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Feb 1 (Reuters) - A chip industry group is warning that if U.S. allies do not adopt curbs on semiconductor manufacturing equipment to China that are comparable to U.S. controls, they will not be effective. However, in a lengthy comment dated Jan. 31 on the October regulations, the group expressed concern that the allies' curbs would not be nearly as restrictive as the U.S. controls. It noted that U.S. equipment companies' share of the Chinese market has eroded for the past two years, as Chinese companies anticipated the new curbs. The U.S. Department of Commerce, which issued the October rules and has been working with allies, had no immediate comment. SEMI has over 2,500 members worldwide, including leading U.S. equipment makers Lam Research and Applied Materials.
REUTERS/Aly Song/File PhotoJan 30 (Reuters) - The Biden administration has stopped approving licenses for U.S. companies to export most items to China's Huawei, according to three people familiar with the matter. Qualcomm Inc (QCOM.O) in 2020 received permission to sell 4G smartphone chips to Huawei. Licenses for 4G chips that could not be used for 5g, which might have been approved earlier, were being denied, the person said. American officials placed Huawei on a trade blacklist in 2019 restricting most U.S. suppliers from shipping goods and technology to the company unless they were granted licenses. But U.S. officials granted licenses that allowed Huawei to receive some products.
[1/2] Employees work at a production line manufacturing chips inside a factory of an electronics company in Chizhou, Anhui province, China March 21, 2018. Upcoming meetings between U.S. President Joe Biden and Japanese Prime Minister Fumio Kishida and Dutch Prime Minister Mark Rutte at the White House on Friday and next Tuesday, respectively, will provide forums to discuss the issue, said a person briefed on U.S. officials' thinking. But, "these visits will not result in immediate announcements and (are) part of our ongoing consultations on these issues," the person cautioned. A key commerce department official said in October that such agreements were coming "in the near term." Reporting by Alexandra Alper; Editing by Leslie Adler and Lincoln Feast.
Tokyo Electron (8035.T), Japan's leading chip manufacturing equipment maker, relies on China for about a quarter of its revenue. The other top producers of chip-making gear are the United States and the Netherlands, home to ASML (ASML.AS), another of the world's biggest makers of chip-making tools. SEEKING A DEALU.S. officials are quick to play down the differences between the United States, Japan and other allies. But unless Japan and the Netherlands impose their own export controls, China will soon perfect other ways of getting the equipment it needs, even as American companies stand to lose market share. "For better or worse, Japan's semiconductor strategy is moving in accordance with what the United States wants."
Jan 11 (Reuters) - U.S. President Joe Biden said in an opinion piece in the Wall Street Journal that Democrats and Republicans need to come together to pass strong bipartisan legislation in order to hold major tech companies accountable. Most importantly, Biden said he wanted to see "serious federal protections for Americans' privacy," including putting limits on how much data like location, biometrics and health information can be collected. "We must hold social-media companies accountable for the experiment they are running on our children for profit," he wrote, citing young people's struggles with bullying, violence, trauma and mental health. He also urged a reform of Section 230 of the Communications Decency Act to force tech companies to "take responsibility for the content they spread and the algorithms they use." Reporting by Rishabh Jaiswal in Bengaluru and Diane Bartz in Washington; Editing by Lisa Shumaker and Alexandra AlperOur Standards: The Thomson Reuters Trust Principles.
The Justice Department's lawsuit, filed by the Trump administration, alleged that Google violated antitrust law in how it maintained dominance in search and search advertising. For example, it pointed to billions of dollars that Google paid annually to Apple (AAPL.O), LG Electronics Inc (066570.KS) and others to ensure that Google search was the default on their devices. The company also argued that there was no evidence that agreements that Google made related to Google Assistant or Internet-of-Things devices hurt competition. Google faces additional allegations of antitrust violations from dozens of states. It also argues that Google broke antitrust law to hamper rivals, such as travel-oriented websites.
WASHINGTON, Dec 30 (Reuters) - A judge has set Jan. 3 for the first pre-trial hearing in the Biden administration's case against Microsoft (MSFT.O) over its $69 billion bid to take over "Call of Duty" maker Activision Blizzard (ATVI.O). Microsoft has countered that the deal would benefit gamers and gaming companies alike, offering to sign a legally binding consent decree with the FTC to provide "Call of Duty" games to rivals including Sony (6758.T) for a decade. Microsoft made the argument in a filing aimed at convincing a judge at the FTC to allow the deal to proceed. The case is a sign of the administration of U.S. President Joe Biden taking a muscular approach to anti-trust enforcement. Reporting by Alexandra Alper; editing by Grant McCoolOur Standards: The Thomson Reuters Trust Principles.
"There'll certainly be an impact to the fourth quarter," Chief Commercial Officer Ryan Green told reporters on a call on Thursday. While other U.S. airlines got back to their feet relatively quickly, Dallas-based Southwest is still limping back to normalcy. Employee unions say they have repeatedly warned Southwest management that the airline's technology systems badly needed upgrades. Flight attendants have been complaining about technological failures at the airline for years, according to Lyn Montgomery, president of the Southwest Airlines Flight Attendants Union, a local 556 of the Transport Workers Union. The comments echoed those of the Southwest Airlines Pilots Association, which said leadership had failed to adapt operations to address repeated systems failures, despite years of calls for improvements by the union.
The United States this week also expanded its voluntary genomic sequencing program at airports, adding Seattle and Los Angeles to the program. "Previous COVID-19 wastewater surveillance has shown to be a valuable tool and airplane wastewater surveillance could potentially be an option," she wrote. French researchers reported in July that airplane wastewater tests showed requiring negative COVID tests before international flights does not protect countries from the spread of new variants. They found the Omicron variant in wastewater from two commercial airplanes that flew from Ethiopia to France in December 2021 even though passengers had been required to take COVID tests before boarding. Osterholm and others said mandatory testing before travel to the United States is unlikely to keep new variants out of the country.
WASHINGTON, Dec 29 (Reuters) - The Biden administration will hold Southwest Airlines (LUV.N) "accountable" if it fails to fulfill commitments to customers for "controllable delays and cancellations," Transportation Secretary Pete Buttigieg said on Thursday, after the airline canceled thousands of flights in the wake of winter storms. In a letter to Southwest CEO Bob Jordan dated Dec. 29, Buttigieg also said the company has agreed to honor "reasonable" requests for reimbursement for alternative transportation for passengers whose flights were canceled or delayed between Dec. 24 and Jan. 2. Southwest did not immediately respond to a request for commentReporting by David Shepardson; Writing by Alexandra Alper; Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.
[1/2] Southwest Airlines passengers wait in line at the baggage services office after U.S. airlines, led by Southwest, canceled thousands of flights due to a massive winter storm which swept over much of the country before and during the Christmas holiday weekend, at Dallas Love Field Airport in Dallas, Texas, U.S., December 28, 2022. REUTERS/Shelby Tauber/File PhotoDec 29 (Reuters) - The process for repositioning airline crew and aircraft following storms that dramatically disrupted Southwest Airlines (LUV.N) flights was "manual," CEO Bob Jordan told reporters on a briefing call Thursday. Executives also said the airline would reimburse passengers whose travel was disrupted for full flight fare in addition to expenses including hotels, meals, rental cars and gas for rental cars. Reporting by Alexandra Alper and Ismail Shakil; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.
REUTERS/Shelby TauberWASHINGTON, Dec 29 (Reuters) - Employee unions say they warned Southwest Airlines Co. management for years that its technological systems badly needed upgrades, as the low-cost carrier canceled thousands of flights during the busy holiday travel crunch. Flight attendants have been complaining about technological failures at the airline for years, according to Lyn Montgomery, president of the Southwest Airlines Flight Attendance Union. On a Sept. 27 picket line, she added, one sign read, "Picket line loading, Southwest Airlines technology failure." The comments echoed those of the Southwest Airlines Pilots Association, which blamed leadership failures in adapting airline operations to address repeated systems failures despite years of calls for improvements by the union. Company officials acknowledged that current problems stem, in part, from an inability of internal logistics and scheduling systems to recover after widespread storm disruptions.
A spokesperson for the Washington Post, which Bezos bought in 2013 for $250 million, said it is not for sale. "A Bloomberg acquisition of the (Post) is not necessarily just a business decision. According to Axios, Bloomberg sees Dow Jones, also the publisher of Barron's and MarketWatch, as the ideal fit but would buy the Post if Bezos was interested in selling. Dow Jones did not immediately respond to Reuters' request for comment. Reuters competes with Dow Jones and Bloomberg News, a unit of Bloomberg L.P., a provider of financial news.
Dec 23 (Reuters) - The Biden administration on Friday said it was ordering Mastercard Inc (MA.N) to stop blocking the use of competing networks to process debit payments. Under a proposed order, Mastercard would have to start providing competing payment networks with the customer account information they need to process payments, the Federal Trade Commission, which enforces competition laws, said in a statement. “This is a victory for consumers and the merchants who rely on debit card payments to operate their businesses,” Holly Vedova, director of the FTC’s Bureau of Competition, said in a statement. "We will continue the work to update our processes to comply with the consent order and provide even greater choice," the company said. Reporting by Ismail Shakil and Alexandra Alper; Editing by Tim Ahmann, Kirsten Donovan and Deepa BabingtonOur Standards: The Thomson Reuters Trust Principles.
According to the Axios report, Bloomberg sees News Corp-owned (NWSA.O) Dow Jones, also the publisher of Barron's and MarketWatch, as the ideal fit but would buy the Post if Amazon.com Inc (AMZN.O) founder Jeff Bezos was interested in selling. Bloomberg L.P., the Washington Post and Dow Jones did not immediately respond to Reuters' requests for comment. "The transaction would be challenged only if the resulting choices leave insufficient competition in the market for either users or suppliers. In October, Rupert Murdoch had started a process that could reunite his media empire, News Corp and Fox Corp (FOXA.O), nearly a decade after the companies split. Reuters competes with Bloomberg News, a unit of Bloomberg L.P., as a provider of financial news.
TikTok said in a statement it was "disappointed that Congress has moved to ban TikTok on government devices - a political gesture that will do nothing to advance national security interests - rather than encouraging the Administration to conclude its national security review." The bill gives the White House Office of Management and Budget 60 days "to develop standards and guidelines for executive agencies requiring the removal" of TikTok from federal devices. Many federal agencies, including the White House and the Defense, Homeland Security and State departments, already banned TikTok from government-owned devices. "The ban is minimal, extraordinarily minimal on the overall TikTok user base," said Matthew Quint, a brand expert at Columbia Business School. "The question is more, 'will this action get the ball rolling to create a bipartisan movement to fully ban the service because of a potential threat to national security?'"
REUTERS/Igor RussakWASHINGTON, Dec 21 (Reuters) - The Biden administration on Wednesday unveiled new curbs on technology exports to Russia's Wagner military group, in a bid to further choke off supplies to the contractor over its role in the Russian invasion of Ukraine. The Wagner group, which was added to a trade blacklist in 2017 after Russia annexed Ukraine's Crimea region, will now be labeled a military end user and face tough new curbs on access to technology made anywhere in the world with U.S. equipment. “The Wagner Group is one of the most notorious mercenary organizations in the world and is actively committing atrocities and human rights abuses across Ukraine,” said Under Secretary of Commerce for Industry and Security Alan Estevez. The Wagner group, a private military contractor with close ties to the Kremlin, was founded in 2014 after Russia seized and annexed Ukraine's Crimea peninsula and sparked a separatist insurgency in Ukraine's eastern Donbas region. Reporting by Alexandra Alper and David Shepardson; Editing by Leslie Adler and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.
Factbox: Chinese companies added to U.S. entity list
  + stars: | 2022-12-15 | by ( ) www.reuters.com   time to read: +1 min
WASHINGTON, Dec 15 (Reuters) - The Biden administration on Thursday added Chinese memory chipmaker YMTC and 21 "major" Chinese players in the artificial intelligence chip sector to a trade blacklist, broadening its crackdown on China's chip industry. YMTC was added to the list over fears it could divert American technology to previously blacklisted Chinese tech giants Huawei Technologies Co Ltd [RIC:RIC:HWT.UL] and Hikvision (002415.SZ). Here is a brief overview of some of the key actions taken as part of the package:FRESH ENTITY LISTINGSThe Biden administration added 35 Chinese companies and one Japan-based subsidiary of a Chinese company (YMTC) to the entity list, barring their suppliers from selling them U.S. technology without a hard-to-obtain permit. REMOVALS FROM THE UNVERIFIED LISTThe Biden administration removed 27 Chinese entities from the unverified list. Companies are added to the unverified list if the United States cannot complete on-site visits to determine whether they can be trusted to receive sensitive U.S. technology exports, inspections which in China require approval from the commerce ministry.
WASHINGTON, Dec 15 (Reuters) - The Biden administration on Thursday added Chinese memory chipmaker YMTC and 21 "major" Chinese players in the artificial intelligence chip industry to a trade blacklist, broadening its crackdown on China's chip industry. It also comes as Congress prepares to finalize legislation to bar the U.S. government from buying products that contain semiconductors made by YMTC, Chinese memory chipmaker CXMT or China's top chip manufacturer SMIC. The Commerce Department on Thursday also targeted nine Chinese entities for allegedly seeking to support China's military modernization, including Shanghai Micro Electronics Equipment Group Co Ltd (SMEE), China's only lithography company. Two of the Chinese companies removed from the unverified list - YMTC and SMEE- were added to the entity list. Being added to the unverified list forces U.S. suppliers to perform greater due diligence before shipping to the targeted companies.
WASHINGTON, Dec 15 (Reuters) - The Biden administration on Thursday plans to add Chinese memory chipmaker YMTC and 21 "major" Chinese players in the artificial intelligence chip industry to a trade blacklist, broadening its crackdown on China's chip industry, the Commerce Department said. A total of 35 Chinese entities will be added to the trade blacklist, known as the entity list. The Biden administration plans to remove 26 Chinese entities from the so-called unverified list thanks to successful site visits. Being added to the unverified list forces U.S. suppliers to perform greater due diligence before shipping to the targeted companies. Commerce Department officials have attributed greater cooperation from Beijing in site checks to a new rule announced in October.
WASHINGTON, Dec 14 (Reuters) - The Biden administration plans to remove some Chinese entities from a red flag trade list, a U.S. official told Reuters on Wednesday amid closer cooperation with Beijing. The plan to remove them soon from the so-called "unverified" list is thanks to greater willingness from the Chinese government to permit U.S. site visits, the person said. The decision, which mean U.S. exporters will no longer have to conduct additional due diligence before sending goods to the Chinese entities, may not herald a broader thaw. Companies are added to the unverified list because the United States cannot complete on-site visits to determine whether they can be trusted to receive sensitive U.S. technology exports. In October, YMTC was added to the unverified list along with dozens of other Chinese entities, fueling widespread speculation that the company would be added to the entity list.
U.S. lawmakers unveil bipartisan bid to ban China's TikTok
  + stars: | 2022-12-13 | by ( ) www.reuters.com   time to read: +2 min
WASHINGTON, Dec 13 (Reuters) - Republican Senator Marco Rubio on Tuesday announced bipartisan legislation to ban China's popular social media app TikTok, ratcheting up pressure on owner ByteDance Ltd amid U.S. fears the app could be used to spy on Americans and censor content. The bill comes as scrutiny of TikTok has grown in Washington in recent weeks, after a failed bid by the Trump administration to ban the video-sharing app. TikTok app logo is seen in this illustration taken, August 22, 2022. REUTERS/Dado Ruvic/Illustration/File PhotoAlabama and Utah on Monday joined other U.S. states prohibiting the use of TikTok on state government devices and computer networks due to national security concerns. CFIUS and TikTok have been in talks for months aiming to reach a national security agreement to protect the data of TikTok's more than 100 million users.
Starting with the Trump administration, the United States has been tightening the noose around China's high-tech ambitions. But why worry about older chip technology? “28 nanometer” refers to a chip technology commercially used since 2011. But it is a giant in older technology, including chips that regulate power flows in electronics. The importance of older chip technology hit the industry in the face in 2021 as a shortage of those chips prevented manufacturing of millions of cars and consumer electronics.
The alliance has a network of more than 250,000 people it can mobilize to flood politicians with letters. Referred to by Mr. Flaugh as “the back office,” this network sprang into action this year to support a bill that requires Florida districts to report all book objections to the state. Some librarians and parents are concerned it will have a chilling effect. The summit also drew other prominent political figures from the right, including Senator Rick Scott of Florida and the Trump administration cabinet members Ben Carson and Betsy DeVos. In her remarks, Ms. DeVos called for dismantling the Department of Education, which she used to run.
"The legal precedent is not on the side of the FTC," said Andre Barlow, an antitrust lawyer at Doyle, Barlow & Mazard PLLC. Barlow pointed to three recent mergers challenged by the FTC or Justice Department that were ultimately allowed to proceed. Those cases share something else in common with the proposed Microsoft deal: in each instance, a company would merge with a supplier in a so-called "vertical" merger. "Vertical merger challenges are really difficult to win so it will be an uphill battle for the FTC," said Roger Alford, who teaches law at the University of Notre Dame. Reuters reported last month that Microsoft was expected to offer remedies to EU antitrust regulators in the coming weeks to stave off formal objections to the deal.
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