Selasa, 04 Juni 2019

Congressional hearings signal growing antitrust problems for big tech - Ars Technica

The European Commission is investigating potentially false claims that Facebook cannot merge user information from the messaging network WhatsApp, which it acquired in 2014. Warsaw, Poland, on December 21, 2016. (Photo by Jaap Arriens/NurPhoto via Getty Images)
Enlarge / The European Commission is investigating potentially false claims that Facebook cannot merge user information from the messaging network WhatsApp, which it acquired in 2014. Warsaw, Poland, on December 21, 2016. (Photo by Jaap Arriens/NurPhoto via Getty Images)
NurPhoto | Getty Images

The House Antitrust Subcommittee will conduct a series of hearings on the growing power of big technology companies, Chairman David Cicilline (D-R.I.) announced on Monday. It's the latest sign of growing interest in antitrust action against the largest technology companies—especially Google, Facebook, Amazon, and Apple.

"After four decades of weak antitrust enforcement and judicial hostility to antitrust cases, it is critical that Congress step in to determine whether existing laws are adequate to tackle abusive conduct by platform gatekeepers or whether we need new legislation to respond to this challenge," Cicilline said in a press release.

The announcement came shortly after news about a deal between the Department of Justice and the Federal Trade Commission, which share responsibility for antitrust enforcement. Under the deal, the Justice Department will focus on investigating Google and Apple, while the FTC will be responsible for Facebook and Amazon. The Justice Department has reportedly begun an investigation of Google; it's not known if the agencies have begun investigating the other firms.

Facebook, Google, and Amazon stock all saw big declines on Monday.

These companies have become so large that it's difficult to predict which concerns will ultimately attract the attention of officials in Congress and the executive branch. Facebook runs the world's largest social network and owns Instagram and WhatsApp. Google dominates the search business and also owns YouTube and Android. Amazon leads in the cloud computing and e-book markets and owns retailers from Whole Foods to Zappos. If a company uses its dominance in one market to prop up its product in another market, that could run afoul of antitrust laws.

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https://arstechnica.com/tech-policy/2019/06/congressional-hearings-signal-growing-antitrust-problems-for-big-tech/

2019-06-04 17:19:00Z
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Fed's Powell, in dovish pivot, is prepared to respond if trade war escalates - Fox Business

Federal Reserve Chairman Jerome Powell said on Tuesday the U.S. central bank is watching how global trade developments are impacting the U.S. economic outlook and is prepared to act as necessary to sustain the near-record expansion.

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“We do not know how or when these issues will be resolved. We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2 percent objective,” he said in a speech.

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Powell’s comments ahead of the “Conference on Monetary Strategy, Tools and Communications Practices” come in the midst of increased calls for interest rate cuts by the Fed.

The CME’s FedWatch Tool, which analyzes the probability of rate moves for upcoming Fed meetings, is currently predicting a 55.9 percent chance of a rate cut in July, with 49.7 percent of traders anticipating the benchmark federal funds rate will be moved into the 2 percent to 2.25 percent range. Only 13.6 percent of traders think interest rates will remain at the current range of 2.25 percent to 2.5 percent by September.

In his speech, Powell stressed that policymakers would respond if inflation remains persistently low, although he did not specify what actions the Fed would take. Core inflation currently remains below the Fed's 2 percent target, although it ticked up slightly in April.

“In this setting, a similar low-side surprise, if it were to persist, would bring us uncomfortably closer to the ELB,” he said, referring to the effective lower bound for interest rates. “My FOMC colleagues and I must — and do — take seriously the risk that inflation shortfalls that persist even in a robust economy could precipitate a difficult-to-arrest downward drift in inflation expectations.”

Despite the more-dovish pivot, however, Powell avoided any other specific issues relating to the current economic condition.

The Fed has not cut interest rates since 2008 when it lowered the interbank lending rate to 0.25 percent -- essentially zero -- in the aftermath of the financial crisis. Interest rates remained at that level until 2015, when the central bank began tightening once again. The Fed has hiked rates nine times since 2015, including four times last year.

During the last Federal Open Market Committee meeting, Powell told reporters that policymakers did not see a strong case for moving in either direction.

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"We do think our policy stance is appropriate right now," he said at the time.

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https://www.foxbusiness.com/economy/powell-in-dovish-pivot-says-fed-is-prepared-to-respond-if-trade-war-escalates

2019-06-04 15:43:49Z
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Walmart will recruit high school students with free SAT prep and $1 a day college tuition - CNN

Walmart announced Tuesday that it will expand its $1 a day college benefit to its current high school students and future high schoolers who work at the company.
It will also offer up to seven hours of free college credit to high school students and provide free SAT and ACT prep through a partner network. Then Walmart will subsidize the cost of students' tuition, books and fees at six non-profit colleges, including the University of Florida.
Students who go through the program while they work at Walmart will be eligible for different types of bachelor's and associate degrees, such as computer technology, business management and supply chain management.
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Unemployment in the United States has fallen to its lowest level in decades, posing a challenge for Walmart and other top retailers. As the retail job openings rate stays above the national average, Walmart has raised its minimum wage, expanded benefits and started to pay bonuses to workers who limit their absences.
Still, Walmart is looking for new ways it can attract new talent.
The retailer is the largest private employer in America. It has more than 1.5 million workers in this country, but less than 25,000 of them are in high school today. That's below the retail industry average, entry-level according to Walmart.
In the past, retail jobs had been attractive to high school students. But Walmart says it has become increasingly difficult to recruit high schoolers because of scheduling difficulties.
Walmart isn't the only company having trouble finding high school students. The youth employment rate has been declining for years as fewer teens enter into the workforce. Several factors are driving this trend, such as an increased focus on youth activities that are more likely to get them into a good college, like summer internships or volunteer programs.
But Walmart believes its offer of free SAT prep, credit for college courses and $1 a day tuition will draw teenagers. It will also try to attract high school students with flexible scheduling and the option of working steady shifts.
Reaching high school students is important to Walmart so the company can identify and train its next crop of talent. Walmart hopes that students who use the education benefit will stick with Walmart after they complete their degrees and move up the ranks at the company either at stores, within the company's supply chain or in corporate roles.
Walmart has a history of building up high school students. More than 300 of Walmart's approximately 4,700 US store managers started off as hourly workers in high school. Walmart's current CEO, Doug McMillon, started working at Walmart in high school, too.
"We see this as a pipeline that we can leverage that we currently aren't," said Julie Murphy, Walmart's executive vice president of people. "We want to be able to create that connection early."
Walmart is doubling down on robot janitors. Here's why
Walmart made the decision to expand the college benefit to high schoolers with "the future needs for our organization" in mind, she added.
Walmart (WMT) first announced the college benefit last year. The retailer says that more than 7,500 workers have been accepted into the program, spanning young adults to workers older than 60. They also range in experience. Some workers, for example, have been at the company for decades. Walmart projects that more than 60,000 students will go through the program in the next four years.
For Walmart, the college program has helped it retain workers and recruit new employees.
"The business aspect of this is clear," said Drew Holler, vice president of associate experience for Walmart US.
Other companies are also focusing on education benefits to draw workers. Hotel chains and McDonald's have recently expanded tuition benefit programs. In 2018, McDonald's started offering $2,500 a year to eligible restaurant employees and $3,000 to managers in tuition assistance. Starbucks also started a tuition-free program in 2015.
-- CNN Business' Katie Lobosco and Lydia DePillis contributed to this article.

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https://www.cnn.com/2019/06/04/business/walmart-college-tuition-benefit-high-school-students/index.html

2019-06-04 15:33:38Z
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CVS to open 1,500 HealthHUB stores over next two years - CNBC

CVS will open 1,500 HealthHUB stores by the end of 2021, the company announced Tuesday ahead of its investor day.

The HealthHUBs are remodeled drugstores that focus more on health services and products and less on candy and greeting cards. CVS opened its first three HealthHUB locations in Houston in February. It plans to open more in Houston, Atlanta, Philadelphia, southern New Jersey and Tampa, Florida, by the end of the year.

"We're pleased with the customer feedback we've received on the HealthHUBs," CVS Pharmacy Kevin Hourican said in an interview. He said these stores have seen higher traffic in the MinuteClinics, increased sales in the front of the store and more prescription volumes.

HealthHUBs include an expanded health clinic, with a lab for blood testing and health screenings. There are also wellness rooms for yoga and seminars, dietitians and respiratory specialists in the HealthHUBs.

Alan Lotvin, CVS executive vice president of transformation, said the 50 stores CVS will add this year will include these same features, while the ones added next year and the year after may look slightly different as the company improves on the design. CVS may tweak the designs for different markets and store sizes. For example, Hourican said stores in the Northeast tend to be smaller than the ones in Texas, so the company will need to pare it down.

Like other retailers, CVS needs to figure out how to keep people coming into its stores, and health services gives consumers something they can't buy online.

The company in May said it decided to close 46 underperforming stores. Hourican said he does not anticipate "meaningful" store closures. However, he said 500 store leases come up for renewal every year and CVS will review those.

Executives also think the HealthHUBs will help advance CVS' vision for its $70 billion acquisition of health insurer Aetna. The combined company says it wants to keep its members healthier and lower its health-care expenses and that managing chronic conditions in its drugstores will help accomplish that.

Measuring progress on this front may take longer, Hourican said. The company will track how its members are engaging with the services in stores and whether that leads to behavior change, clinical outcomes and cost reductions.

"It really is measuring at each step along the way, are you getting what you expect to get," he said. "When you get the clinical outcomes you see the cost savings we modeled."

CVS' announcement comes as executives try to impress analysts and shareholders on their strategic vision at the company's investor day in New York on Tuesday. The company's stock price has slid 20% this year. Executives warned that 2019 would be challenging, between integrating Aetna, navigating regulatory pressure and shrinking profitability for filling prescription drugs.

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https://www.cnbc.com/2019/06/04/cvs-to-add-healthhub-stores-drugstore-announces-ahead-of-investor-day.html

2019-06-04 10:49:38Z
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Feds crank up antitrust heat on Big Tech - Axios

Broad U.S. antitrust action against Big Tech moved firmly from the speculative realm to the investigative mode in the last 72 hours, as both Congress and regulatory agencies appeared to be moving forward with inquiries.

The big picture: While the pressure on the likes of Google, Facebook, Amazon and Apple has been mounting for years, the one-two punch of a public Congressional investigation into their dominance and possible antitrust probes by regulators marks a major escalation in tensions.

  • Last year saw high-profile testimony by CEOs like Facebook's Mark Zuckerberg, but the action will now shift to more mundane yet substantial document and evidence gathering that would form the basis of court cases or settlements.

Driving the news: The House Judiciary Committee said Monday that it was launching a bipartisan investigation into whether big tech platforms are engaged in monopolistic practices.

  • A person familiar with the investigation said that, in addition to public hearings, the inquiry would include requesting documents from a wide range of companies.
  • That could allow the committee to receive information from small competitors of the tech giants who would otherwise be wary of testifying publicly, the person said.
  • "Given the growing tide of concentration and consolidation across our economy, it is vital that we investigate the current state of competition in digital markets and the health of the antitrust laws," said Rep. Jerrold Nadler (D-NY), the committee's chairman.
  • Tech stocks fell in Monday trading as the federal interest in the companies came into focus.

Between the lines: The investigation could help lawmakers develop a factual record to shape legislation overhauling the nation's antitrust laws, which reformers say are inadequate for reining in corporate power as it exists today.

The announcement followed reporting over the weekend and into Monday that the Justice Department and the Federal Trade Commission had split up the field of investigations into anti-competitive behavior by tech giants.

Why it matters: Of the many ways critics want to address concerns about Big Tech, antitrust action has always been among the most significant — although it was largely seen as the least likely route.

  • It could result in action as serious as the firms being broken up, but even if it doesn't, it could seriously distract the platforms' efforts to grow their main businesses and anticipate new waves of tech innovation. Microsoft learned this lesson the hard way after its antitrust fight with Washington two decades ago.

What we're watching: Congressional hearings on the issue will unfold in the coming months, and signs that DOJ and FTC are moving forward with formal investigations into the tech giants could leak out in the form of official inquiries sent to the companies or their competitors.

Our thought bubble: Once inquiries like this get started, they develop their own momentum even as they proceed at what feels like a leaden pace to tech insiders. These companies likely face years of entanglement.

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https://www.axios.com/google-facebook-amazon-apple-antitrust-investigations-91349658-684c-47c2-9ce3-ca9307d7cc59.html

2019-06-04 10:00:08Z
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Senin, 03 Juni 2019

Facebook tumbles on antitrust concerns - CNBC

Facebook shares tumbled more than 8% Monday following a The Wall Street Journal reported that said the FTC will be able to examine the effect of Facebook's practices on digital competition.

Shares of other tech giants took a hit over similar concerns. Amazon's stock was down more than 4% Monday following a Washington Post report that the top U.S. antitrust enforcement agencies have a new agreement over tech oversight. The drop shaved about $35 billion from its market cap, bringing it to $839 billion.

And shares of Google parent company Alphabet were down more than 6% after The Wall Street Journal reported Friday the Justice Department is readying an antitrust investigation. The stock lost about $47 billion from its market cap, bringing it to around $721 billion.

Facebook's drop shaved more than $33 billion from its market cap, bringing it to about $472 billion. Facebook is already under investigation by the FTC over its handling of user data and has said it is expecting a fine of up to $5 billion.

Antitrust regulation has remained a distant threat in recent years as scandals like Cambridge Analytica brought the scale of tech power into focus for the public. In the lead up to the 2020 presidential election, "break up big tech" has become a rallying cry for some, Democratic presidential candidate Sen. Elizabeth Warren, D-Mass.

But a new reported agreement between the Federal Trade Commission and the Department of Justice brings that threat a bit closer to reality. The FTC will take the lead on oversight of Amazon, which the DOJ will have greater jurisdiction over Google, according to the Post. The FTC previously closed an investigation of Google without taking action, but now the DOJ will take another look into Google's practices in search and other areas, according to the Journal.

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Watch: DOJ's Google antitrust probe will hit other tech players, analyst says

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https://www.cnbc.com/2019/06/03/amazon-facebook-and-google-stocks-stumble-over-antitrust-concerns.html

2019-06-03 16:30:52Z
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Kelp Has Been Touted As The New Kale, But It Has Been Slow To Catch On - NPR

Bren Smith is a seaweed farmer and co-founder of GreenWave, a nonprofit that supports and trains ocean farmers. Courtesy of GreenWave hide caption

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Courtesy of GreenWave

A few years ago, many news stories announced that "kelp is the new kale." That the global seaweed harvest is worth more than lemons and limes. That it's the "next great food craze." And that it will be "everywhere by the next decade."

Where are we now?

Kelp is a type of seaweed that grows in large underwater forests and looks a little like green lasagna noodles with curly edges.

Seaweed farming has a lot going for it: It doesn't require any fertilizer, can actually be used as fertilizer, helps fight climate change, and cleans up ocean water by taking in nitrogen compounds. It's also a nutritious sea vegetable — rich in vitamins C and K and minerals like iron and calcium.

But now, the growing industry in the U.S. needs to build infrastructure and to change people's tastes on a larger scale.

Bren Smith is a leading advocate for what he calls restorative ocean farming — growing seaweed alongside shellfish like mussels and oysters, which absorb carbon dioxide and nitrogen compounds, protect shorelines from storm surges, and rebuild marine ecosystems. He co-founded a nonprofit called GreenWave to promote the movement and train aspiring farmers.

"The momentum's been unbelievable ... we have requests to start farms in every coastal state in North America, 20 countries around the world," Smith says.

Smith's farm is just off the coast of Connecticut, on Long Island Sound. There are now farms up and down the New England coast, with more getting started in California and the Pacific Northwest.

"We're growing, and people are eating it," Smith says. "This isn't like a cute little Brooklyn bee farm project creating nice little bottles of honey at the farmers market. ... There are hundreds of thousands of pounds being produced and sold at this point."

Kelp can be used as a pasta substitute, as noodles, sautéed with butter and mushrooms, or ground into powder to use as seasoning. High end restaurants have also used seaweed as a side vegetable and on cookies.

However, some industry specialists say growing seaweed has become perhaps too popular. Anoushka Concepcion is an assistant extension educator with the Connecticut Sea Grant; she works with seafood producers and researchers and answers questions about the latest technology and trends.

"The idea sort of took off before all the practical challenges could be addressed," Concepcion says. "Farmers are finding it difficult now just to get rid of their seaweed."

Seaweed can be used to make seasoning and even gin. Alan Yu/WHYY hide caption

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Alan Yu/WHYY

She explains that the seafood business usually works like this: Oysters and clams are sold right off a boat to a dealer, who sells them to restaurants.

"Dealers are not buying seaweed yet, because there's no established market on their end," Concepcion says.

Smith, GreenWave's co-founder, says all the farmers who are a part of that network have no problem selling their seaweed, but he agrees with Concepcion about another obstacle — a lack of large-scale processing facilities in Connecticut.

His farm grows kelp. He explains that it has a shelf life of a half-hour and needs to be blanched quickly after it leaves the water to stabilize it, which is expensive and fine to do on a small scale. But if more farmers grow kelp, they will need big buildings with giant tubs of hot water and freezers to process it and keep it safe to eat.

On the other side of the country in Alaska, farmers also have no problem growing seaweed, the problem is what to do with it once it's harvested, says Gary Freitag, a marine advisory agent at the Alaska Sea Grant who works closely with the state's marine resources industries.

He says Alaska has about five seaweed farms, and he gets about 20 calls a month from people interested in starting their own. But now the industry needs to address questions like these: Does the market want frozen seaweed, dried seaweed, or other products? Can they process seaweed using existing facilities for salmon and other fish? Do they have enough trucks and transport hardware if the industry takes off ?

"I think in 10 years it will be a fairly substantial industry up here, but now it's just going to be very small and experimental," Freitag says. "We just don't know how to solve all these ... bottlenecks (that inhibit further growth.)"

Smith of GreenWave says that "expectations [for how quickly seaweed would take off] have been set way too high. This is an exciting, scalable, replicable thing that can be a true climate solution, but it's going to be really hard work."

Still, he adds, climate change is a big issue, so this work has to happen fast.

"It's not about growing slow and small because we only have 30 years to address the climate crisis — that would have been great in the 1950s."

Smith says the seaweed business is past the startup phase. Aside from infrastructure, there's another big challenge: How do they get more people to eat it?

That could take some time, says Jet Tila, a celebrity chef who specializes in pan-Asian cuisine. He has used seaweed in many Japanese and Chinese dishes in his restaurants, but when asked to make it the star of a plate in a challenge on the show Iron Chef, he found it difficult.

"Seaweed is not a center-of-the-plate ingredient traditionally," Tila says. "It lacks fat. It has savoriness, [but] it lacks the protein feeling from meat, so it was really difficult to pair it into something to try and make it the star of the show."

He explains that kelp has a distinct, strong ocean flavor; and an unfamiliar, slippery, dense texture — features that can take time for Americans to get used to. He works in large-scale corporate food service and says seaweed will be mainstream if it becomes the center of the plate in those settings.

"You're still in the early-adopting phase; I don't think we're even close to the middle," Tila says. "It's going to be, in my opinion, quite a few years."

Alan Yu reports for NPR member station WHYY's health and science show, The Pulse, in Philadelphia.

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https://www.npr.org/sections/thesalt/2019/06/03/725790613/kelp-has-been-touted-as-the-new-kale-but-its-been-slow-to-catch-on

2019-06-03 14:49:44Z
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