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antitrust fight is comingNvidia has joined the $3 trillion valuation club as a blistering A.I. rally has turned it into the world’s second-most valuable company behind Microsoft. and Justice Department are set to proceed with antitrust investigations against the duo, and OpenAI, writes The Times’s David McCabe. is already looking into Microsoft, according to The Wall Street Journal, over how the company structured a deal with the start-up Inflection AI to avoid scrutiny. In March, Microsoft hired almost all of the start-up’s staff and agreed to pay around $650 million to license its technology.
Persons: David McCabe Organizations: Nvidia, Microsoft, Justice Department, Wall Street
Federal regulators have reached a deal that allows them to proceed with antitrust investigations into the dominant roles that Microsoft, OpenAI and Nvidia play in the artificial intelligence industry, in the strongest sign of how regulatory scrutiny into the powerful technology has escalated. Under the arrangement, the Justice Department will take the lead in investigating whether the behavior of Nvidia, the biggest maker of A.I. will play the lead role in examining the conduct of OpenAI, which makes the ChatGPT chatbot, and Microsoft, which has invested $13 billion in OpenAI and made deals with other A.I. The agreement signals intensifying scrutiny by the Justice Department and the F.T.C. into A.I., a rapidly advancing technology that has the potential to upend jobs, information and people’s lives.
Persons: Biden Organizations: Microsoft, Nvidia, Justice Department, Federal Trade Commission, Google, Apple Locations: OpenAI, A.I
The Government Takes On Ticketmaster
  + stars: | 2024-05-30 | by ( Sabrina Tavernise | David Mccabe | Will Reid | ) www.nytimes.com   time to read: 1 min
Over recent years, few companies have provoked more anger among music fans than Ticketmaster. Last week, the Department of Justice announced it was taking the business to court. David McCabe, who covers technology policy for The Times, explains how the case could reshape America’s multibillion-dollar live music industry.
Persons: David McCabe Organizations: Ticketmaster, Department of Justice, The Times
U.S. Calls for Breakup of Ticketmaster Owner
  + stars: | 2024-05-23 | by ( David Mccabe | Ben Sisario | ) www.nytimes.com   time to read: 1 min
The Justice Department on Thursday sued Live Nation Entertainment, the concert giant that owns Ticketmaster, asking a court to break up the company over claims it illegally maintained a monopoly in the live entertainment industry. In the lawsuit, which is joined by 29 states and the District of Columbia, the government accuses Live Nation of dominating the industry by locking venues into exclusive ticketing contracts, pressuring artists to use its services and threatening its rivals with financial retribution. Those tactics, the government argues, have resulted in higher ticket prices for consumers and have stifled innovation and competition throughout the industry. “It is time to break up Live Nation-Ticketmaster,” Merrick Garland, the attorney general, said in a statement announcing the suit, which is being filed in the U.S. District Court for the Southern District of New York.
Persons: ” Merrick Garland Organizations: Department, Thursday, Nation Entertainment, Ticketmaster, District of Columbia, Southern, of Locations: U.S, of New York
The Justice Department and a group of states plan to sue Live Nation Entertainment, the concert giant that owns Ticketmaster, as soon as Thursday, accusing it of illegally maintaining a monopoly in the live entertainment industry, said three people familiar with the matter. That helped the company maintain a monopoly, raising prices and fees for consumers and limiting innovation in the ticket industry, the people said. The government will argue that tours promoted by the company were more likely to play venues where Ticketmaster was the exclusive ticket service, one of the people said, and that Live Nation’s artists played venues that it owns. Live Nation is a colossus of the concert world and a force in the lives of musicians and fans alike. Its scale and reach far exceed those of any competitor, encompassing concert promotion, ticketing, artist management and the operation of hundreds of venues and festivals around the world.
Organizations: Justice Department, Live Nation Entertainment, Ticketmaster
A bipartisan group of senators released a long-awaited legislative plan for artificial intelligence on Wednesday, calling for billions in funding to propel American leadership in the technology while offering few details on regulations to address its risks. Innovation in Artificial Intelligence,” the Senate leader, Chuck Schumer, and three colleagues called for spending $32 billion annually by 2026 for government and private-sector research and development of the technology. But they said congressional committees and agencies should come up with regulations on A.I., including protections against health and financial discrimination, the elimination of jobs, and copyright violations caused by the technology. “It’s very hard to do regulations because A.I. is changing too quickly,” Mr. Schumer, a New York Democrat, said in an interview.
Persons: Chuck Schumer, ” Mr, Schumer, , Organizations: Intelligence, New, New York Democrat Locations: New York
The company argues that the law violates the First Amendment by effectively killing an app in the U.S. that millions of Americans use to share their views. Another problem: a divestiture within 270 days is practically impossible, Sapna Maheshwari and David McCabe report for The Times. DealBook spoke with Maheshwari about the lawsuit filed yesterday and what happens next. Do legal experts think TikTok has a chance at winning? Alan Rozenshtein, an associate professor at the University of Minnesota Law School, says that a victory is possible based on the “very, very substantial First Amendment challenge” involved.
Persons: TikTok, Sapna Maheshwari, David McCabe, DealBook, Maheshwari, Alan Rozenshtein, Organizations: U.S, The Times, University of Minnesota Law School Locations: Washington, ByteDance, U.S
Less than two weeks after President Biden signed a bill that will force TikTok’s Chinese owner, ByteDance, to sell the popular social media app or face a ban in the United States, TikTok said it sued the federal government on Tuesday, arguing the law was unconstitutional. TikTok said that the law violated the First Amendment by effectively removing an app that millions of Americans use to share their views and communicate freely. It also argued that a divestiture was “simply not possible,” especially within the law’s 270-day timeline, pointing to difficulties such as Beijing’s refusal to sell a key feature that powers TikTok in the United States. “For the first time in history, Congress has enacted a law that subjects a single, named speech platform to a permanent, nationwide ban, and bars every American from participating in a unique online community with more than one billion people worldwide,” the company said in the 67-page petition it provided, which initiates the lawsuit. “There is no question: The act will force a shutdown of TikTok by Jan. 19, 2025.”TikTok is battling for its survival in the United States, with the fight set to play out primarily in courts over the next few months.
Persons: Biden, TikTok, Jan, ” TikTok Locations: United States, China
The U.S. government’s landmark antitrust trial against Google’s search business is nearing its conclusion. Under the Trump administration, the Justice Department and the Federal Trade Commission started investigating Amazon, Apple, Google and Meta, the parent company of Instagram and WhatsApp, for monopolistic behavior. The government has since sued all four companies — Google twice — in what it says is an effort to rein in their power and promote more competition. Closing arguments wrap up on Friday in Google’s first antitrust suit on allegations that it has a monopoly in internet search. and 17 states sued Amazon, accusing it of protecting a monopoly by squeezing sellers on its vast marketplace and favoring its own services.
Persons: Trump Organizations: U.S, Justice Department, Federal Trade Commission, Apple, Google, Big Tech, Amazon Locations: Google’s
The judge overseeing a landmark U.S. antitrust challenge to Google tried to poke holes in both sides’ cases during closing arguments Thursday, as he weighs a ruling that could reshape the technology industry. Judge Amit P. Mehta was presiding over the first day of closing arguments in the most consequential tech antitrust case since the U.S. government sued Microsoft in the late 1990s. The Justice Department has sued Google, accusing it of illegally shoring up a monopoly in online search. On Thursday, Judge Mehta questioned the government’s argument that Google’s dominance had hurt the quality of the experience for searching for information online. “Certainly I don’t think the average person would say, ‘Google and Amazon are the same thing,’” Judge Mehta said.
Persons: Judge Amit P, Mehta, Judge Mehta Organizations: Google, Microsoft, The
The biggest U.S. challenge so far to the vast power of today’s tech giants has reached its climax. v. Google — over whether the tech giant broke federal antitrust laws to maintain its online search dominance. Google insists that consumers use its search engine because it is the best product. Many antitrust experts expect he will land somewhere in the middle, ruling only some of Google’s tactics out of bounds. The trial is the biggest challenge to date to the vast power of today’s tech giants, which have defined an era when billions of people around the world depend on their products for information, social interaction and commerce.
Persons: Amit P, Mehta Organizations: Justice Department, Google, Apple, District of Columbia, Meta Locations: U.S
is a Times reporter based in Bangkok who has been covering Asia for more than 25 years. She focuses on in-depth and investigative stories.
Locations: Bangkok, Asia
Just over a year ago, lawmakers displayed a rare show of bipartisanship when they grilled Shou Chew, TikTok’s chief executive, about the video app’s ties to China. Their harsh questioning suggested that Washington was gearing up to force the company to sever ties with its Chinese owner — or even ban the app. But behind the scenes, a tiny group of lawmakers began plotting a secretive effort that culminated on Tuesday, when the Senate passed a bill that forces TikTok to be sold by its Chinese owner, ByteDance, or risk getting banned. For nearly a year, lawmakers and some of their aides worked to write a version of the bill, concealing their efforts to avoid setting off TikTok’s lobbying might. To bulletproof the bill from expected legal challenges and persuade uncertain lawmakers, the group worked with the Justice Department and White House.
Persons: Shou, Little, TikTok Organizations: Senate, Justice Department, White Locations: China, Washington, United States
A bill that would force a sale of TikTok by its Chinese owner, ByteDance — or ban it outright — was passed by the Senate on Tuesday and is expected to be signed quickly into law by President Biden. Now the process is likely to get even more complicated. Congress passed the measure citing national security concerns because of TikTok’s Chinese ties. The measure is likely to face legal challenges, as well as possible resistance from Beijing, which could block the sale or export of the technology. It’s also unclear who has the resources to buy TikTok, since it will carry a hefty price tag.
Persons: ByteDance, , Biden, TikTok, It’s Locations: United States, Beijing
For decades, the United States has fashioned itself the champion of an open internet, arguing that the web should be largely unregulated and that digital data should flow around the globe unhindered by borders. The government has argued against internet censorship abroad and even funded software that lets people in autocratic states get around online content restrictions. Digital rights groups and others around the world have taken notice — and raised the question of how the moves against TikTok contradict the United States’ arguments in favor of an open internet. A Russian opposition blogger, Aleksandr Gorbunov, posted on social media last month that Russia could use the move to shut down services like YouTube. And digital rights advocates globally are expressing fears of a ripple effect, with the United States providing cover for authoritarians who want to censor the internet.
Persons: Aleksandr Gorbunov, authoritarians Organizations: TikTok, United Locations: United States, Israel, Ukraine, States, Russian, Russia
The measure, a modified version of a stand-alone bill that the House passed last month, will be considered alongside a package of foreign aid for Ukraine, Israel and Taiwan, according to text of the legislation released by House leadership. The president could extend the deadline by another 90 days if progress toward a sale was being made. House lawmakers are expected to vote Saturday on a package of legislation that includes the TikTok ban and other bills popular with Republicans, a maneuver intended to induce lawmakers to vote for the foreign aid. If the package passes, the measures will be sent as a single bill to the Senate, which could vote soon after. President Biden has said he’ll sign TikTok legislation into law if it reaches his desk.
Persons: Biden Organizations: House, Republicans, Senate Locations: United States, Ukraine, Israel, Taiwan
Warner Bros. Discovery said on Monday that two members of its board of directors, Steven Newhouse and Steven Miron, had stepped down after the company learned about an investigation into whether their presence on the board violated antitrust law. Federal law forbids most corporate officers and board members to simultaneously serve on the boards of their competitors. Mr. Newhouse and Mr. Miron are both executives at Advance, a private, family-held business whose holdings include the Condé Nast glossy magazine empire that publishes titles such as Vogue and The New Yorker.
Persons: Discovery, Steven Newhouse, Steven Miron, Newhouse, Miron Organizations: Warner Bros, Advance, Vogue Locations: Yorker
The United States vs. the iPhone
  + stars: | 2024-03-26 | by ( Sabrina Tavernise | David Mccabe | Carlos Prieto | ) www.nytimes.com   time to read: 1 min
Listen and follow The DailyApple Podcasts | Spotify | Amazon MusicLast week, the Justice Department took aim at Apple, accusing the company of violating competition laws with practices intended to keep customers reliant on their iPhones. David McCabe, who covers technology policy for The Times, discusses the latest and most sweeping antimonopoly case against a titan of Silicon Valley.
Persons: David McCabe Organizations: Spotify, Justice Department, Apple, The Times Locations: Valley
TikTok Bill’s Progress Slows in the Senate
  + stars: | 2024-03-15 | by ( David Mccabe | Sapna Maheshwari | ) www.nytimes.com   time to read: +1 min
After a bill that would force TikTok’s Chinese parent company to sell the app or face a nationwide ban sailed through the House at breakneck speed this week, its progress has slowed in the Senate. Senators — some of whom have their own versions of bills targeting TikTok — will need to be convinced. And the process of taking the House bill and potentially rewriting it to suit the Senate could be time consuming. The legislation mandates that TikTok’s parent company, ByteDance, sell its stake in the app within six months or face a ban. He said that there could be adjustments made to the bill but that there was bipartisan support to wrest the app from Chinese ownership.
Persons: Chuck Schumer, , TikTok, Richard Blumenthal Organizations: Democratic Locations: New York, Connecticut
TikTok is one of the most popular and largest social media apps around the globe — with great brand recognition and loyal users. That’s the conundrum facing TikTok as Washington lawmakers push a bill that would force the app’s Chinese parent company, ByteDance, to sell it or face having it banned in the United States. The bill passed the House on Wednesday but could face an uphill climb in the Senate. Rumors are already swirling on Wall Street about who could be interested in buying TikTok. The U.S. president, according to the bill passed by the House, would have to affirm that a deal cut the app off from ByteDance.
Persons: Steven Mnuchin, Mr, Mnuchin Organizations: CNBC, U.S Locations: Washington, United States, U.S, ByteDance
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Organizations: The
Why a Sale of TikTok Would Not Be Easy
  + stars: | 2024-03-13 | by ( David Mccabe | ) www.nytimes.com   time to read: +1 min
Legislation that could eventually mandate a sale of TikTok is moving forward. The House on Wednesday approved the bill to ban TikTok unless ByteDance sells the app to a buyer the government signs off on. Under the legislation, the president will need to agree that the sale meets those conditions. ByteDance and TikTok have not said how they would handle a sale, if it’s required. But legal experts say that in the case of a sale, ByteDance would likely need to decide between selling all of TikTok globally versus trying to cordon off its U.S. business.
Persons: ByteDance, TikTok, Organizations: Senate Locations: China
House lawmakers are expected to vote starting at around 10 a.m. on Wednesday on legislation meant to force ByteDance, the Chinese internet company, to sell its wildly popular social media app TikTok. If the House passes the bill, it faces an uncertain future in the Senate. Senator Chuck Schumer of New York, the Democratic leader, has not yet committed to bringing it up for a vote. Why have House lawmakers been supporting the bill? Many are worried that the Chinese government could demand the personal data of Americans from ByteDance and that, under Chinese law, ByteDance would have to comply.
Persons: ByteDance, Chuck Schumer Organizations: Lawmakers, Democratic Locations: United States, China, Beijing, New York, ByteDance
The House on Wednesday passed a bill with broad bipartisan support that would force TikTok’s Chinese owner to either sell the hugely popular video app or be banned in the United States. The move escalates a showdown between Beijing and Washington over the control of technologies that could affect national security, free speech and the social media industry. Republican leaders fast-tracked the bill through the House with limited debate, and it passed on a lopsided vote of 352-65, reflecting widespread backing for legislation that would take direct aim at China in an election year. The action came despite TikTok’s efforts to mobilize its 170 million U.S. users against the measure, and amid the Biden administration’s push to persuade lawmakers that Chinese ownership of the platform poses grave national security risks to the United States.
Organizations: Republican, Biden Locations: United States, Beijing, Washington, China
What Happens Next With TikTok?
  + stars: | 2024-03-13 | by ( David Mccabe | ) www.nytimes.com   time to read: +1 min
What happens next with TikTok? Next, the bill is heading to a skeptical Senate, after which President Biden would need to sign it into law. What happens next in the legislative process? The bill needs to be approved by the Senate, which could also make changes to the text of the legislation. For example, because the bill’s text explicitly names TikTok and ByteDance, some are worried it could violate a part of the Constitution that bars Congress from targeting specific entities with legislation.
Persons: Biden, Chuck Schumer, hasn’t Organizations: Senate, Democratic Locations: New York
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