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U.S. President Joe Biden delivers remarks prior to signing an executive order on “promoting competition in the American economy” during an event in the State Dining Room at the White House in Washington U.S., July 9, 2021.

Evelyn Hockstein | Reuters

Joe Biden has positioned himself as a pro-competition president, delighting progressives by installing their wish list of liberal antitrust enforcers early in his administration.

But this fall, his digital competition agenda will truly be put to the test, as the first of the government’s tech anti-monopoly cases is finally argued in federal court.

Tuesday marked a convergence of several long-awaited actions in competition policy and enforcement. First, the Federal Trade Commission announced its long-awaited antitrust suit against Amazon. Shortly after that, the Federal Communications Commission chair announced a proposal to reinstate net neutrality rules, which prohibit internet service providers from favoring certain websites over others.

At the same time, the Department of Justice has been litigating its own monopolization suit against Google in Washington, D.C. District Court, three years after the initial complaint was filed during the last administration. The Justice Department’s second antitrust challenge against Google is set to go to trial early next year.

During Biden’s presidency, plenty of ink has been spilled over his antitrust enforcers’ boundary-pushing approaches, particularly as they eyed deals and potential misconduct in the tech industry. But until this month, none of the federal tech monopoly trials had kicked off.

Before the swearing in of Democrat Anna Gomez this week, the FCC had been deadlocked, unable to move forward with any measures that couldn’t gain the support of at least one of its Republican commissioners.

Antitrust cases and government rulemaking are famous for their often long timelines. But with all of these actions now set in motion, Americans are one step closer to seeing how the Biden administration’s competition vision plays out.

Tim Wu, who previously served in the White House as a key architect of the Biden administration’s competition agenda, said in an interview that many of the seeds planted early in the administration, if not yet bearing fruit, are at least “sprouting.”

Wu said that in the early days of his time at the White House, the administration came up with what was called the “grand unified theory of antitrust revival.” It included appointing strong enforcers and starting the White House Competition Council.

Biden laid out his competition goals in an executive order issued in 2021, which urged the FCC to restore net neutrality rules and for the FTC to “challenge prior bad mergers,” among other things.

Since the time of the executive order, Hannah Garden-Monheit, director of Competition Council policy at the White House, said those principles have “built up a lot of momentum” and have “become embedded and institutionalized in the work of the government.”

Even as several prongs of competition policy take shape, the Biden administration is up against the clock. As the 2024 presidential election approaches, the administration faces the possibility of losing its chance to follow through on some of the actions it has spearheaded.

That timeline may be particularly concerning for the ability to implement and uphold net neutrality rules, given that the FCC didn’t have a Democratic majority able to advance the rulemaking until just this week. Wu and other net neutrality advocates have blamed the telecom industry for opposing Biden’s initial FCC nominee, Gigi Sohn, holding up her nomination for well over a year until she ultimately withdrew. (CNBC parent company NBCUniversal is owned by internet service provider Comcast.)

Gigi Sohn testifies during a Senate Commerce, Science, and Transportation Committee confirmation hearing examining her nomination to be appointed Commissioner of the Federal Communications Commission on February 9, 2022 in Washington, DC.

Peter Marovich | Getty Images

Biden’s unwillingness to pivot to another candidate earlier also meant the FCC remained deadlocked for the first half of his term as president.

Still, Wu said that backing down from a qualified candidate is “not Biden’s style.”

No matter when the administration changes hands, Wu said he’s confident that net neutrality can prevail. He called the repeal of the rules under Trump’s FCC an “outlier” and believes Republicans have nothing to gain at this point in pushing for repeal.

“I think about Republicans — they don’t like Google, Facebook doing censorship — and they really don’t like their cable company doing it either,” Wu said. “There’s no constituency right now for the repeal of net neutrality.”

At the FTC, Chair Lina Khan finally moved ahead in filing the agency’s antitrust suit against Amazon, accusing it of illegally maintaining a monopoly by punishing sellers that offer lower prices elsewhere and “effectively” requiring them to use Amazon’s fulfillment services. Amazon’s general counsel has called the suit “wrong on the facts and the law.”

Federal Trade Commission Chair Lina Khan testifies before a House Judiciary Committee hearing on Oversight of the Federal Trade Commission, on Capitol Hill in Washington, D.C., July 13, 2023.

Kevin Wurm | Reuters

“This complaint focused on behaviors that courts have in the past found clearly to be violations of the antitrust laws,” Bill Baer, who has served as the top antitrust official at both the FTC and DOJ in different Democratic administrations, said. “She didn’t need to include theories where the courts either haven’t reached or about which they’ve been more skeptical in the past.”

Wu said the more narrow approach didn’t surprise him, in part because Khan is “more restrained than people think she is.”

“Frankly, it’s not exotic at all,” Wu said of the Amazon complaint. “It’s plain vanilla, Main Street, what we would call a consumer welfare case.”

While Khan and Jonathan Kanter, her counterpart at the DOJ, have said they aim to bring cases that they can win, they have indicated they’re also willing to bring riskier complaints to push the boundaries of the law.

“They’re adopting more of a baseball approach than a perfectionist approach,” Wu said. “And if you have someone who’s batting .500, .700, that’s a pretty good hitter, especially if they’re swinging for home runs.”

“It is a critical moment in the courts deciding how the antitrust laws apply to Big Tech,” Baer said. “The results of these pending and future cases will tell us a lot about what the rules of the road are going forward.”

Advocates of reforming antitrust laws have said that it’s important for Congress to clarify the law, but antitrust reform has stalled in Congress after a major push last year fizzled out.

Wu said a key “uncompleted part” of the grand master plan in the White House was appointing more antitrust enforcement-minded judges.

In 10 years, Garden-Monheit said she thinks Americans will look back at this moment “as a real inflection point” where the president opted to turn the page on “40 years of laissez-faire, trickle-down economics, lax enforcement of antitrust laws.”

“I hope that’s the direction that we’ll continue to see for decades going forward, just like we’ve turned the page on decades of past failed approach,” Garden-Monheit said.

“Win or lose, we don’t know what will happen in any of these cases,” Wu said. “But I think we’ll look back at this and say that non-enforcement was just a blip.”

WATCH: FTC files lawsuit against Amazon. Here’s how to play the stock

FTC files lawsuit against Amazon. Here's how to play the stock

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Microsoft stock sinks on report AI product sales are missing growth goals

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Microsoft stock sinks on report AI product sales are missing growth goals

Microsoft: Have not lowered sales quotas or targets for salespeople

Microsoft pushed back on a report Wednesday that the company lowered growth targets for artificial intelligence software sales after many of its salespeople missed those goals in the last fiscal year.

The company’s stock sank more than 2% on The Information report.

A Microsoft spokesperson said the company has not lowered sales quotas or targets for its salespeople.

The sales lag occurred for Microsoft’s Foundry product, an Azure enterprise platform where companies can build and manage AI agents, according to The Information, which cited two salespeople in Azure’s cloud unit.

AI agents can carry out a series of actions for a user or organization autonomously.

Less than a fifth of salespeople in one U.S. Azure unit met the Foundry sales growth target of 50%, according to The Information.

In another unit, the quota was set to double Foundry sales, The Information reported. The quota was dropped to 50% after most salespeople didn’t meet it.

In a statement, the company said the news outlet inaccurately combined the concepts of growth and quotas.

Read more CNBC tech news

“Aggregate sales quotas for AI products have not been lowered, as we informed them prior to publication,” a Microsoft Spokesperson said.

The AI boom has presented opportunities for businesses to add efficiencies and streamline tasks, with the companies that build these agents touting the power of the tools to take on work and allow workers to do more.

OpenAI, Google, Anthropic, Salesforce, Amazon and others all have their own tools to create and manage these AI assistants.

But the adoption of these tools by traditional businesses hasn’t seen the same surge as other parts of the AI ecosystem.

The Information noted AI adoption struggles at private equity firm Carlyle last year, in which the tools wouldn’t reliably connect data from other places. The company later reduced how much it spent on the tools.

Read the full story from The Information here.

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Waymo expanding to Baltimore, Pittsburgh and St. Louis with manual test drives

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Waymo expanding to Baltimore, Pittsburgh and St. Louis with manual test drives

Waymo partners with Uber to bring robotaxi service to Atlanta and Austin.

Uber Technologies Inc.

Waymo on Wednesday said humans will begin test driving the Alphabet-owned company’s robotaxi vehicles in Baltimore, Pittsburgh and St. Louis.

The three cities represent the latest additions to Waymo’s quickly growing list of cities where the Google sister company is either operating its robotaxis, planning to launch service or starting to test its vehicles. That list now stands at 26 markets.

Waymo will begin manual drives in the trio of new cities this week with hopes to eventually begin serving fully-autonomous rides there, spokesperson Ethan Teicher told CNBC.

Over the past month, Waymo has been aggressively making announcements for new markets and developments at the Google sister company. This comes as tech rivals Amazon and Tesla made advancements in the robotaxi market in 2025. Amazon’s Zoox began offering free rides in Las Vegas and San Francisco, and Tesla this year launched ride-hailing service with human supervisors in the Austin and San Francisco markets.

In November, Waymo announced that it will soon begin manually driving in Minneapolis, Tampa and New Orleans. The company also added Houston, San Antonio and Orlando to its list of cities where it’ll launch service in 2026. Waymo also began offering rides on freeways in the San Francisco, Los Angeles and Phoenix markets, and it named a new finance chief.

With more than 250,000 weekly paid trips, Waymo’s robotaxi service currently operates in Austin, the San Francisco Bay Area, Phoenix, Atlanta and Los Angeles markets. The company in May said it had provided more than 10 million paid rides since launching in 2020.

The new cities further signal that Waymo is increasingly confident its service can work well in locations with colder weather conditions.

WATCH: Waymo launches paid robotaxi rides on freeways

Watch: Waymo launches paid robotaxi rides on freeways

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Security startup Verkada hits $5.8 billion valuation in latest funding round led by CapitalG

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Security startup Verkada hits .8 billion valuation in latest funding round led by CapitalG

Filip Kaliszan, CEO of Verkada.

Courtesy: Verkada

Security technology startup Verkada has reached a $5.8 billion valuation after a new funding round led by CapitalG, Alphabet’s venture capital arm, announced Wednesday.

“I think Google saw the opportunity with us in the application of AI and everything we’re driving to apply AI to the physical security industry,” CEO Filip Kaliszan told CNBC’s Deirdre Bosa.

The company said in a release that the investment will be used to bolster its artificial intelligence capabilities and provide liquidity.

The financing totaled $100 million, a person familiar with the terms of the round told CNBC, raising the company’s valuation by $1.3 billion from its Series E funding in February. The person asked not to be named in order to discuss details of the funding.

CapitalG also recently contributed to a $435 million fundraise for cybersecurity startup Armis in November.

The new funding comes as Verkada surpasses $1 billion in annualized bookings across 30,000 customers globally.

The company develops physical security products, including cameras, alarms and sensors, that are connected under a single cloud-based software platform.

Kaliszan said his company serves a broad span of businesses, such as retailers, government properties, schools, and transportation.

For example, TeraWatt Infrastructure, which supplies charging sites to electric vehicles like Google’s Waymo, uses Verkada technology to protect EV facilities.

In September, the company rolled out over 60 new AI features and platform updates, including tools like “AI-Powered Unified Timeline.”

Read more CNBC tech news

The tool can automatically synthesize videos and images from several cameras into a single visual timeline, rather than requiring security teams to dig through multiple videos during an investigation.

“The genius of Filip and the team of Verkada is that they’re leveraging AI as a Rosetta Stone to really help unlock insights from cameras to help companies become safer and more efficient,” CapitalG general partner Derek Zanutto told Bosa.

By capturing over 20 million images per hour, Verkada can provide notable data like foot traffic, occupancy rates, security violations and other trends, Zanutto said.

He added that the physical security is a sleeping $60 billion market that is led by legacy hardware like “cameras that just record, not cameras that think” — a gap that Verkada is hoping to fill.

However, AI-powered technology will not necessarily replace human security guards any time soon.

“I think humans will be providing security to other humans for as long as I can think,” Kaliszan said. “But AI can empower these first responders to be more aware, to have situational knowledge, to know what to do, and in some cases, actually prevent the problems from happening.”

He pointed to the Louvre heist in October, where multiple crown jewels were robbed from the museum, as an opportunity where AI-assisted devices that could actively monitor, then immediately alert security forces, would be more effective than only physical personnel.

“If you could intervene right then, if you could know in real time that that’s happening, the potential for savings and preventing damage is tremendous,” he said.

xAI raises $15B in series E round

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