Tech quiet on Trump’s EU barb Presented by Ericsson

With help from John Hendel and Steven Overly

TECH QUIET ON TRUMP’S EU BARB — President Donald Trump has come to the defense of Google — well, sort of. Trump tweeted early Thursday that the European Union had “taken advantage of the U.S.” by slapping a $5 billion fine on one of its “great companies,” warning, “but not for long!” The remarks came a day after the European Commission imposed a record antitrust penalty on Google as it ramps up enforcement efforts. But Trump’s comments drew a muted response from the U.S. tech industry. Google didn’t respond to a request for comment on Trump’s comment, and three trade groups representing the tech giant — the Information Technology Industry Council, the Internet Association and NetChoice — had no comment.

— A defense of Google, or an attack on Europe? Tech industry observers told MT the president’s remarks appeared to be more about his ongoing trade dispute with Europe than about taking a stand against antitrust efforts to crack down on Google. “This doesn’t mean he has any particular fondness for Google or fondness for antitrust,” said TechFreedom President Berin Szóka. “This just fits his preconceived notion that Europe is our enemy.” John Simpson, director of the Privacy Project at Consumer Watchdog, said “Trump is using the Google case to fan the fires of a completely unnecessary trade war with Europe.”

— A dash of irony: Trump’s tweet had an America First feel to it, but the situation isn’t quite so simple. “Many of the companies raising antitrust concerns against Google in Europe are also U.S. companies,” noted Simpson. Indeed, it was FairSearch, a lobby group supported at the time by Microsoft, that filed the complaint with the European Commission accusing Google’s Android of anti-competitive practices back in April 2013. And who was first lady Melania Trump meeting with just hours after Trump bashed the EU’s decision? You guessed it: Microsoft.

— All eyes on the FTC and DOJ: While Trump clearly sided with Google, it’s not clear how his top antitrust enforcement agencies — the Justice Department and the FTC — will come down on the matter. FTC Chairman Joe Simons said earlier this week that he plans to "look closely at what the EU is doing,” while cautioning that any U.S. enforcement approach is likely to look different from that of the EU. And a DOJ antitrust division spokesperson said they “look forward to analyzing the Commission’s decision carefully when it becomes available.”

— Meanwhile, on the Hill: Lawmaker reaction to the EU’s fine continues to trickle in. “The EC’s attack on Google is another strike against its credibility as a regulator,” Sen. Ron Wyden (D-Oregon), a staunch tech industry supporter, said in a statement. And Rep. Zoe Lofgren (D-Calif.), who represents part of Silicon Valley, offered a particularly pointed non-response. “Since this matter is under appeal, I’m going to withhold commenting on the proposed five billion dollar transfer of wealth from California to Europe,” she said in an email.

GOOD MORNING AND WELCOME TO MORNING TECH, where your host cannot believe he is actually hoping perennial ball-stopper Carmelo Anthony joins his Miami Heat. Got any tech or telecom tips? Drop me a line at [email protected] or @viaCristiano. Don’t forget to follow us @MorningTech. And catch the rest of the team’s contact info after Quick Downloads.

Catch all the highlights from Tuesday's Pro Summit. Video clips, event content and more are now available from a full day of incisive policy conversations. View Summit Highlights.

View the latest POLITICO/AARP poll to better understand Arizona voters over 50, a voting bloc poised to shape the midterm election outcome. Get up to speed on priority issues for Hispanic voters age 50+, who will help determine whether Arizona turns blue or stays red.

What role will Hispanic voters over 50 play in Arizona this fall? Read POLITICO Magazine's new series "The Deciders" which focuses on this powerful voting bloc that could be the determining factor in turning Arizona blue.

MERGE MADNESS — It has been a pivotal week for telecom mergers and acquisitions. Here’s a rundown of where we stand on a series of blockbuster deals:

— Sky’s the limit for Comcast? Comcast brought an end to its bidding war with Disney for the bulk of 21st Century Fox assets, with the company announcing it will instead focus its effort to acquire British media-telecom firm Sky. But will that take Disney out of the running for Sky? As The Wall Street Journal points out, “The rational move would be for Disney to leave Sky to Comcast, lowering the risk of its purchase of the other Fox assets and quieting the loser with a consolation prize. In a drama of outsize media egos, however, reason may not prevail.” But with the BCC now reporting that Comcast is “likely” to become the new owner of Sky, the high-stakes bidding war between the companies may soon be coming to a close.

— Sinclair-Tribune on life support: Tribune Media said Thursday, after the FCC voted to send its proposed merger with Sinclair Broadcast Group to a likely death, that it’s evaluating the implications and assessing its options. "We will be greatly disappointed if the transaction cannot be completed, but will rededicate our efforts to running our businesses and optimizing assets,” the company said. The merger agreement says either party may kill the deal if it's not completed by Aug. 8, John reports for Pro — and the prospects now appear grim.

— Sinclair's last stand: "Sinclair Broadcast Group's top lawyer made a last-ditch effort to salvage his company's $3.9 billion deal for Tribune Media, including via a phone call with FCC Chairman Ajit Pai, according to a disclosure filing posted tonight,” John reports for Pro. “Sinclair General Counsel Barry Faber emailed [Pai] Tuesday afternoon, writing ‘you appear to have been unwilling to discuss this matter for the past several months.’ A call would be ‘appropriate and hopefully useful,’ Faber said. Emails confirm they spoke Tuesday night.”

— Merger critics urge Tribune to stand down: In a letter sent to Tribune Media’s board of directors, a group of public interest and advocacy group leaders urged the company to pack up shop. "We believe that the only reasonable and prudent action under your fiduciary duty as Tribune directors is to abandon the proposed sale to Sinclair Broadcast Group and focus entirely on the responsible management of your company,” wrote the group, which included Public Knowledge President Gene Kimmelman, former FCC official and Georgetown Law fellow Gigi Sohn, Institute for Public Representation Counselor Andrew Schwartzman and Sports Fans Coalition Executive Director Brian Hess.

— Sinclair rivals, rejoice! “After the Federal Communications Commission’s likely death blow to Sinclair Broadcasting Group’s $3.9 billion proposed merger with Tribune Media, there is at least one group of clear winners: rival conservative TV news outlets,” POLITICO’s Jason Schwartz reports. That would be Newsmax and Fox News.

— Federal court moves to hasten AT&T appeal: The D.C. Circuit Court approved an expedited timeline for written arguments to be filed in the government’s appeal of AT&T’s merger with Time Warner, Steven reports for Pro. Under a request from the DOJ, briefs in the case will be due by Oct. 18, with the dates for oral arguments and a decision on which judges will be assigned to the case to be set at a later date.

A message from Ericsson: 5G will accelerate innovation and provide transformative use cases across multiple global sectors. It will also bring new security challenges with broader attack surfaces, more devices and increased traffic loads. We must have networks that are trustworthy, resilient, and secure by design – all on day one. Learn more.

CONTRACTING BLOWBACK CONTINUES — The Refugee and Immigrant Center for Education and Legal Services, a Texas nonprofit group that aids migrants, has spurned a $250,000 donation from Salesforce — one of a number of tech companies facing blowback over contracts with the U.S. government. "Pledging us a small portion of the money you make from CBP contracts will not distract us from your continuing support of this agency," Jonathan Ryan, the group’s executive director, wrote to Salesforce in an email obtained by POLITICO.

— Protests on the horizon: According to Fight for the Future representative Evan Greer, a series of petitions from advocacy groups like Color of Change, Free Press, the Center for Media Justice and others calling on tech companies to end their government contracts now have over 250,000 signatures. And on July 26 the groups are planning to deliver those signed petitions and protest outside Salesforce headquarters in San Francisco as well as corporate offices for Microsoft, another company whose contracting has come under scrutiny.

PLEDGE SEASON — At an event touting the White House’s new "Pledge to America's Workers” initiative, companies vowed to offer apprenticeships and skills training to a total of 3.8 million American students and workers over the next five years. Of the tech and telecom companies in attendance, IBM pledged 100,000 opportunities, the Internet Association pledged 30,000, Foxconn pledged 13,000 and Microsoft pledged 10,000, according to a press pool report. “As an organization long focused on building America’s tech workforce, we welcome the Administration’s pledge to improve training and skills development throughout a worker’s career,” said Elizabeth Hyman, CompTIA’s executive vice president for public advocacy.

BILLS, BILLS, BILLS — Republican FCC Commissioner Mike O’Rielly on Thursday lauded two newly introduced House bills: The FCC Transparency Act from Rep. Adam Kinzinger (R-Ill.), H.R. 6422 (115), which would codify FCC Chairman Ajit Pai’s practice of releasing the text of agency meeting items three weeks in advance; and the bipartisan 911 Fee Integrity Act, H.R. 6424 (115), aimed at stopping states from diverting money intended for 911 service for other purposes. The office of the latter bill’s sponsor, Rep. Chris Collins (R-N.Y.), cited the 911 fee diversion practices in New York as an impetus for the legislation.

AMAZON DROPS BROWNSTEIN — Amazon is parting ways with the lobbying heavyweight Brownstein Hyatt Farber Schreck after a year and a half. The firm registered last January to lobby the Trump administration on a broad swath of issues for Amazon, including transportation, trade and telecommunications, records show. Since then, its work has included “trucking efficiency issues” and Transportation Department appropriations, as well as antitrust and competition matters. Amazon spent a record sum of $12.8 million on lobbying in Washington last year, a dramatic increase over recent years as its lines of business continue to expand. And Brownstein’s termination won’t exactly leave Amazon short on lobbyists: The company retained a roster of more than 15 outside firms in the first quarter of the year.

SILICON VALLEY MUST READS

— Oops: Radio Free Europe/Radio Liberty may have violated laws intended to shield Americans from from domestic propaganda by using Facebook to target ads at U.S. citizens, The New York Times reports.

— ‘A dog’s breakfast of media leftovers’: Vanity Fair breaks down the new era in media ownership after a summer of merger mania.

— ‘Wow’: Facebook CEO Mark Zuckerberg called to congratulate President-elect Trump following his electoral victory, a conversation that offered the company insights into his thinking, BuzzFeed News reports.

QUICK DOWNLOADS

— EU do you: The EU’s fine against Google shows the transatlantic rift on tech enforcement is widening, POLITICO Europe’s Mark Scott reports.

— A nein-starter: A German official said Facebook’s practice of allowing Holocaust deniers to post on the platform won’t fly in the country, POLITICO Europe’s Janosch Delcker reports.

— Why my mom’s not getting an Alexa for Christmas: Smart speaker products are still grappling with comprehending people with accents, the Washington Post reports.

Tips, comments, suggestions? Send them along via email to our team: Eric Engleman ([email protected], @ericengleman), Kyle Daly ([email protected], @dalykyle), Nancy Scola ([email protected], @nancyscola), Margaret Harding McGill ([email protected], @margarethmcgill), Ashley Gold ([email protected], @ashleyrgold), Steven Overly ([email protected], @stevenoverly), John Hendel ([email protected], @JohnHendel) and Cristiano Lima ([email protected], @viaCristiano).

Follow us on Twitter Heidi Vogt @HeidiVogt



Alexandra S. Levine @ali_lev



John Hendel @johnhendel



Cristiano Lima @viacristiano



Leah Nylen @leah_nylen



Steven Overly @stevenoverly



Nancy Scola @nancyscola