A host of companies and associations -- including Comcast, AT&T, iHeartMedia and the Internet Association -- praised Washington, D.C.’s removal of a planned tax on the purchase of advertising. “This proposed tax would have created a substantial barrier for economic recovery and job creation in the District,” said a joint statement Wednesday, which was also signed by Verizon, the News Media Alliance and NCTA. NAB also signed the statement and released its own last week (see 2007230064). The tax’s removal “provides a far better environment for the many large and small business and media entities struggling to recover from the impacts of the COVID-19 pandemic,” the joint release said.

Oral argument in Maine's appeal of a preliminary injunction request by Comcast and content companies challenging the state's a la carte cable TV law (see 2004300011) will be held remotely Sept. 16 due to the pandemic, the 1st U.S. Circuit Court of Appeals said Tuesday (in Pacer, docket 20-1104).

Buying activity in eBay’s core marketplaces grew 29% in Q2, its “highest quarterly growth rate in 15 years,” said CEO Jamie Iannone on an investor call. EBay hired him in April from Walmart, where he was chief operating office for e-commerce (see personals section, April 14). He was an eBay vice president for eight years before leaving in 2009 to become CEO of SamsClub.com. “Consumer behavior is rapidly evolving and this dynamic has been accelerated by COVID-19," said Iannone Tuesday evening. The pandemic is significantly speeding buying activity growth and "new customer acquisition,” he said. But he’s “not satisfied with where we currently stand,” he said. “We've not executed to our full potential. New competitors have taken share because we neglected our core area of expertise.” EBay wrongly focused on new areas that “could not drive sustainable or profitable growth,” he said. “To be candid, we did not adapt quickly enough to the rapidly changing needs of our customers.” The company has “enormous untapped potential that we absolutely must capitalize on,” he said. “This is what brought me back to eBay.” Reshaping the company will be a “multiyear process,” he said. “Tech-led reimagination, our plan is to become the best marketplace in the world for buyers and sellers.”

House Commerce Committee ranking member Greg Walden, R-Ore., and Consumer Protection Subcommittee ranking member Cathy McMorris Rodgers, R-Wash., pressed Apple and Google Wednesday for information by Aug. 12 about how they ensure apps sold through their mobile platforms “are appropriately vetted, particularly those with close ties to China and the Chinese Communist Party.” Apple CEO Tim Cook and Google CEO Sundar Pinchai were among those testifying Wednesday to the Antitrust Subcommittee (see 2007290063). “The growth of smart device use and reliance on teleconferencing has only increased our dependence on apps, and with that an additional layer of protection that virtual private networks (VPNs) can provide,” Walden and Rodgers wrote Cook and Pinchai. “Bad actors may be taking advantage of the American people’s trust” in Apple and Google amid the pandemic, “which likely extends to apps available through” the companies’ stores. The legislators asked whether the companies “apply additional scrutiny” to TikTok due to parent ByteDance’s “close ties” with the Chinese government. Apple and Google didn’t comment. TikTok said it's enhancing transparency (see 2007290046).

Increased "working and schooling from home" due to COVID-19 resulted in a strong PC market in Q2, said Advanced Micro Devices CEO Lisa Su on a Tuesday investor call. Desktop processor sales declined sequentially, but AMD had record quarterly unit shipments and revenue in laptop processors. AMD 90 days ago expected COVID-19-related weakness to bring the PC market down in the second half, she said: It’s now expecting PC processor sales will grow. The pandemic increased the “overall” PC market and stimulated a “strong shift from desktop to notebooks,” she said. “The second half will continue to be good for notebooks and PCs overall and that's part of this idea that PCs are now essential.” The stock closed 12.5% higher Wednesday at $76.09.

The pandemic is creating challenges and “opportunities for us and our industry,” supplying headsets for COVID-19's “hybrid work environment,” said Poly interim CEO Bob Hagerty on a quarterly call Tuesday. “Hybrid working trends are here to stay.” It’s estimated 30% to 40% of employees globally “will continue to work from home, with many adopting a flexible work schedule, splitting their time between the office and home.” The “net effect” is a bigger total addressable market “and a long-term growth opportunity for our company, which we are working aggressively to capitalize on,” he said. Headset demand remains “elevated,” putting stress on Poly’s supply chain, said Hagerty. “Our factory in Mexico is capable of running at full capacity, but we are having to flex our production based on component availability.” The stock closed 17.4% higher Wednesday at $21.89.

The State Department’s Directorate of Defense Trade Controls is considering permanently revising international traffic in arms regulations so industry employees involved in ITAR can work remotely, said Wednesday's Federal Register. DDTC said, due to industry requests, it will extend through this year temporary telework measures, which had been set to expire July 31. The agency will use that time to “fully investigate the possibility and ramifications of making this modification, or a variation thereof, a permanent revision,” and may seek comments. DDTC said the extension will “provide regulated entities with staffing flexibilities” during the pandemic and it seems "regulated entities will continue to engage in social distancing measures for the foreseeable future.”

“Size and sophistication” of online attacks “has risen dramatically” with the pandemic’s spike in internet traffic, said Akamai CEO Tom Leighton on a Tuesday investor call: “Threat actors” are taking advantage of the “distraction and vulnerabilities created by employees working remotely.” Malware reports to Akamai jumped nearly fivefold in Q2 from the previous quarter, he said. Nearly half the content on a typical website “originates from third parties,” estimated Leighton. “Attackers are embedding malware in this content to steal users’ credit cards and other personal data.” Theft of login credentials “is another growing problem,” he said. “We blocked more than 53 billion credential abuse attempts last quarter, more than four times the number we saw in Q2 of last year.” Demand for the company's media and security services “more than offset” revenue downturns from the travel and hotel industries and other sectors “hit hardest by the pandemic,” said Leighton: Churn “stayed below 1% of annualized revenue.” Chief Financial Officer Ed McGowan estimated Akamai took a $14 million Q2 hit from COVID-19, mainly through “contract restructurings and elevated bad debt reserves.” A 13% revenue gain and 29% profit increase reflected a “continuation of the high traffic levels” on the internet since the onset of the pandemic, said Leighton. Peak traffic exceeded 100 terabits daily, he said. “That’s a lot of traffic.”

COVID-19 has been a mixed bag for Spotify. Monthly active users in Q2 grew 29% year on year to 299 million, at the top end of guidance, said Wednesday's shareholder letter. Ad revenue fell to $154 million from $194 million. Revenue rose to $2.22 billion vs. $2.17 billion. Quarter to date through May, ad-supported sales fell 25% vs. 2019, said CEO Daniel Ek on a call: “Big declines” were due to the COVID-19 pandemic but improved to 12% lower in June. Pandemic-related softness in April and May, including payment failures by Premium users in Latin America and emerging regions, were offset by strength in North America and other areas. Struggling regions rebounded in June, with increased reactivations and slower churn. Overall listening hours in June returned to previous levels, Spotify said. Consumption trends by platform “are beginning to normalize,” with in-car listening at the end of Q2 less than 10% below pre-COVID-19 levels; they sank as far as 50% year on year in April. Spotify stock has jumped about 70% since the company signed comedian Joe Rogan to an exclusive podcast deal in mid-May, noted Pivotal Research Group's Jeffrey Wlodarczak in a Wednesday investor note. The analyst attributed the spike to “hope that Spotify can eventually become” like Netflix with “exclusive podcast content helping to drive higher subscriber growth, lower subscriber churn, increased engagement, greater ability to move consumers from the free funnel to premium and eventually reverse negative ARPU [average revenue per user] trends.”

The Broadband Deployment Advisory Committee's Disaster Response and Recovery Working Group reported Wednesday on progress on a pandemic report assigned by the FCC. One theme is that access to broadband overrides all other issues raised by COVID-19, officials said during the group’s quarterly meeting, held virtually. A final report should be ready for BDAC’s next meeting in October, said Red Grasso, WG chair who represents the North Carolina Department of Information Technology. “We’ve been pretty aggressive.”