Another lawsuit over Google AdWords bit the dust. It had been filed by a competing search engine that said Google illegally priced it out of advertising. But in a twist, an Internet company’s forum-selection clause trumped antitrust claims. TradeComet, which runs the business-to-business search engine SourceTool, said Google jacked up ad prices for SourceTool after the company had spiked its traffic through AdWords campaigns. It also claimed Google refused to lower its prices after expensive landing-page changes and intentionally favored some “partners” whose compliance with ranking criteria was downplayed (WID Feb 19/09 p3). The parties disagree over which set of Google AdWords terms and conditions should govern the dispute -- that in effect when Google’s behavior started in mid-2006, not explicitly limiting litigation to its home court of Santa Clara County, Calif., or a revised policy that summer making explicit that location requirement. Both sets bind AdWords customers to accept policy changes made by Google in the future. U.S. District Judge Sidney Stein in New York said the parties agreed the dispute was governed by California law, which allows for a party’s “implied power to terminate or modify a unilateral contract” with some limitations. “The plain language” of both agreements shows TradeComet is bound by the summer revision, Stein said. Second U.S. Circuit Court of Appeals precedent considers a clickwrap agreement, as is used in the AdWords contract, to be “reasonably communicated” to a customer, and Google showed that TradeComet clicked through to accept the revised agreement. Stein said TradeComet’s antitrust allegations “arise out of and relate to” AdWords -- and that condition is specifically provided for in the AdWords contract, in contrast to other contracts with narrower forum-selection clauses. TradeComet similarly can’t show the clause is “unreasonable or unjust,” lacking evidence that Google practiced “selective enforcement” of the clause, he said.
Global Crossing said it expanded capacity on its Mid-Atlantic Crossing (MAC), South American Crossing (SAC) and Pan American Crossing (PAC) undersea fiber cable systems. The increases will improve connections among Latin America, North America and Europe starting over the next six months, with some segments ready for service starting in May, the company said. The MAC undersea system includes about 4,600 route miles of fiber cable and landing stations in Brookhaven, N.Y., Hollywood, Fla., and St. Croix, U.S. Virgin Islands. MAC connects Global Crossing’s PAC, SAC and Atlantic Crossing-1 subsea systems to provide full connectivity among North America, Latin America and Europe. The MAC system provides IP and Synchronous Digital Hierarchy services at rates up to 10 Gbps. The PAC submarine cable network spans more than 6,000 route miles, connecting the U.S. to Mexico, Central America and South America. It has landing stations in Grover Beach, Calif.; Tijuana, Mexico; Mazatlan, Mexico; Esterillos, Costa Rica; and Fort Amador, Panama. It’s a self-healing ring and Wavelength Division Multiplexing technology. The SAC system includes about 12,000 route miles of fiber cable and landing stations in St. Croix, U.S. Virgin Islands; Fortaleza, Brazil; Rio de Janeiro; Santos, Brazil; Las Toninas, Argentina; Valparaiso, Chile; Lurin, Peru; Fort Amador, Panama; and Puerto Viejo, Venezuela. Fort Amador and Puerto Viejo are shared by Global Crossing’s PAC/Cook’s Crossing undersea systems. The SAC system is a four-fiber-pair repeatered system providing 10 Gbps transport.
U.S. Customs and Border Protection has issued a CSMS message announcing that it is giving the trade an additional week to test the Automated Commercial System programming changes required for the Food and Drug Administration's final rule on prior notice of food (including animal feed), which is imported or offered for import into the U.S. These changes were installed in the ACS Certification (test) region on February 24, 2010.
As part of its fiscal year 2011 budget justification document, the Department of Homeland Security listed numerous FY 2011 goals for U.S. Customs and Border Protection. Highlights of those goals for specified activities include:
AT&T CEO Randall Stephenson believes the FCC will deal with net neutrality in a positive way: “I'm actually fairly optimistic net neutrality will land at a reasonable place.” However, he questioned the FCC’s goal of bringing 100 Mbps broadband speeds: “If the objectives are 100 Mbps capability to every home in the U.S., that is going to require a lot of investment. To drive that kind of investment will require a redirecting of the subsidies that exist today.” Meanwhile, the wireless industry is going to have variable pricing models so the heavy-use customers will pay more than the lower-use customers, he said during the Morgan Stanley analyst conference late Tuesday. Apple’s iPhone will be “an important part” of AT&T’s handset portfolio for quite some time, he said. Stephenson sees stability with large corporate and government spending. Unemployment rates are starting to moderate, he said.
The Acting Director of the Department of Homeland Security's Domestic Nuclear Detection Office sent a letter to the Chairman of the Senate Homeland Security and Governmental Affairs Committee announcing that it would scale back development of Advanced Spectroscopic Portal (ASP) monitors, given the monitors' continued failure to live up to expectations.
LAS VEGAS - In the wake of Wal-Mart’s proposed acquisition of Vudu, CE makers are bracing for the crossfire between rival retailers seeking supremacy in the battle of video download and streaming services, manufacturer executives said at the Nationwide Buying Group meeting here.
In approving with 57 conditions Frontier Communications’ proposed purchase of Verizon landline networks in Oregon (CD March 2 p10), the Public Utility Commission stressed consumer protection, the regulator said Friday. “First and foremost we want to ensure that customers are not harmed by this transaction,” Chairman Lee Beyer said. “That’s why we are requiring more than 50 conditions, all aimed at making sure customers are not harmed by this sale.” Frontier has 12,000 land lines in Oregon and is in line to acquire approximately 310,000 landline customers in the state from Verizon, the commission said.
The National Broadband Plan will take into account “the unique circumstances” faced by American Indian tribes, FCC Chairman Julius Genachowski said Tuesday during a speech to the National Congress of American Indians meeting in Washington. The FCC needs different programs to promote broadband deployment in “Monument Valley” than in Silicon Valley, Genachowski said: “I get that.”
"Daily Update on Capitol Hill Trade Actions" is a daily International Trade Today compilation of the most relevant legislation, hearings, and actions by Congress involving international trade. The following are brief summaries of recent Capitol Hill actions: