Commission: Possible
May 13, 2022
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“Power concedes nothing without a demand. It never did and it never will.” – Frederick Douglass
Commission: Possible
On Wednesday, the Senate confirmed Georgetown University law professor Alvaro Bedoya to the Federal Trade Commission, filling the fifth spot that’s remained vacant since Rohit Chopra left the agency in September to lead the Consumer Financial Protection Bureau. Chopra’s departure left the FTC in a 2-2 deadlock between Democrats and Republicans, which subsequently left FTC Chair Lina Khan stuck either making compromises with those on the opposite side of the aisle from her or not getting anything done at all. Bedoya’s inclusion on the commission will allow Khan to pursue more progressive policies that focus on anti-monopoly and protections for consumers.
Big Tech is likely to be a focus. The FTC has a month before they have to decide whether or not to get involved in Elon Musk’s $44 billion attempted purchase of Twitter, and many anticipate Khan will undertake efforts to limit Amazon’s powers, having made a name for herself by being openly anti-Amazon. Khan may choose to identify Amazon’s recent purchase of MGM Studios as an effort to maintain its monopoly. Major labor unions published a letter to the FTC explaining that Amazon may use MGM’s content as leverage to force other streaming platforms to use products such as Amazon’s cloud services. The agency has also been looking into how Amazon uses “dark patterns,” which are confusing design interfaces used to trick consumers into signing up for something online, to get more Prime subscribers.
Khan’s expanded power will likely also spur her to pursue stricter rules surrounding noncompete clauses, to which 1 in 5 Americans are bound, particularly in tech or healthcare. Non-competes, along with NDAs or mandatory arbitration, were found to have reduced workers’ wages by 15-25% according to a Treasury Department study released in March. Pharmacy benefit manufacturers, who negotiate rebates from pharmaceutical companies and develop lists of what drugs health insurers will cover, are also a target – the top three PBMs represent nearly 80% of the market. Bedoya is a privacy expert, and the agency has said they plan “to curb lax security practices, limit privacy abuses, and ensure that algorithmic decision-making does not result in unlawful discrimination.” One thing’s for certain: the arrival of a single new person on a five-person agency could have sweeping implications. (Politico)
The Viral Countdown
- North Korea has confirmed its first Covid-19 outbreak, with leader Kim Jong Un imposing a nationwide lockdown on Thursday. Kim called at a ruling party Politburo meeting for a thorough lockdown of cities and counties and said workplaces should be isolated by units to block the virus from spreading.
- Kim was seen wearing a mask in public for the first time since the global pandemic began two years ago. He said it was crucial to control transmissions and eliminate the infection source as fast as possible, while also easing inconveniences to the public caused by the virus controls.
- He insisted the country will overcome the outbreak because its government and people are “united as one.” Kim has still called for scheduled construction, agricultural development, and other state projects to move forward despite the lockdowns. (AP)
Break With Sedition
- India’s top courts announced that they would be putting the country’s sedition law on hold. Critics of the law have claimed that Prime Minister Narendra Modi had been using it to silence criticism and dissent.
- The Supreme Court order asked the Indian government and state authorities to refrain from registering fresh cases under the harsh law while it is under review and will allow accused people detained under it to seek bail from courts.
- The 152-year-old law has been used extensively during Modi’s term as leader of India, but he is not the first leader to use the law to silence critics. During previous administrations, people were charged with sedition for liking a Facebook post critical of the administration, criticizing a yoga guru, cheering a rival cricket team, drawing political cartoons, and not standing up in a movie theater for the national anthem. (ABC)
Additional World News
- Chinese jet aborts takeoff, catches fire, causing minor injuries from evacuation (Reuters)
- Sri Lanka president to name new PM as unrest simmers amid economic crisis (Guardian)
- On Norway’s Arctic border with Russia, a town freezes ties with its eastern neighbour (Reuters)
- Ukraine tries its first Russian soldier for alleged war crimes (NPR)
- El Salvador gives woman accused of abortion 30 years prison (ABC)
- Russia demands formal Polish apology for Warsaw anti-war protest (Reuters)
- Biden to Host Southeast Asian Leaders as He Tries to Return Focus to China (NYT, $)
Charting A New Force
- The U.S. Army is preparing to revamp its forces stationed in Alaska as the country predicts tensions with foreign rivals might rise in the near future. Both Russia and China see the Arctic as an important region thanks to its location and natural resources.
- Preparations in Alaska include new troop training methods, changing of troop structures, and the possibility of new vehicles better adapted to the cold. In terms of training, the Army is planning to stage more joint Arctic exercises with Canadian troops so that soldiers have more exposure to Arctic weather conditions. Armored divisions using outdated vehicles could be swapped out for more mobile light infantry units, or the old vehicles might just be swapped out with more snow-capable vehicles.
- Overall, while the U.S. is paying attention to Alaska and the Arctic as a possible pressure point in the future, discussions are still in the planning stages and large overhauls are some ways away. (AP)
A Newsom Approach
- On Wednesday, California Governor Gavin Newsom proposed a new set of tax incentives aimed at drawing in more liberal employers from states that are poised to restrict women’s reproductive rights should the Roe v. Wade decision be overturned by the Supreme Court. The tax breaks would act as an additional incentive to invite employers to move to California if the state they’re located in passes legislation banning abortion, restricting the rights of female employees.
- In addition to the tax breaks, Newsom also proposed a reproductive health funding plan budget increase to $125 million, nearly doubling the plan’s previous budget size. The news comes as the country shows its division over reproductive rights following the leaking of a Supreme Court draft overturning Roe v. Wade, which guarantees a woman the right to abortion without government restriction. Red states around the country have already proposed restrictive abortion legislation should the case be overturned, which has many women worried for their rights. (NYT, $)
Additional USA News
- California Can’t Keep Semiautomatic Guns From Young Adults, Court Rules (NYT, $)
- IVF treatment faces ‘clear and present danger’ from US anti-abortion effort (Guardian)
- How the ‘most conservative governor in North Carolina history’ became a RINO (Politico)
- ‘Unthinkable tragedy’: US COVID-19 death toll surpasses 1 million (ABC)
- More than a dozen homes destroyed in Coastal Fire near Laguna Beach (CBS)
- Anthony Avalos’ family and L.A. County reach tentative $32-million settlement (LAT, $)
- Surfside Condo Collapse Victims Reach $997 Million Settlement (NYT, $)
Distressed For Success
- Who knew some of us were already in on the big fashion trends? Balenciaga released its line of “fully destroyed footwear” this week, and people had some questions – and some criticisms, as the distressed version of the company’s Paris High-Top Sneaker comes with a price tag of $1,850.
- Pre-destruction, the price is a measly $625, over half the price. But for an extra $1,225, you can get rips, scuffs, and dirt (we think – it could just be clever coloring made to look like dirt). “BALENCIAGA” is written along the side of the shoe in permanent marker as well in the ad campaign, though the photos of the actual shoes customers get are less of a mess. There will only be 100 pairs of the distressed version sold.
- Social media users were quick to chime in on the strange concept, comparing them to “torn up Converse my ma begged me to throw out when I was in high school.” Others said it seems Balenciaga is running some sort of social experiment, including photos of their past overpriced, distressed shoe offerings. The good news is, perhaps if you have a Forrest-Gump-esque pair of sneakers in the back of your closet, they could be worth a small fortune. (NBC)
Additional Reads
- China’s rover makes surprising water discovery at Mars landing site (CNN)
- Scientists Discover Unexplained Abundance of Rare Nuclear Fusion Fuel on Earth (Vice)
- Tonga volcanic eruption the most powerful in more than a century (CNN)
- These Bats Buzz Like Hornets to Scare Off Predators (NYT, $)
- Supermassive black hole at centre of Milky Way seen for first time (Guardian)
- Boeing clashes with key supplier ahead of Starliner spacecraft launch (CNN)