup that has become a progressive signifier. Read Leah and Emily's breakdown here.

As Google braces for a potential crackdown, Facebook has been feuding with the Biden administration over Covid-19. This week the president somewhat walked back his assertion that the social media giant was "killing people" by allowing anti-vaccination content to proliferate, but he emphasized the platform's high responsibility to safeguard public health by preventing misinformation. We've heard echoes of Biden's lamentations this week as Gov. Gavin Newsom has bemoaned "misinformation campaigns" by "networks that profit off the misinformation," although the governor did not name a specific culprit. Conservatives have sounded constitutional alarms about the White House spotlighting questionable Facebook content.

The rising scrutiny of a California-centric industry has not met universal enthusiasm among California lawmakers. Members of Congress from the Golden State have lodged some of the most strenuous objections to an antitrust package, with Californians joining in bipartisan votes against the legislation and Rep. Zoe Lofgren upbraiding her progressive colleagues as she pointed out Silicon Valley firms have been a reliable source of campaign contributions. That has certainly been the case for Newsom as tech industry figures have stocked his recall warchest with some $4 million so far.

SPEAKING OF STATEWIDE TECH POLITICS: The Legislature's efforts to regulate a powerful homegrown industry have yielded mixed results. Online consumer privacy bills have struggled in Sacramento since lawmakers passed California's sweeping online privacy law, a landmark measure that, so far, has largely led to companies resolving violations out of court. That's not even getting into the struggle over labor standards in the app-based economy.

An augmented desire to get tougher on antitrust violations has yielded some bipartisan fruit, as in a nonbinding resolution seeking to analyze adapting antitrust law to the tech companies. But, while a bill forcing disclosure of algorithms that govern life-altering decisions is moving despite industry opposition, a measure compelling companies to explain how and why they censor online speech has stalled.

Facebook's lobbying spending has surged in recent years, from about $460,000 in 2017-18 to some $1.6 million in 2019-20, and the $100,000 it reported for January through March of this year is its highest total ever for the first quarter. It has also stepped up its campaign spending, spreading more than $3 million across the last two cycles.

BUENOS DÍAS, good Wednesday morning. Secretary of State Shirley Weber will certify the final list of Newsom recall candidates and their designations after close of business today — which means it's crunch time for Larry Elder as he challenges his exclusion from the ballot and Kevin Faulconer as he's pushing to get "retired San Diego mayor" as his designation.

Got a tip or story idea for California Playbook? Hit cmarinucci@politico.com or jwhite@politico.com or follow us on Twitter @cmarinucci and @jeremybwhite.

QUOTE OF THE DAY: "I don't know where we go from here after doing somersaults, after receiving insults, after being disrespected… It's not a negotiation. It's really, 'do what we say or we'll leave.'" Oakland Councilwoman Carol Fife on the Athletics' ballpark demands during a high-stakes hearing on the city's term sheet.

BONS QOTD: "I want to thank every Amazon employee and every Amazon customer, because you guys paid for this." Amazon founder Jeff Bezos on going near space.

TWEET OF THE DAY: Assemblywoman @BuffyWicks says it's time to get tough on vaccinations: "This is alarming: CA's new COVID surge would have put many counties back into the most restrictive tier under our reopening blueprint. It's time we do something uncomfortable: make vaccination mandatory—at schools, gyms, hospitals, workplaces, etc."

WHERE'S GAVIN? Nothing official announced.

A message from USA-IT:

With 840 miles of coastline and the nation's largest cargo gateway to Asia, California faces record amounts of illegal trade, which helps fund the criminal organizations transporting drugs, apparel, wildlife, weapons, counterfeit medicines, and even human beings into the state. Our partners are proud to be working on the ground in the Golden State, bringing our shared expertise into California's battle against illegal trade. Learn more.

TOP TALKERS

METOO — "Harvey Weinstein extradited, could appear in Los Angeles court this week on rape charges," by LATimes' James Queally: "Weinstein, whose extradition from New York was ordered by a judge last month, could appear in a downtown Los Angeles courtroom as early as Wednesday, according to his defense attorney Mark Werksman."

L.A. TRUMP ALLY ARRESTED — Trump adviser Tom Barrack arrested on foreign-agent charges, by POLITICO's Josh Gerstein: Tom Barrack, a longtime supporter of and adviser to former President Donald Trump, was arrested Tuesday on charges he secretly acted in the U.S. as an agent for the United Arab Emirates. Barrack, 74, is accused of failing to register as a foreign agent, conspiracy, obstruction of justice and four counts of making false statements to the FBI.

— LATimes' Matt Hamilton and Michael Finnegan: "Barrack's Los Angeles-based Colony Capital is a publicly held investment firm with $44 billion of assets under management that often bets on distressed assets."

OOPS — Pelosi aide tests positive for Covid-19 after contact with Texas Democrats, by POLITICO's Maeve Sheehey.

HYDRO HEISTS — " Thieves are stealing California's scarce water. Where's it going? Illegal marijuana farms," by CalMatters' Julie Cart: "Bandits in water trucks are backing up to rivers and lakes and pumping free water they sell on a burgeoning black market. Others, under cover of darkness, plug into city hydrants and top up. Thieves also steal water from homes, farms and private wells, and some even created an elaborate system of dams, reservoirs and pipelines during the last drought. Others are MacGyvering break-ins directly into pressurized water mains, a dangerous and destructive approach known as hot-tapping."

NERVOUS IN NEEDLES — "One of America's hottest cities is down to one water well. What happens if the taps go dry?" by the LATimes' Ralph Vartabedian.

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

CAMPAIGN MODE

SWALWELL SPENDING — "Swalwell spent thousands of campaign dollars on booze and limo services, $20K at hotel where his wife works," by Fox News' Houston Keene.

ANOTHER ONE? — " Another L.A. recall effort has sprung up. This one targets Councilman Kevin de León," by LATimes' David Zahniser: "Five voters who live in Northeast Los Angeles have signed paperwork seeking to recall City Councilman Kevin de León, making him the third council member to be targeted with such an effort in recent weeks."

— " Recall proponents go after Gavin Newsom's crime policies. What they had to say at rally," by SacBee's Lara Korte: "(Recall committee manager Anne) Dunsmore and advocates pointed to Newsom's decision to suspend the death penalty early on in his term, and efforts to change California's three-strike law, a 1994 bill passed in response to the murders of Kimber Reynolds and Polly Klaas."

CALIFORNIA AND THE CAPITOL CORRIDOR

— "Oakland City Council approves terms for A's Howard Terminal ballpark and development over team's objections," by SFChronicle's Sarah Ravani: " At stake is whether the team will stay in Oakland or become the third professional sports team to depart in recent years. The mega-development would also bring jobs, tax revenue, economic activity and thousands of desperately needed housing units to the city."

— "Newsom administration hires special counsel in probe of California unemployment fraud," by the LATimes' Patrick McGreevy: "(Former federal prosecutor McGregor) Scott was the U.S. attorney for the Eastern District of California until he stepped down this year and was a leader of a task force of California prosecutors that launched an investigation into unemployment fraud in November."

MASK ON … "Six more California counties ask people to wear masks indoors as Delta variant rages," by the LATimes' Luke Money: "The latest recommendations from Santa Barbara, Monterey, Napa, San Benito, Santa Cruz and Ventura raise to 17 the number of counties now asking even fully vaccinated individuals to wear face coverings as a precaution while inside places like grocery stores, movie theaters and retail outlets."

… HANDS OFF — "Will anyone enforce LA County's COVID mask mandate?" by LATimes' Luke Money: "Practically speaking, many health and law enforcement officials throughout the COVID-19 pandemic have favored educating residents about the rules and urging adherence rather than writing a flurry of tickets."

— "California court upends part of law to protect gay seniors," by AP's Don Thompson: " The Third District Court of Appeal overturned the part of the law barring employees of long-term care facilities from willfully and repeatedly using anything other than residents' preferred names and pronouns. That ban violates employees' rights to free speech, the court ruled Friday."

HASEN'S NEW GIG — New academic center aims to 'strengthen' democracy in U.S., by POLITICO's Zach Montellaro: UC-Irvine law professors Rick Hasen, a well-known expert in elections law, and David Kaye, a former UN appointee focused on freedom of opinion and speech across the globe, are co-directing the new center, called the Fair Elections and Free Speech Center.

KOREAN SPA SAGA — "How far-right rage over transgender rights at an L.A. spa led to chaos in the streets," by LATimes' Leila Miller, Anita Chabria and Laura J. Nelson: "The activists arrived outside the Wi Spa in Westlake Saturday morning, some prepared for the worst...They were met by far-right extremists who over the last few weeks had turned a debate over transgender access at a Korean spa into a rallying cry...By the end, the LAPD had used projectiles and batons and arrested 40 people — mostly for failure to disperse."

— "'The face of hunger': Thousands can't afford to eat in Sacramento. How COVID made it worse ," by SacBee's Alexandra Yoon-Hendricks and Benjy Egel: "Under-resourced and low-income neighborhoods like North Highlands, south Sacramento, west Arden Arcade and North Vineyard have significantly higher rates of food insecurity compared to the rest of the county."

— "Newsom bans sending foster youth to faraway treatment programs after Chronicle abuse investigation," by SFChronicle's Joaquin Palomino and Sara Tiano.

BIDEN, HARRIS AND THE HILL

— Feinstein, Padilla urge California to resolve high-speed rail impasse, by POLITICO's Debra Kahn: Lawmakers left Sacramento last week for a monthlong recess with the state money still unallocated. Feinstein and Padilla warned that lawmakers' indecision could jeopardize federal funding in an infrastructure package currently under consideration that contains $66 billion for rail.

— "With DACA hopes dashed, California students look to Congress," by EdSource's Zaidee Stavely: "Immigrant rights advocates in California and nationwide will focus on pushing the Biden administration and Congress to enact immigration reform that includes a path to citizenship, after a judge last week declared DACA unlawful."

SILICON VALLEYLAND

— "Apple Delays Office Return by At Least a Month as Covid Spikes," by Bloomberg's Mark Gurman: "Apple Inc., responding to a surge in Covid variants, is pushing back its office re-opening by at least a month to October at the earliest and recommending that workers at its retail stores wear masks, according to people with knowledge of the matter."

— "Jeff Bezos returns to Earth after suborbital space trip on Blue Origin's New Shepard," by LATimes' Samantha Masunaga and Andrew Mendez: "The billionaire Amazon founder embarked on a suborbital journey to space along with three others aboard his company Blue Origin's New Shepard rocket and capsule system."

— "Why Elon Musk's Boring Company is finding that traffic is tough to fix," by CNBC's Magdalena Petrova: "The problem with tunnels, Musk said during an event unveiling the company's first demo tunnel in 2018, was that they take a long time to build and are very expensive."

CANNABIS COUNTRY

— Amazon endorsed legal weed. Will it now fight to make it happen? By POLITICO's Natalie Fertig and Theodoric Meyer: When it announced its support for lawmakers' efforts to decriminalize weed last month, Amazon didn't just become the biggest company in America to back marijuana legalization, it captivated the cannabis industry in the process. Now, as bills pushing legalization remain stuck in Congress, activists fighting for liberalized cannabis laws are hoping the e-commerce giant will take the next step and use its considerable D.C. muscle to help get them passed.

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HOLLYWOODLAND

— "Hollywood crews could be forced to vaccinate under new deal with unions," by LATimes' Anousha Sakoui: "Producers will have the option to mandate vaccinations for their cast and crews working in close proximity to actors, leading entertainment industry unions and an alliance of Hollywood producers said Monday night."

MIXTAPE

— "Poway synagogue shooter pleads guilty to murder, attempted murder," by San Diego Union-Tribune's Teri Figueroa.

— " Smoke from West Coast wildfires drifts across the country, fouling East Coast air," by SFChronicle's Steve Rubenstein.

— "In Search of the California Barbecue Tradition," by NYTimes' Tejal Rao.

— " Ex-DEA agent from California charged in U.S. Capitol insurrection," by LATimes' James Queally.

— "Indigenous children who attended American Indian boarding schools honored at Riverside event," by San Bernardino Sun's Joe Nelson.

— " Top Italian Restaurants in the Bay Area," by SFChronicle's Soleil Ho.

BIRTHDAYS

Bob Shrum … Google's Ali-Jae Henke … Edward James Davis … Amazon's Amber Talley … Rabbi Yoel Gold … Jon Lovitz … Jen Bluestein

A message from USA-IT:

California boasts the largest, most robust economy in the United States. But with 840 miles in coastline and a port complex that also provides the nation's largest cargo gateway to Asia, California also faces record amounts of illegal trade. This robs revenues used to provide essential services to Californians. Instead of helping taxpayers, that money is used to fund those who traffic in drugs, apparel, weapons, counterfeit medicines, tobacco, wildlife, and even people. These groups exploit governments and citizens, manipulate financial systems, spur corruption, and cultivate instability and violence that threatens our communities.

That's why our supporting partners at USA-IT are proud to be working on the ground in the Golden State, bringing our shared expertise into California's battle against illegal trade. Learn more.

CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here.

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