Jul 25, 2017

New threat to tech giants: Bannon, Democrats

Patrick Semansky / AP

Congressional Democrats have decided that bashing big business is their path back to power, with a new populist message that borrows heavily from both Donald Trump and Teddy Roosevelt.

  • The "A Better Deal" plan released Monday is aimed at eliminating corporate monopolies, whether created organically or via large mergers. It claims that such concentration of economic power is a net negative for employment, competition, and consumer choice. The bigger the badder.
  • This might be an area where Democrats and the Bannon wing of Trump's WH see eye-to-eye, and stand in opposition to GOP orthodoxy. If that sort of alliance were to form, it could send shivers from Wall Street to Silicon Valley.
  • What Democrats want: A complete shakeup of antitrust enforcement, which currently seeks to discover if a proposed merger would result in less competition and harm consumers.

Democrats now want the Federal Trade Commission and other regulators to presume that large mergers are de facto anti-competitive, and that it is incumbent on the applicants to prove otherwise. They also want regulators to keep an eye on already-merged companies, in order to ensure compliance with terms of approval, and to create a new "consumer competition advocate" that would field complaints about, and investigate, potentially exploitative practices.How we got here: Progressives forces for years have pushed for more antitrust enforcement, and it's slowly gained traction within the Democratic Party. Last year, for example, there was an antitrust enforcement plank in the Party platform. "The process is not as quick as it looks," says Matt Stoller, a critic of corporate consolidation and a fellow with the New America Foundation. "It's just this is the moment where the Democrats have placed concentration at the center of their agenda, but they've been learning about it for a while."Democrats explicitly identified five industries: Cable/telecom (read: AT&T buying Time Warner), airlines, beer, food and eyeglasses. But Sen. Cory Booker (D-NJ) also threw Silicon Valley tech companies into the mix, suggesting to Recode (before the official rollout of the new agenda) that regulators should "take a look at Google."Worth noting: A fact sheet on the new antitrust platform says that in "an increasingly data-driven society, merger standards must explicitly consider the ways in which control of consumer data can be used to stifle competition or jeopardize consumer privacy." Internet firms weren't mentioned by name, as was the case with companies in other industries Democrats are focused on. But it's still a statement that raises questions for the Silicon Valley giants.On the other hand: Sen. Brian Schatz (D-HI) tells Axios that while he believes America needs to revisit its understanding of monopolies, he isn't yet ready to castigate particular industries: "I don't think we should target any sector, but I don't think we should hold harmless any sector either."Tentative smiles: A tougher regulatory line for corporate mergers could be a small ray of sunshine for private equity firms, which are typically at a disadvantage to corporate buyers. On the other hand, it could make exiting investments more difficult.What's next? Likely nothing too substantive in the short-term, particularly given that Democrats are not in a great position to insist on hearings or oversight investigations. But the AT&T-Time Warner deal could prove a political flashpoint. If regulators let it go through, then Democrats can use it as a potent campaign prop, given that cable companies and Internet service providers are barely more popular than Congress itself. If they block it — a move favored by then-candidate Trump — then it could help give the "Better Deal" platform more pragmatic validity.

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World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Countries where novel coronavirus cases are falling may be hit with a "second peak" if they relax restrictions too soon, World Health Organization emergencies chief Mike Ryan warned during a briefing Monday. "We're still very much in a phase where the disease is actually on the way up," he added.

By the numbers: Almost 5.5 million people have tested positive for the virus as of Monday, and more than 2.2 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 14.6 million tests). The U.K. is reporting over 36,900 deaths from the coronavirus — the most fatalities outside the U.S.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 5,498,849 — Total deaths: 346,306 — Total recoveries — 2,233,180Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 1,662,768 — Total deaths: 98,223 — Total recoveries: 379,157 — Total tested: 14,604,942Map.
  3. World: Italy reports lowest number of new cases since February — Ireland reports no new coronavirus deaths on Monday for the first time since March 21 — WHO suspends trial of hydroxychloroquine over safety concerns.
  4. 2020: Trump threatens to move Republican convention from North Carolina — Joe Biden makes first public appearance in two months.
  5. Public health: Officials are urging Americans to wear masks over Memorial Day.
  6. Economy: New York stock exchange to reopen its floor on Tuesday — White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Charities refocus their efforts to fill gaps left by government.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 55 mins ago - Politics & Policy

LATAM Airlines files for U.S. chapter 11 bankruptcy

A LATAM air attendant aboard one of the company's planes in March. Photo: Kike Calvo/Universal Images Group via Getty Images

LATAM Airlines Group SA said in a statement early Tuesday the firm and its affiliates in in the United States, Chile, Peru, Colombia and Ecuador have filed for Chapter 11 bankruptcy protection in the U.S.

Why it matters: Latam is Latin America's largest airline and its shareholders include Delta Air Lines. CEO Roberto Alvo noted in the statement the coronavirus pandemic has had a huge impact on the airline industry.