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US investigates escort and massage sites over human trafficking
Backpage is no more, but US authorities are still determined to crack down on sites that enable human trafficking and other crimes. Wall Street Journal sources say Homeland Security, the Justice Department and others are reportedly investigating escort and massage sites Eros.com, EroticMonkey.ch and Rubmaps.ch to see if they've either participated in or knowingly facilitated trafficking, prostitution and money laundering. All three are dominating in the US in the wake of Backpage's closure, and both Eros and Rubmaps have turned up as evidence in multiple sex trafficking cases.
Google acknowledges DOJ scrutiny as part of competition review
Google has confirmed that it's one of the targets of the Justice Department's review of competition in tech. The search firm has revealed that DOJ officials asked it to provide information about "past investigations," with an SEC filing also referencing the request. It expected state attorneys general to make similar demands in the future, and planned to work "constructively" with regulators.
DOJ launches probe of automakers that agreed to California emissions rules
The US Department of Justice (DOJ) has launched an antitrust investigation into BMW, Ford, Honda and Volkswagen, the four automakers that came to a voluntary agreement with California to follow stricter fuel efficiency standards. After The Wall Street Journal broke the news, Ford and Honda confirmed they plan to cooperate with the investigation.
DOJ is working with states on antitrust investigations of tech companies
The Justice Department's antitrust leader doesn't see big tech as inherently bad, but he's still content to investigate potential wrongdoing. Division chief Makan Delrahim told guests at a Colorado tech policy conference that the DOJ was working with state attorneys general on investigations of the market influence of tech companies. He added that he didn't think the laws had to change "at this time" to pursue any possible cases, arguing that current laws were "quite flexible" and allowed "timely and aggressive enforcement."
Man charged with bribing AT&T staff to illegally unlock phones
There's no question that there's a market for unlocked phones, but one man may have been too eager to profit from that demand. The US has charged Pakistani citizen Muhammad Fahd with bribing staff at AT&T's call center in Bothell, Washington to disable the carrier's locking software and illegally unlock phones before they're eligible. Fahd reportedly had workers insert malware and "otherwise misuse" AT&T's networks between 2012 and 2017, paying one insider $428,500 over the five-year period and even having some bribes delivered in person.
Justice Department has approved T-Mobile / Sprint merger
Sprint and T-Mobile have cleared a significant hurdle towards completing their merger. The Department of Justice rubber-stamped the deal on the condition that the carriers sell some parts of the business to Dish Network.
DOJ could approve T-Mobile and Sprint merger tomorrow
T-Mobile and Sprint are still grappling with state lawsuits attempting to block their merger, but they can at least take some consolation from the federal government. CNBC sources claim that the Department of Justice is expected to approve the merger on July 25th (that's tomorrow, if you're reading in time). The union is contingent on T-Mobile selling assets to Dish, though. Reportedly, Dish will buy T-Mobile's prepaid phone business for $1.4 billion, and spend another to snap up $3.6 billion in wireless spectrum. You can likely say goodbye to a T-Mobile-owned Metro, then.
Justice Department launches sweeping review of competition in tech
The US is intensifying its already stepped-up scrutiny of the tech industry. The Department of Justice is launching a comprehensive antitrust review of "market-leading online platforms" to see if they're abusing their leading positions. There's no definite goal beyond determining whether or not there are any anti-competitive practices. The review will focus on internet platforms involving search, shopping and social networking, however.
Microsoft will pay $25 million to settle Hungary bribery charges
Microsoft is on the hook at home for alleged crimes abroad. The company has agreed to pay about $25 million in settlements with both the Justice Department and SEC over charges that its Hungary subsidiary violated the Foreign Corrupt Practices Act. The division allegedly discounted prices for its resellers and distributors between 2013 and 2015, using the increased profit margins to fund bribes for government officials and clinch lucrative software deals with Microsoft.
Bloomberg: Dish is close to a $6 billion deal with Sprint and T-Mobile
Over the last couple of weeks, we've heard that getting DoJ approval for T-Mobile's proposed $26 billion purchase of Sprint will require making moves to create a new national wireless carrier as a competitor. That could be achieved by selling off Boost Mobile and enough spectrum to make a service viable, however they needed to find a buyer. Now Bloomberg reports that Dish Network is in talks and could announce this week that it will be the company to do it, rather than possibles like Altice and Charter (Amazon wasn't mentioned). The price? Apparently about $6 billion. The pair promised the FCC they would sell Boost Mobile, and if talks don't fall through, then their hope is that this would help get approval and overcome a lawsuit filed by several state AGs. For its part, Dish has long harbored wireless ambitions, and acted to make them come true. It was even proposed as a buyer for divested T-Mobile assets during merger talks with AT&T back in 2011. We'll see if it happens this time or if things fall apart on the 1-yard line all over again.
US regulators carve up oversight of Amazon and Google
If there weren't already signs that American regulators expect to crack down on tech giants, there are now. Washington Post sources said that the Department of Justice and the Federal Trade Commission have carved out their competitive oversight of Amazon and Google, with the DOJ gaining "more jurisdiction" over Google and the FTC watching over Jeff Bezos' outfit. It wasn't certain just what the agencies intended, although recent rumors had the DOJ prepping an antitrust probe for Google. These kinds of jurisdictional moves are frequently precedents to regulatory action.
WSJ: Justice Department 'preparing' Google antitrust investigation
Late Friday, the Wall Street Journal and Washington Post reported, based on it anonymous sources, that the Department of Justice is preparing an antitrust probe of Google. The company has faced several similar inquiries from EU officials with billions in fines as a result, and in one case it caused Google to separate Chrome and Search from Android in the region. There was also a major 2011 investigation in the US from the FTC -- that concluded in a settlement where the company promised to change its policies -- but this may be the first time the DoJ takes the lead. There aren't many details about what may be scrutinized, beyond search and other businesses. Late last year DoJ antitrust head Makan Delrahim said there needs to be "credible evidence" of anticompetitive practices before his department issues corrective measures. What's particularly notable now, however is that it comes amid growing calls from politicians like Senator Elizabeth Warren to break up big tech companies. We don't know if that could be on the table for giants like Google and Facebook (which is still in the middle of its own negotiations with the FTC), but this is only the beginning. Both the DoJ and Google have not commented publicly on the reports.
International effort busts $100 million malware crime network
The US, five other countries and Europol have dismantled an elaborate cybercrime ring that relied on one piece of malware to pull off heists. Officials have charged 10 people across five countries with using GozNym malware to grab banking login credentials in a bid to steal about $100 million from over 41,000 target computers, most of them linked to US businesses and their associated banks. It's not certain how much money the team obtained.
T-Mobile and Sprint push merger deadline to July 29th
T-Mobile and Sprint have pushed back the deadline to complete their $26 billion merger, reports Reuters. The companies will now have until July 29th to earn the approval of the US Justice Department and the Federal Communications Commission.
Ford under criminal investigation for miscalculating vehicle emissions
Ford disclosed in a financial filing made with the United States Securities and Exchange Commission that it is currently under investigation by the Department of Justice over its internal testing practices. Ford says the probe is still in its preliminary stages but insists that this won't be another Volkswagen style "Dieselgate" scandal. According to the carmaker, the issue stems from miscalculations made during the testing process rather than an intentional attempt to deceive regulators.
T-Mobile and Sprint merger is 'unlikely' without major changes
So much for T-Mobile and Sprint enjoying a smooth merger. Wall Street Journal sources say the Department of Justice has told the carriers that their $26 billion union is "unlikely" to receive approval under its current structure. While the particular objections aren't available, DOJ offcials reportedly questioned claims that the merger would create "important efficiencies."
DEA never checked if its bulk surveillance data was legal
If you thought the DEA's mass surveillance was irresponsible, you're not the only one. The Justice Department's Inspector General has released a report showing that the DEA "failed to conduct a comprehensive legal analysis" of three bulk data gathering programs to verify they were above board. On top of this, the policies to govern data use were either vague or non-existent, opening up the potential for abuse.
Concentrates are the future of cannabis
The cannabis industry is in the midst of an unprecedented renaissance. Strains are stronger, consumption methods more numerous and availability greater than ever before. Medical-grade marijuana now averages around 20 percent THC -- a threefold increase from the "hippie weed" your parents toked back in the '60s. Smoking has been usurped by vaping and edibles as the preferred dosing methods, making the concentrates and oils more valuable commodities than the flowers they're derived from. The good times certainly are rolling, but how long can we keep up this relentless march toward pure THC distillate?
Justice Department sued for old computers slowing FOIA requests
A researcher who specializes in the Freedom of Information Act (FOIA) is suing the Justice Department for using really, really old computers to fulfil requests for information.
DoJ shells out $23 million for the President's body camera pilot program
The Department of Justice announced last May that it would fund a national pilot program for law enforcement body cameras, a plan first put forth by President Obama. On Monday, the DoJ made good on that promise by awarding $23 million in grants to 32 states for the purchase of these devices. Of that total, $19.3 million will go towards actually purchasing the necessary 50,000 cameras, another $2 million is earmarked for training and the remaining $1.9 million will be used to conduct impact studies in Miami, Milwaukee and Phoenix.
