U.S. District Judge Jennifer Rochon for Southern New York in Manhattan denied former Amazon third-party seller Shenzhen Zongheng Domain Network's petition to vacate an arbitration award in Amazon’s favor, and granted Amazon’s cross-motion to confirm that award, said her signed opinion and order Tuesday (docket 1:23-cv-03334).

The House approved an amendment Wednesday night to the FY 2024 Appropriations Financial Services Subcommittee funding bill (HR-4664) that would defund the FCC's Communications Equity and Diversity Council, but the proposal’s prospects remained in doubt Thursday after chamber leaders abruptly pulled the measure off the floor amid misgivings from some Republicans. House GOP leaders are eyeing a pivot to a continuing resolution to fund the government past Nov. 17 but were still deliberating on its contours Thursday afternoon.

Congress must act quickly to address AI-driven harms in U.S. elections, Senate Majority Leader Chuck Schumer, D-N.Y., said Wednesday on the Senate floor. He hosted the fifth and sixth AI Insight Forums, where attendees heard from experts about elections, privacy and liability. Attendees included: Microsoft Information Integrity Director Matthew Masterson, Meta Vice President-Public Policy Neil Potts, Google Global Elections Integrity Director David Vorhaus, Anti-Defamation League Vice President-Center for Technology & Society Yael Eisenstat, TechFreedom Free Speech Counsel Ari Cohn, Michigan Secretary of State Jocelyn Benson, Utah Lt. Gov. Deidre Henderson (R), Public Knowledge CEO Chris Lewis, Information Technology and Innovation Foundation Vice President Daniel Castro, Center for Democracy & Technology Vice President-Policy Samir Jain, Match Group CEO Bernard Kim and Mozilla President Mark Surman. Schumer raised concerns about AI-generated political ads and uncensored chatbots harming candidates from both parties. “If we don’t enact the right guardrails soon, we could soon live in a world where political campaigns regularly deploy totally fabricated -- yet totally believable -- images and footage” of candidates from both parties, “distorting their statements and greatly harming their election chances,” he said.

Broadband providers and allies are heavily lobbying the 10th floor regarding the pending digital discrimination order on the FCC's November agenda (see 2310240008), raising red flags and pushing for changes, per docket 22-69 filings Monday. Fans of the draft order are also calling for changes.

U.S. District Judge Edgardo Ramos for Southern New York in Manhattan granted the FTC’s motion to strike defendants Iqvia and Propel Media’ s constitutional and equitable defenses with prejudice, said his signed opinion and order Tuesday (docket 1:23-cv-06188). The FTC argued that defenses asserted by Iqvia in the antitrust case should be dismissed on grounds that several raise constitutional challenges to the FTC’s powers that are “immaterial” and “impertinent” to the “narrow inquiry” that the court must undertake pursuant to the FTC Act in evaluating a claim for a preliminary injunction. The FTC seeks to enjoin Iqvia from completing its purchase of Propel Media (see 2310120051), saying the proposed acquisition would “substantially lessen competition by combining two of the top three providers of programmatic advertising targeted specifically at U.S.-based [healthcare professionals] on a one-to-one basis.” The court agreed with the FTC that the defenses are either “legally insufficient or inadequately pled and that the FTC would be prejudiced by their inclusion.” The state of the law in the Second Circuit is “well settled” that a laches defense is not available against the government when it is protecting the public interest, “and there can be no dispute that the FTC commenced this action to protect the public interest,” said the order. Defendants' asserted that the doctrine of equitable estoppel “binds the FTC to the claims, assertions, and admissions made by the U.S. Government about the digital advertising industry” in a suit pending against Google in the Eastern District of Virginia. But Ramos said that suit alleges that under sections 1 and 2 of the Sherman Act, Google is a monopolist in digital advertising and has significant market share as a demand-side platform. Equitable estoppel may apply where “(1) the party to be estopped makes a misrepresentation of fact to the other party with reason to believe that the other party will rely on it; (2) and the other party reasonably relies upon it; (3) to her detriment,” Ramos said, citing Kosakow v. New Rochelle Radiology Associates. But it is “well established” that “the Government may not be estopped on the same terms as any other litigant,” he said, and, citing Davila v. Lang, only “’in the most serious of circumstances’ when a party has reasonably and detrimentally relied on the government’s misrepresentation, and the government has engaged in affirmative misconduct.” Defendants here “do not provide any allegations making it plausible that they can satisfy the estoppel requirements -- even before accounting for the higher standard to invoke the defense against the government,” he said. Allowing the estoppel defense to remain “would prejudice the SEC by needlessly lengthening and complicating the discovery process and trial of this matter.”

Under a newly introduced bill imposing a pollution fee, importers of record would have to pay a tax based on the percentage of the value of the imported good and calculated on the difference between the pollution intensity of that good's production in the country it's manufactured in and domestic production.

The wireless communications industry opposes Utah's allowing phone subscriber information to be used to identify and verify the ages of social media users, CTIA State Legislative Affairs Director Jake Lestock told Utah Commerce Department officials Wednesday. Utah’s Consumer Protection Division held a public hearing on proposed rules for the Utah Social Media Regulation Act. The state legislature passed the bill in March. The new law went into effect in May, but enforcement doesn’t begin until March 2024. CTIA supports the intentions of the underlying law and rulemaking but has a “very narrow concern” about subscriber data being used to verify users. It’s “not appropriate for numerous reasons,” including “regulatory considerations, for mobile subscriber data to be used to verify identity, age and familial relationships,” said Lestock. The public has until Feb. 5 to comment on the proposed rules.

A recent ruling by a U.K. appellate court “sent the sanctions legal community into a bit of a tailspin” after it appeared to pave the way for the government to treat every Russian public and private entity as a sanctioned party, said Daniel Martin, a sanctions lawyer with HFW. Although the U.K. has since clarified that its sanctions aren’t necessarily meant to apply to every Russian company, Martin said questions remain, including whether banks now will be even less willing to handle Russia-related transactions, whether U.K. lawyers will continue to be able to participate in Russian-related proceedings, and whether similar logic could apply to U.K. sanctions against other countries.

A recent ruling by a U.K. appellate court “sent the sanctions legal community into a bit of a tailspin” after it appeared to pave the way for the government to treat every Russian public and private entity as a sanctioned party, said Daniel Martin, a sanctions lawyer with HFW. Although the U.K. has since clarified that its sanctions aren’t necessarily meant to apply to every Russian company, Martin said questions remain, including whether banks now will be even less willing to handle Russia-related transactions, whether U.K. lawyers will continue to be able to participate in Russian-related proceedings, and whether similar logic could apply to U.K. sanctions against other countries.

Comcast, Mediacom and Verizon extended broadband to 5,859 Delaware homes and businesses in mainly rural areas in the past 12 months, with American Rescue Plan Act funding, Gov. John Carney (D) said Thursday. The state expects to reach another 372 locations in the next few months, said Carney’s office: When complete, Delaware will have spent $33 million of ARPA money. Competitors last year raised concerns with Delaware limiting eligibility for ARPA funding to big ISPs with existing cable franchises (see 2204090003). Meanwhile in Michigan, Gov. Gretchen Whitmer (D) announced $203 million awarded in the first round of the state’s Realizing Opportunity with Broadband Infrastructure Networks grant program. With money from the U.S. Treasury's Capital Projects Fund, the grants will connect 70,000 unserved homes and businesses to fiber, Whitmer said. The state awarded 18 projects from nine applicants, which put up $202 million in total matching funds.