Month: November 2017

Read Harold Feld

He is a lawyer for the Public Knowledge, which advocates for, “Policies that serve the public interest.”

He lives and breaths this stuff, and he has looked at the merger between AT&T and Time Warner, and the rumored remedies that the US Department of Justice is demanding, and concludes that the remedies demanded by the government, including requiring a divestiture of CNN, have extensive precedent and are reasonable in the context of the industry:

I want to start by applauding Randal Stephenson for coming out quickly and denying the rumors that DoJ asked them to sell CNN as the price of getting the merger done. At the same time, however, he acknowledged that negotiations were “complicated,” and that he and recently confirmed Asst A.G. for Antitrust Makan Delrahim were still “getting to know each other” and “figure out the ask on the other side of the table.” He also made it clear that, if DoJ does challenge, AT&T is prepared to go to court and are confident they will win.

AT&T is generally pretty good at persuading everyone that DoJ doesn’t really have a case against them. As folks may recall, despite the fact that the proposed AT&T/T-Mo transaction violated just about every basic tenant of existing antitrust law, AT&T managed to convince everyone for the longest time that DoJ was just playing hardball with them and didn’t really mean it because DoJ didn’t really have a case. While Stephenson refused to discuss what was negotiated, the rumors suggest it was a demand to divest either DIRECTV or the Turner Broadcasting cable channels (which include CNN, as well as TNT, HBO and a bunch of other real popular programming.) Once again, you have antitrust experts who do not have any particular experience with cable mergers shaking their heads and predicting that DoJ has no case.

In fact, demanding divestiture of either the must have content or the DIRECTV distribution platform is precisely the remedy you would expect if you believe the deal presents significant harm because of the vertical integration issues. That’s been the position of my employer, Public Knowledge, which has opposed the transaction since AT&T announced the deal. (That predates Trump’s election, for those of you wondering.) If you want a more detailed understanding of the theory of the harms, you can find it in my boss Gene Kimmelman’s testimony to Congress here. While generally true that vertical deals are hard to challenge, the cable industry has long been something of an exception, and the remedy here is similar to what the FTC imposed on the AT&T/Turner deal in 1996, where the FTC imposed stock divestitures and restructuring to eliminate the voting interest of John Malone and Liberty Media because of Malone/Liberty’s ownership TCI, which was then the largest cable operator in the United States (25% national market share). Given the massive criticism of “behavioral” remedies and a call to return to “structural” remedies from the right and the left, it’s unsurprising that DoJ would want actual divestiture rather than go the Comcast/NBCU consent decree route.

I would add that consent decrees tend to have limited effect over the long run, and that Public Knowledge has opposed this merger since before Trump’s election.

While a lot of people have tried to cast opposition to the deal as political interference by Trump and his Evil Minions, it is clear that opposition could be easily justified.

This might be another case of a stopped clock being right twice a day, or it might be a vendetta by Donald Trump. 

Just don’t jump to conclusions yet.

Read the rest.

But of Course

Remember the company Whitefish?

It had only two employees, and then it got a $300 million contract to repair Puerto Rico’s electrical grid following the damage from hurricane Maria.

They had ties to the Trump campaign and Interior Secretary Zinke.

Well, one of their first jobs, a high power transmission line, just failed, cutting power coverage from 40% to 18%.

So not a surprise.

Just When I Thought That It Could Not Get Any Weirder………

We now have allegations that Michael Flynn, Trump’s former NSC Advisor, tried to cut a deal with representatives of Turkish President Recep Tayyip Erdoğan to kidnap dissident cleric Fethullah Gülen and transport him to Turkey:

Donald Trump’s former national security adviser, Michael Flynn, is under investigation for involvement in an alleged plot to kidnap a Turkish dissident cleric living in the US and fly him to an island prison in Turkey in return for $15m, it was reported on Friday.

………

The new allegation, that Flynn and his son engaged in a conspiracy to arrange the rendition of Fethullah Gülen to the Erdoğan government – which accuses the cleric of plotting an abortive coup in July 2016 – could if confirmed result in even more serious charges.

In September, the Wall Street Journal reported a meeting about the plan, in which former CIA director James Woolsey is said to have participated. Friday’s report describes a second meeting involving both Flynns at the 21 Club restaurant, a prohibition-era New York speakeasy patronised by Trump, in mid-December. According to “people familiar with the investigation”, it was at this encounter that the $15m payment was discussed.

Even if this were legal, and it might be under a legal precedent from the late 1800s, this is SERIOUSLY f%$#ed up.

Even for Flynn, a man who typifies the flying monkey faction of modern conservatism, this is off the charts.

Once again, reality outstrips the most outlandish products of my imagination.

Speaking of Overrated Silicon Valley Brogrammers

On appeal, the decision of the UK Employment Tribunal to classify drivers to be employees of Uber has been upheld on appeal:

Uber suffered another setback in its biggest market outside the United States after a British employment tribunal rejected the ride-hailing company’s argument that its drivers are self-employed.

The decision on Friday, which affirmed a ruling issued last year, means that Uber will have to ensure that its drivers in Britain receive a minimum wage and paid time off. That creates problems for a common hiring model in the so-called gig economy that relies on workers who do not have formal contracts.

Companies argue that such labor practices increase flexibility on both sides of the hiring equation. But critics counter that the system is exploitative and deprives employees of important safeguards like unemployment insurance.

The ruling was the second blow to Uber’s business here in recent months. In September, London’s transport authority barred the company from operating in the British capital.

In the case before the employment tribunal, two men, James Farrar and Yaseen Aslam, had challenged Uber on behalf of a group of 19 drivers, saying that the service had denied them basic protections by classifying them as self-employed. Uber countered with an argument it has used around the world: Its drivers were independent contractors.

“You can hide behind technology, but the laws are there, and they need to be obeyed and respected,” Mr. Aslam, 36, said in an interview after the tribunal issued its decision. “The impact of this ruling could affect thousands of drivers, and not just drivers but millions of workers across the U.K.”

The core of Uber’s business model is that they can make other people cover the bulk of their costs, because ………Internet.

That they are finally getting push-back on this is heartening.

About F%$#ing Time

When Danny Greg first moved to San Francisco to work at Github in 2012, he used to get high-fives in the street from strangers when he wore his company hoodie.

These days, unless he’s at an investor event, he’s cautious about wearing branded clothing that might indicate he’s a techie. He’s worried about the message it sends.

Greg is one of many people working in tech who are increasingly self-conscious about how the industry – represented by consumer-facing tech titans like Google, Facebook, Amazon, Apple, Twitter and Uber – is perceived: as underregulated, overly powerful companies filled with wealthy tech bros and “brilliant assholes” with little regard for the local communities they occupy. Silicon Valley has taken over from Wall Street as the political bogeyman of choice, turning tech workers – like it or not – into public ambassadors for the 1%.

“I would never say I worked at Facebook,” said one 30-year-old software engineer who left the company last year to pursue an alternative career. Instead, at dinner parties he would give purposefully vague responses and change the subject. “There’s this song and dance you learn to play because people are quick to judge.”

Like Wall Street before, the tech industry is a justifiable punchbag. “MBA jerks used to go and work for Wall Street, now wealthy white geeks go to Stanford and then waltz into a VC or tech firm.”

Gee, my heart bleeds for these guys.

Linkage

Cat meets Crayfish. Sorry, no sound.

Taibbi Nails it Again

In reviewing the revelations of Donna Brazile’s new book, Matt Taibbi identifies the root problem here:

………

The point of the Brazile story isn’t that the people who “rigged” the primary were afraid of losing an election. It’s that they weren’t afraid of betraying democratic principles, probably because they didn’t believe in them anymore.

If you’re not frightened by the growing appeal of that line of thinking, you should be. There is a history of this sort of thing. And it never ends well.

That Republicans have believed this is not a surprise. Disdain for the hoi polloi is at the core of conservative ideology, and has been since before Plato’s Republic.

The neoliberal wing of the Democratic Party has embraced this as well.

We see it in opaque and confusing programs (Obamacare), “nudge” theory, unaccountable “experts” running our lives (ISDS, Fed, etc.).

It’s why we are seeing an upsurge in populism.

And Roy Moore Takes His Clown Show to a New Level


Cannot post this without invoking Lily Allen

I was surprised when I read of allegations that Alabama candidate for the US Senate Roy Moore has been alleged to have had sexual encounters with teen girls, but only because I was expecting that the skeletons in his closet to be pre-teen boys, because that is how homophobe hypocrites tend to roll.

Leigh Corfman says she was 14 years old when an older man approached her outside a courtroom in Etowah County, Ala. She was sitting on a wooden bench with her mother, they both recall, when the man introduced himself as Roy Moore.

It was early 1979 and Moore — now the Republican nominee in Alabama for a U.S. Senate seat — was a 32-year-old assistant district attorney. He struck up a conversation, Corfman and her mother say, and offered to watch the girl while her mother went inside for a child custody hearing.

“He said, ‘Oh, you don’t want her to go in there and hear all that. I’ll stay out here with her,’ ” says Corfman’s mother, Nancy Wells, 71. “I thought, how nice for him to want to take care of my little girl.”

Alone with Corfman, Moore chatted with her and asked for her phone number, she says. Days later, she says, he picked her up around the corner from her house in Gadsden, drove her about 30 minutes to his home in the woods, told her how pretty she was and kissed her. On a second visit, she says, he took off her shirt and pants and removed his clothes. He touched her over her bra and underpants, she says, and guided her hand to touch him over his underwear.

“I wanted it over with — I wanted out,” she remembers thinking. “Please just get this over with. Whatever this is, just get it over.” Corfman says she asked Moore to take her home, and he did.

Two of Corfman’s childhood friends say she told them at the time that she was seeing an older man, and one says Corfman identified the man as Moore. Wells says her daughter told her about the encounter more than a decade later, as Moore was becoming more prominent as a local judge.

Aside from Corfman, three other women interviewed by The Washington Post in recent weeks say Moore pursued them when they were between the ages of 16 and 18 and he was in his early 30s, episodes they say they found flattering at the time, but troubling as they got older. None of the three women say that Moore forced them into any sort of relationship or sexual contact.

………

Neither Corfman nor any of the other women sought out The Post. While reporting a story in Alabama about supporters of Moore’s Senate campaign, a Post reporter heard that Moore allegedly had sought relationships with teenage girls. Over the ensuing three weeks, two Post reporters contacted and interviewed the four women. All were initially reluctant to speak publicly but chose to do so after multiple interviews, saying they thought it was important for people to know about their interactions with Moore. The women say they don’t know one another.

………

The legal age of consent in Alabama, then and now, is 16. Under Alabama law in 1979, and today, a person who is at least 19 years old who has sexual contact with someone older than 12 and younger than 15 has committed sexual abuse in the second degree. Sexual contact is defined as touching of sexual or intimate parts. The crime is a misdemeanor punishable by up to one year in jail.

Moore, of course, is claiming that it’s all a political hit job.

Me, I have a simpler explanation:  You are a skeevy perv.

If you are wondering why this is happening now, you could put it down to happenstance, or increased awareness following l’affaire Weinstein, but I have a simpler explanation:  God hates you, Roy Moore.

Stopped Clock, H1B Edition

The Trump administration is starting to apply due diligence to the widely abused H1B guest worker program, and companies used to doing whatever the f%$# they want are having a tantrum:

Donald Trump came into office promising a restrictive new approach to immigration and there has been little question about his intention to follow through — with one seeming exception. Despite its enthusiastic rhetoric about the H-1B program, which provides temporary visas to high-skilled workers, the administration failed to make significant changes in time to impact the program’s annual lottery this April, leaving some who had anticipated action fuming. It has also declined to take up any of the legislative proposals for H-1B overhaul.

But a crackdown has been in the works, albeit more quietly. Starting this summer, employers began noticing that U.S. Citizenship and Immigration Services was challenging an unusually large number of H-1B applications. Cases that would have sailed through the approval process in earlier years ground to a halt under requests for new paperwork. The number of challenges — officially known as “requests for evidence” or RFEs — are up 44 percent compared to last year, according to statistics from USCIS. The percentage of H-1B applications that have resulted in RFEs this year are at the highest level they’ve been since 2009, and by absolute number are considerably higher than any year for which the agency provided statistics.

The H-1B program is controversial largely because IT firms based in India have used it to hire for rote computer programming jobs. These firms, like Infosys Ltd. and Tata Consultancy Services Ltd., have been working to reduce their reliance on the program, in anticipation of a less receptive political landscape. The overall number of H-1B applications dropped this year for the first time in five years. The skeptical eye the government is taking to applications has extended to all types of employers, according to immigration lawyers. Many are rethinking their own use of H-1B as a result.

The H1B program was intended to allow for someone to be hired if they have a skill set that could not be found in the US.

The H1B program does not work that way in reality.  It’s actually a source of cheap labor, and a way to lower wages generally in the industry.

Donald Trump is right on this, and the delicate snowflakes who are experiencing butt hurt over this are wrong.

Mark Zuckerberg Wants Me to Send Him What?!?!?!?!?

Facebook is testing a new feature in Australia.

Here is how it workssend Facebook your nude picture, and they promise to try to prevent revenge porn posts on their platform.

Seriously? Send a nude picture of myself to Mark Zuckerberg and his Evil Minions?

Facebook is asking users to send the company their nude photos in an effort to tackle revenge porn, in an attempt to give some control back to victims of this type of abuse.

Individuals who have shared intimate, nude or sexual images with partners and are worried that the partner (or ex-partner) might distribute them without their consent can use Messenger to send the images to be “hashed”. This means that the company converts the image into a unique digital fingerprint that can be used to identify and block any attempts to re-upload that same image.

Facebook is piloting the technology in Australia in partnership with a government agency headed up by the e-safety commissioner, Julia Inman Grant, who told ABC it would allow victims of “image-based abuse” to take action before pictures were posted to Facebook, Instagram or Messenger.

“We see many scenarios where maybe photos or videos were taken consensually at one point, but there was not any sort of consent to send the images or videos more broadly,” she told the Australian broadcaster.

It makes me want to go all. “Jules in Pulp Fiction.”

I gotta figure that if you send Facebook your nude pix, you will shortly be seeing a lot of ads for penis enlargement, boob jobs, body hair removal, or anal bleaching.

Tweet of the Day

A socialist beat the House whip with no support from the party and is singing Solidarity Forever at his victory party, we can do this everywhere https://t.co/BVW9wOmW5b

— Will Bloom 🍞🌹 (@WillWBloom) November 8, 2017

Here is a low quality video of him singing:

🌹When a marine veteran socialist beats the GOP majority whip in Virginia 🌹 pic.twitter.com/QxUCCY9TRG

— Metro DC DSA (@dc_dsa) November 8, 2017

Election Night

In New Jersey, Democrats have retaken the Governor’s mansion, but this is not a surprise.

Jersey is firmly blue, and outgoing Republican Governor Chris Christie is well past his sell by date, and the polls predicted a romp, so this is not a surprise.

Virginia has been a much closer affair, but the Democrats won, taking the Governor’s race, and the Lt. Governor and Attorney General races.

In the Governor’s race, Ralph Northam beat Ed Gillespie by 9% beating the polls by 6%.

Further down ticket, the Democrats have picked up at least 14 seats in the Virginia House of Delegates, with 4 as-yet-uncalled close races possibly flipping the chamber.

Particularly heartening is the fact that Virginia’s first transgender person to win an election, defeated a Republican who is arguably the most virulent anti-LGBT bigot in the state house:

Danica Roem, who will be Virginia’s first openly transgender elected official, defeated Del. Robert G. Marshall (R-Prince William), a culture warrior who opposes LGBT rights. Elizabeth Guzman, who raised more money than any Democratic candidate except for Hurst, unseated Del. L. Scott Lingamfelter (R-Woodbridge).

A good night.

F%$# the Mouse

The LA Times published an article describing how much corporate welfare Disney Land is extracting from the city of Anaheim.

The mouse didn’t like this, so they banned LA Times movie reviewers from advance showings of their movies, including things like Marvel and Star Wars movies.

In response many critics from other papers have announced that they will not be participating in advance showings, and a number of critics groups have barred all Disney movies from consideration at their year end awards.

If this were about an Times critic violating an embargo date, I could see some justification, but this is just thuggery.

BTW, Disney just caved.

Good, but someone at the movie studio needs to be fired.

Stopped Clock: Republican Tax Plan Edition

In an otherwise anodyne New York Times article about various sources of opposition to Republican tax plan, and they reveal a good idea buried in their black hearted evil plans. Needless to say, large multinationals hate the proposed excise tax on payment made to a company’s foreign affiliates:

That may be an uphill battle, as key groups begin coming out in opposition to parts of the bill, including a proposed excise tax of 20 percent on payments made by American companies to foreign affiliates. The provision is aimed at preventing American companies from shifting profits abroad through payments, such as royalties, made to subsidiaries or other foreign affiliates.

American multinational corporations are especially concerned about the proposal, which would raise just more than $150 billion over a decade. They say the tax will wind up harming American companies and their consumers.

The American Forest and Paper Association said it was “very troubled” by the provision, which it said “would lead to massive overcollection of tax in the United States.” The provision is also coming under fire from pharmaceutical companies and the small-government advocacy groups spearheaded by the billionaire Republican megadonor brothers Charles G. and David H. Koch, who are trying to generate opposition to the excise tax from other conservative groups.

………

Mr. [Kevin] Brady [House Ways and Means Committee chairman] said lawmakers are working with multinational companies to address their concerns. “But make no mistake,” he said, “we have to have safeguards in place so that companies aren’t encouraged to shift their earnings and their profits offshore and to low-tax havens, and we need strong guardrails to make sure they’re not importing deductions, exclusions and other tax rate issues.”

My heart bleeds borscht for these folks.

They assign their IP to a foreign subsidiary in the Caymans, or the Isle of Mann, or Ireland, and pay “royalties”, and voila, no taxes paid.

Of course, this will be dropped in conference committee, because, of course, tax evading job cutting multinationals are the Republican political base, but this is actually good idea.

Pay attention.  It’s likely to be a long time before the Republicans get an element tax policy right.

Live in Obedient Fear, Citizen!

Juli Briskman, who shot to fame flipping off Donald Trump’s motorcade, has been fired:

A woman whose picture went viral after she raised her middle finger at Donald Trump as his motorcade passed her on her bicycle has been fired from her job.

A woman whose picture went viral after she raised her middle finger at Donald Trump as his motorcade passed her on her bicycle has been fired from her job.Juli Briskman was cycling in Virginia last month when she offered the gesture in a gut reaction to Trump’s policies, she said.

“He was passing by and my blood just started to boil,” she told the Huffington Post. “I’m thinking, Daca recipients are getting kicked out. He pulled ads for open enrollment in Obamacare. Only one third of Puerto Rico has power. I’m thinking, he’s at the damn golf course again.

“I flipped off the motorcade a number of times.”

A photographer traveling with the presidential motorcade snapped Briskman’s picture and the image quickly spread across news outlets and social media. Many hailed Briskman as a hero, with some saying she should run in the 2020 election. Late-night comedy hosts also picked up the story.

Briskman had been working as a marketing and communications specialist for a Virginia-based federal contractor, Akima, for six months. She thought it best to alert the HR department to the online fuss. Bosses then called her into a meeting, she said.

“They said, ‘We’re separating from you,’” Briskman told the Huffington Post. “‘Basically, you cannot have lewd or obscene things in your social media.’ So they were calling flipping him off obscene.”

You dissed the Dear Leader, of course you were fired

Just be glad that he didn’t send you to Guantánamo.

Not really. 

I just wish that we lived in a first world nation with meaningful job protections.

Thoughts and Prayers

Gunman Kills at Least 26 in Attack on Rural Texas Church

The new normal.

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Linkage

Thor Ragnarok 4D: (May contain some spoilers for the actual movie)

I Do Not Know What to Make of This, but It Seems Significant

There is some sort of seriously f%$#ed up dynastic sh%$ going on inside of the house of Saud:

Saudi Arabia announced the arrest on Saturday night of the prominent billionaire investor Prince Alwaleed bin Talal, plus at least 10 other princes, four ministers and tens of former ministers.

The announcement of the arrests was made over Al Arabiya, the Saudi-owned satellite network whose broadcasts are officially approved. Prince Alwaleed’s arrest is sure to send shock waves both through the kingdom and the world’s major financial centers.

He controls the investment firm Kingdom Holding and is one of the world’s richest men, owning or having owned major stakes in 21st Century Fox, Citigroup, Apple, Twitter and many other well-known companies. The prince also controls satellite television networks watched across the Arab world.

The sweeping campaign of arrests appears to be the latest move to consolidate the power of Crown Prince Mohammed bin Salman, the favorite son and top adviser of King Salman.

At 32, the crown prince is already the dominant voice in Saudi military, foreign, economic and social policies, stirring murmurs of discontent in the royal family that he has amassed too much personal power, and at a remarkably young age.

The king had decreed the creation of a powerful new anti-corruption committee, headed by the crown prince, only hours before the committee ordered the arrests.

The machinations of the House of Saud are a bag full of cats, but I find this behavior unusual, even by the standards of Riyadh.

Normally, when power dynamics shift, you find people quietly removed from their positions, and any arrests or detentions are on the down-low.  Public notice mass detentions of the royals are unprecedented.

Because of this, I do not think that this is coming from a position of strength.

Mohammed bin Salman’s (MBS) policy initiatives have not gone well, the Yemen operation is a hole sucking resources and diplomatic credibility, and the conflict with Qatar is not turning out as expected, and I think there has been increasing push-back from elements of the royal family against the meteoric rise of MBS.

What this means in the longer term for Saudi Arabia is unclear to me, but I think that there are likely to be some major shifts in the monarchy.

This could be a new path forward, or it could be rearranging deck chairs on the Titanic.

My money is on the the latter, but I’m an optimist.