Tech groups are watching the first review of the Privacy Shield U.S.-EU trans-Atlantic data sharing pact, hoping for the agreement to continue, as others expect will occur (see 1708210043). A positive joint review would "strengthen trust among all industry sectors and citizens on both sides of the Atlantic," BSA|The Software Alliance said Thursday. "It will provide businesses with the legal certainty they need ... and will help further increase the number of Privacy Shield-certified companies." Software & Information Industry Association Vice President-Public Policy Mark MacCarthy said SIIA will "continue to help the U.S. and EU delegations in any way possible to make the review a success.” The review is Monday and Tuesday.
U.K. Secretary of State for Culture, Media and Sport Karen Bradley is referring Fox's planned buy of Sky to the Competition and Markets Authority for a full, six-month investigation, she said in a statement Thursday to Parliament. The CMA investigation is to be on media plurality and genuine commitment to broadcasting standards grounds, she said. She said she received letters from Sky and Fox confirming they disagreed with her announcement Tuesday that she likely would refer the deal (see 1709120010) and that CMA will provide a recommendation on whether to allow the transaction, including possible conditions. Fox in a statement said it "look[s] forward to engaging constructively with the CMA, as independent authority, and hope that the findings of this process will be respected by the Secretary of State." It still hopes to close on Sky by the end of June.
​President Donald Trump signed an executive order Wednesday blocking Canyon Bridge Fund’s $1.3 billion acquisition of Lattice Semiconductor, supplier of smart connectivity products for Ultra HD and other applications, on national security grounds, said the White House. Canyon Bridge is a private equity fund with investors that include China Venture Capital Fund Corp., which is “owned by Chinese state-owned entities that manages industrial investments and venture capital,” said a White House statement. Trump blocked the sale under 1950's Defense Production Act, which authorizes the president to “suspend or prohibit certain acquisitions that result in foreign control of a United States business if he concludes, among other things, that there is credible evidence that the foreign interest exercising control might take action that threatens to impair the national security of the United States,” said the White House. Cited national security risks include “the potential transfer of intellectual property to the foreign acquirer,” the importance of semiconductor “supply chain integrity” to the U.S. government and the fact that the U.S. government buys Lattice products. Lattice representatives didn’t comment. The company's 8-K filing Sept. 1 at the SEC said the Committee on Foreign Investment in the United States would recommend to Trump that he should block the deal. “Lattice remains of the view that the proposed transaction does not raise any national security concerns that cannot be addressed by the comprehensive mitigation measures that Lattice and Canyon Bridge have proposed to implement,” the company said then.
Personal safety and emergency notifications are the most desired smart home features among European broadband households with at least one smartphone, said a Tuesday Strategy Analytics report. Alerts to fire and other emergencies were five times more desired than the ability to schedule or adjust window coverings remotely, said the survey of 6,000 broadband households. The least desired functions were ability to program lights, cover windows and control a gate.
Commercial passenger air travel is booming in Asia, and air carriers -- trying to entice customers to pay for in-flight connectivity -- could see some success by first providing such service for free, Northern Sky Research analyst Claude Rousseau blogged Tuesday. NSR said Asia will dominate in-flight connectivity demand growth over the next decade, with 20-plus airlines having installed the satellite-based systems. NSR said more than 1,000 in-service passenger jets likely will be offering such connectivity by year-end, reaching 5,400 over the next 10 years.
Representatives from the National Customs Brokers & Forwarders Association of America are scheduled to meet with the FCC this week about their concerns about the agency's elimination of Form 740 filing requirements for imported RF devices (see 1707130032). NCBFAA is pleased the requirements went away, but worries about what's seen as new liabilities for customs brokers included in the order, said Alan Klestadt, a lawyer with Grunfeld Desiderio, who represents the NCBFAA. “The new regulations talk about customs brokers being responsible to validate FCC compliance,” Klestadt said during an NCBFAA conference Monday. “There isn't a person in this room who's qualified to do that, and I say that without any disrespect. There's just no way.” Naming customs brokers as “one of the parties with responsibility to validate” is a “huge additional burden,” he said.
Decusoft, Md7 and Tru Communication, doing business as TCPrinting.net, separately settled FTC allegations they misled consumers about participation in the EU-U.S. Privacy Shield agreement and failed to complete the certification process, said the agency in a Friday news release. Commissioners voted 2-0 to issue the administrative complaints and accept the consent agreements, which will be published in the Federal Register and available for comment through Oct. 10. The complaints are the first enforcement cases since the trans-Atlantic data protection and sharing arrangement was established in early 2016 (see 1602020040 and 1602040018). The companies are barred from misrepresenting their participation in privacy or data security programs sponsored by governments, self-regulatory regimes or standard-setting organizations and must comply with FTC reporting requirements, the release said. Tru Communication owner Jon Harris told us he used a third party to get self-certified with Privacy Shield and received a letter from the organization saying his small business was certified. But he said the letter may have meant he was certified with the third party, not Privacy Shield. "We got confused," he said. Harris said the website statement his company is Privacy Shield-compliant was removed. He said he isn't pursuing Privacy Shield certification because it's long and complicated and it was at the behest of one of his foreign customers. The other companies didn't comment. The agency said it also filed a complaint against Decusoft for falsely claiming participation in the Swiss-U.S. Privacy Shield framework. Almost 2,500 companies participate in the EU-US framework.
Intel won a reprieve from the European Court of Justice, which sided with the company's appeal against a lower court ruling that upheld a 1.06 billion euro ($1.26 billion) European Commission fine (see 0912170127). The ECJ said in a Wednesday news release it's sending the case back to the General Court to re-examine Intel's arguments whether its rebates to computer makers and a retailer restricted competition. "While this case concerns events that happened more than a decade ago, we have always believed that our actions were lawful and did not harm competition," said Intel General Counsel Steven Rodgers in a statement. In 2009, the EC alleged Intel "abused" its market dominance for x86 CPUs from 2002 to 2007, with a 70 percent market share that made it difficult for competitors like Advanced Micro Devices to enter, said the release. Regulators alleged that Intel gave rebates to Dell, Lenovo, HP and NEC as long as they bought from the chipmaker "all, or almost all, of their x86 CPUs," and also made payments to Germany-based microelectronics retailer Media-Saturn-Holding to exclusively sell computers with the x86 CPUs. The EC said Intel's strategy "induced the loyalty" of those companies, significantly reducing competition and consumer choice, and imposed the penalty, noted the ECJ. Intel appealed the EC decision but the General Court dismissed that action in 2014. Intel appealed to ECJ. The court said the lower court failed to examine "errors allegedly committed" by regulators on an "as efficient competitor" test, which Intel raised. ECJ said the lower court failed to analyze "whether the rebates at issue were capable of restricting competition." The high court rejected Intel's argument that the EC lacked territorial jurisdiction.
Chilean regulators OK'd AT&T's proposed buy of Time Warner. AT&T said Monday that Chilean Fiscalía Nacional Económica approval came with "targeted behavioral conditions" aimed at specific competition issues, not requiring sales or divestitures. Regulatory reviews are ongoing in the U.S. and Brazil.
In Shanghai, Taiwan, Tokyo and Berlin, Sharp Friday launched what it called an 8K Ecosystem dubbed “Horizon Broadened.” Calling it a “core strategy,” with the help of Foxconn, Sharp pushed 8K cameras, content editing, storing, and transferring and broadcasting. Foxconn CEO Terry Gou referred to 8K manufacturing when he announced the company’s $10 billion investment in a Kenosha, Wisconsin, plant in July (see 1707270018). Sharp also said it will participate in construction of a Foxconn global R&D center for future display technology in Shenzhen, China, where it will test 8K + 5G applications.