OpenAI and Microsoft use AI products, “integrated into every industry,” to collect, store, track, share and disclose the private information of millions of users, alleged a privacy class action Wednesday (docket 3:23-cv-03199) in U.S. District Court for Northern California in San Francisco. The 16 plaintiffs are listed by their initials “to avoid intrusive scrutiny,” plus any “potentially dangerous backlash,” said the complaint.
Amazon for years “has knowingly duped” millions of consumers into “unknowingly enrolling” in Amazon Prime, in violation of the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), alleged the FTC in a partially redacted fraud complaint Wednesday (docket 2:23-cv-00932) in U.S. District Court for Western Washington in Seattle. Amazon used “manipulative, coercive, or deceptive user-interface designs” called “dark patterns” to trick consumers into enrolling in automatically renewing Prime subscriptions, it said.
The FTC filed suit Monday to block Microsoft’s Activision Blizzard buy, seeking both a temporary restraining order and a preliminary injunction to enjoin Microsoft from consummating the transaction. The redacted complaint (docket 3:23-cv-02880) in U.S. District Court for Northern California in San Francisco said both remedies were necessary because Microsoft and Activision have “represented” that they may consummate the deal “at any time without any further notice” to the FTC.
VoIP service provider Avid Telecom “chose profit over running a business that conforms to state and federal law” by “assisting and facilitating” illegal robocall traffic on its network, alleged 48 states and the District of Columbia in a complaint Tuesday (docket 4:23-cv-00233) in U.S. District Court for Arizona in Tucson.
The U.S. Supreme Court on Thursday declined to address the application of Section 230 in two terrorist-related cases, saying lawsuits against Google and Twitter failed to state “plausible” claims. Tech groups lauded victories in Gonzalez v. Google (21-1333) and Twitter v. Taamneh (21-1496) (see 2304040064). In an unsigned opinion, the high court found that “much (if not all)” of the Gonzalez complaint “seems to fail under either our decision in Twitter or the Ninth Circuit’s unchallenged holdings below.” The court found Twitter didn’t aid and abet the terror attack at issue in Taamneh. In Gonzalez, the court declined to “address the application of §230 to a complaint that appears to state little, if any, plausible claim for relief. Instead, we vacate the judgment below and remand the case for the Ninth Circuit to consider plaintiffs’ complaint in light of our decision in Twitter.”
The 6th U.S. Circuit Court of Appeals denied Consumers' Research's challenge of the FCC's USF 2021 Q4 contribution factor, in an opinion published Thursday in case 21-3886. A three-judge panel heard oral argument in March and is the second court to deny a challenge from the group (see 2303240049). "Congress provided the FCC with a detailed statutory framework regarding universal service," wrote Judge Karen Nelson Moore, saying Section 254 of the Communications Act "does not violate the nondelegation doctrine." The opinion also cited the Universal Service Administrative Co.'s "subordination to the FCC and its assistance with fact gathering and ministerial support" wasn't a "private-nondelegation doctrine violation." Competitive Carriers Association, NTCA and USTelecom welcomed the ruling in a joint statement: "We believe that other courts considering similar challenges should come to the same conclusion.” Consumers' Research didn't comment.
U.S. District Judge Leonie Brinkema for the Eastern District of Virginia denied, without an opinion, Google’s motion to dismiss the antitrust complaint brought by DOJ and eight states to thwart the company’s alleged monopoly control over the digital advertising market, said her signed order Friday.
The U.S. Appeals Court for the D.C. Circuit, in a Thursday opinion, affirmed the district court’s dismissal of the antitrust complaint brought against Meta by 47 states, plus the District of Columbia and Guam. The states had alleged that Meta’s Instagram and WhatsApp acquisitions harmed competition, as did Meta’s restrictions on app developers that linked to Facebook.
The 9th U.S. Circuit Court of Appeals, in an opinion Monday (docket 21-16506), affirmed in part and reversed in part the district court’s judgment against Epic Games on its Sherman Act claims for restraint of trade, tying and monopoly maintenance against Apple. The panel ruled in Epic’s favor on its claim under California’s Unfair Competition Law, but against Epic on Apple’s claim for breach of contract; and against Apple on its claim for attorney fees.
The U.S. Court of Appeals for the D.C. Circuit denied the petition for writ of mandamus from Standard General, Cox Media Group and Tegna in an unpublished order Friday morning in docket 23-1084. The ruling by Judges Cornelia Pillard, Michelle Childs and Florence Pan contains few details. "Petitioners have not demonstrated that respondent has unreasonably delayed in acting on their applications," said the ruling. "Nor have they shown that respondent has a 'crystal clear' duty to rule on their applications without resort to a hearing." The ruling means the FCC’s proceeding will continue and will almost certainly extend beyond the May 22 deadline at which the deal’s financing expires, potentially ending the Standard/Tegna transaction. Standard has called for the FCC’s commissioners to force a vote on the transaction, but that is widely seen as unlikely to happen. Standard General and the FCC didn’t immediately comment.