MobiTV has $19 million in assets and $75 million in liabilities, said the privately held streaming video provider in Chapter 11 papers (in Pacer) filed Monday in U.S. Bankruptcy Court in Wilmington, Delaware (docket 21-10457). The company incurred a $34 million operating loss for 2020 on revenue of $13.5 million. It generates revenue through “transportation rights” contracts with more than 120 pay-TV providers to deliver streaming content to 300,000 “end-user subscribers,” it said. T-Mobile, a key benefactor, agreed Jan. 29 to give MobiTV $2.5 million in “bridge financing” it said. MobiTV hired FTI Consulting to find a buyer, hoping to avoid the bankruptcy, but was unsuccessful, it said. It continues to employ FTI with the goal of “reengaging parties who originally showed interest,” plus finding “new potential buyers,” it said. MobiTV’s Chapter 11 petition (in Pacer) lists web-hosting company Rackspace as its top creditor, with $4 million owed on an Oct. 9 loan. No. 2 creditor Silicon Valley Bank is owed $3.06 million for an April 21 Paycheck Protection Program loan under the Cares Act. MobiTV said the bank denied its request for loan forgiveness. MPEG LA, the third-largest creditor, is owed $2.91 million in unpaid license fees, said the petition. MobiTV’s other top creditors include streaming content partners ABC Cable Networks Group ($362,000 owed), Fox News ($350,000), A&E ($90,000), MTV ($84,000) and Discovery Communications ($83,000). MobiTV was “incurring substantial operating losses,” despite “growing revenue and increasing subscriber and customer bases,” said the court papers. Though MobiTV “projected significant and material subscriber and revenue growth” entering 2020, the pandemic “materially impaired” growth opportunities, it said. The board approved the Chapter 11 filing in late January, it said.

Business and tech industry groups sought to stop Maryland’s digital ad tax in federal court Thursday. The U.S. Chamber of Commerce, Internet Association, NetChoice and Computer and Communications Industry Association (CCIA) sued in U.S. District Court for Northern Maryland after the Assembly voted last week to override Gov. Larry Hogan’s (R) veto of the bill (see 2102120050). The Internet Tax Freedom Act preempts the Maryland law, which also violates constitutional due process and commerce clauses “by burdening and penalizing purely out-of-state conduct and interfering with foreign affairs,” industry plaintiffs said. “The Act is a punitive assault on digital, but not print, advertising. It is illegal in myriad ways and should be declared unlawful and enjoined.” Though “styled as a tax, several features confirm its punitive character, including its severity (up to 10% of gross revenues), its focus on extraterritorial conduct, the segregation of its proceeds from the State’s general fund, and the legislative history leading to its enactment,” they said. A Hogan spokesperson emailed that the suit "highlights how not only are there real policy problems with the digital ad tax, but also serious legal questions surrounding it as well." The Maryland attorney general's office didn't comment.

China Telecom countered FCC arguments that, rather than getting expedited review, the U.S. Court of Appeals for the 4th Circuit should dismiss its case against the agency revoking Communications Act Section 214 authorizations (see 2102020029). In January, the company sought expedited court review (see 2101220050). The FCC is “determined to rush to judgment and revoke [China Telecom’s] Section 214 authority and authorizations -- without an evidentiary hearing -- arbitrarily and capriciously reversing decades of agency precedent, ignoring its own rules, and denying CTA due process of law,” said a Monday filing (in Pacer) in docket 20-2365: “Respondents’ arguments to the contrary are a distraction.”

Epson America went to court for at least the second time to block an Amazon third-party seller from allegedly masquerading as an authorized retailer by accepting orders for Epson home theater projectors it can’t fulfill. Consumers expect the Epson products they order from the third-party seller, Edge AV Store, “will be fulfilled with the specific products they ordered,” said Epson’s complaint (in Pacer) Wednesday in U.S. District Court in Fort Lauderdale. Most consumers receive no products or are shipped goods other than what they ordered “in a classic bait-and-switch scheme,” it said. Shoppers who are scammed are forced to seek refunds or credits through Amazon, which isn't named as a defendant. Edge AV Store “does not actually have in its inventory, and cannot actually obtain,” the Epson products it merchandises because the goods are “restricted SKUs” available only through authorized Epson resellers, “which Edge AV Store is not,” said the complaint. The merchant also “engages in the practice of falsely inflating its positive reviews in order to increase the legitimacy of its online storefront,” said Epson. The vendor took nearly identical legal action just before Christmas against another Amazon third-party seller, Stratton AV (see 2012230025). Both complaints allege the Amazon merchants are costing Epson legitimate sales because their online activities are giving the brand a bad name. The suits seek injunctive relief, plus punitive and compensatory damages. Attempts to reach Edge AV Store and Stratton AV for comment Thursday were unsuccessful. Amazon didn’t respond to questions.

Apple “hosts and facilitates” at least 50 “social casinos” on the App Store that prey on addicted gamblers in an orchestrated “conspiracy” to reap profits at twice the rate of traditional Las Vegas casinos, alleged two self-described gaming addicts in a complaint (in Pacer) Friday in U.S. District Court in San Jose. Apple’s practices violate protections against illegal gambling in the 1970 Racketeer Influenced and Corrupt Organizations (Rico) Act, said the complaint, seeking class-action status on behalf of other recovering compulsive gamblers. Social casinos sell gamblers monetary credits they redeem for spins on virtual slot machines but don’t let them cash out as they can in a Las Vegas house, said the suit. Credits they win can be used only for additional spins on the slots, it said. Apple and the social casinos collaborate in a “mutually beneficial business partnership,” it said. In exchange for distributing the social casinos, feeding them “valuable data” about their players and collecting their money, Apple earns a 30% commission on every wager, it said. The traditional casino takes in 15% at most on every bet, it said. Apple is using its developer tools to “take advantage of users with severe gambling problems,” said the complaint. “Apple has unlawfully made billions of dollars on the backs of consumers.” It breached the Rico Act by engaging in a “pattern of racketeering activity,” including by marketing and selling “rigged and manipulated” slot games that are illegal in many states and “disguising them as innocuous video game entertainment,” it said. Apple also is injuring consumers by continuously “soliciting” the public “to play illegal slot machines,” it said. The suit seeks restitution of all gambling losses for the proposed class of consumers, plus punitive and statutory damages. Apple didn’t comment Monday.

Judge Amit Mehta of the U.S. District Court for D.C. on Thursday set status hearings for Feb. 25, March 30 and April 30 in DOJ’s antitrust case (in Pacer) against Google (see 2101080055).

Facebook said it’s too soon to merge states’ and the FTC’s antitrust lawsuits. “Facebook does not oppose reassignment to a common judge,” but “actual consolidation of these separate government cases ... is premature and unnecessary at this initial stage of the proceedings,” Facebook said (in Pacer) Monday at U.S. District Court in Washington. The FTC and 48 bipartisan attorneys general sought remedies last month, including possible divestitures of Instagram and WhatsApp (see 2012100003).

Amazon third-party seller Stratton AV is giving the Epson brand a bad name by advertising and offering for sale various Epson products through its Hatchfields Co. online store, which lacks Epson inventory and authorization to sell the goods to consumers, alleged Epson America in a false advertising and unfair competition complaint (in Pacer) Tuesday in U.S. District Court in Fort Lauderdale. Many of the Epson products marketed are “restricted SKUs,” mainly projectors, sold only through Epson authorized resellers, “which Stratton AV is not,” it said. Consumers who order Epson products through the merchant “are confused and disappointed” when the order never arrives or is canceled or when they receive a product they didn’t order, said Epson. Consumers who are charged need to go after Stratton AV or Amazon to get a refund, it said. Epson is “injured by Stratton AV’s misconduct due to the significant lost sales it suffers as a direct and proximate result thereof,” it said. Epson has contacted Stratton AV more than 20 times since June 2018, trying to curb its “improper” behavior, it said. Epson seeks an injunction, plus compensatory and punitive damages. Stratton AV operates out of Doral, Florida, said the complaint, but attempts to reach the merchant for comment Wednesday were unsuccessful. Amazon, not a defendant in the action, didn’t respond to questions.

Nobody is forcing users to search on Google, the company said Monday. Google generally denied plaintiffs’ legal claims in an answer (in Pacer) to DOJ and states’ antitrust lawsuit at U.S. District Court in Washington (case 1:20-cv-03010-APM). “People use Google Search because they choose to, not because they are forced to or because they cannot easily find alternative ways to search for information on the Internet.” The court let California, Michigan and Wisconsin intervene last week and scheduled trial for Sept. 12, 2023 (see 2012210041).

California, Michigan and Wisconsin may intervene in DOJ's and other states' antitrust lawsuit against Google, said a Friday minute order at U.S. District Court in Washington (case 1:20-cv-03010-APM). Trial could begin Sept. 12, 2023 (see 2012180047). The court entered scheduling, protective and discovery procedure orders Monday (in Pacer).