Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

2019-07-06

Tech Review 1) Why Jony Ive Chose To Leave Apple, 2) Big Tech & Profits

graphic "Tech Review" ©2017 DomainMondo.com
Tech Review (TR 2019-07-06)--Domain Mondo's weekly review of tech investing news: Features • 1) Why Jony Ive Chose To Leave Apple, 2) Big Tech: Do Profits Really Matter? 3) Investing: The Week & Investor NotesChina & Huawei, Eurozone Japanification, US Pension Crisis & Federal Debt, 4) ICYMI Tech News: WTF Apple? Amazon, Broadcom, Antitrust, Google, and more.
UPDATE Deutsche Bank (NYSE: DBbites the bulletradical transformationnew leadershipcuts 18,000 jobs. 
1) Why Jony Ive Chose To Leave Apple

Jony Ive will leave Apple later this year to start a new venture of his own, called LoveFrom, with Apple as his first client. No one will be taking Jony Ive's title, Chief Design Officer, a position at the center of 20 years of product development at Apple, when he leaves, says the FT.com's technology correspondent Tim Bradshaw, who talks about his exclusive interview with Jony Ive in the video above published June 28, 2019.
"To create something that's genuinely new, you have to start again and I think with great intent, you disconnect from the past."--Jony Ive
Editor's note:  Why did Jony Ive choose to leave Apple? He simply wanted to do something new.

See also: Apple Chief Executive Tim Cook on Monday fiercely disputed a WSJ report about the departure of Jony Ive and the company's ability to uphold its commitment to innovative design.

2) Big Tech: do profits really matter?

Why are loss-making tech companies still attracting investors who are willing to wait for companies to turn a profit? FT.com video published July 1, 2019.

Note also re: fracking technology: “I'm not aware of another case of a disruptive technological change that has done so much harm to the industry that created the change ... While hundreds of billions of dollars of benefits have accrued to hundreds of millions of people, the amount of shareholder value destruction registers in the hundreds of billions of dollars ... The industry is self-destructive.”--Steve Schlotterbeck, former chief executive of EQT, a shale gas giant, at a petrochemicals conference in Pittsburgh. Editor's note: and this doesn't even begin to address  fracking's health and environmental issues.

3) Investing
graphic: "INVESTING"  ©2017 DomainMondo.com
The Week: NASDAQ Composite +1.9% | S&P 500 Index +1.7% | DJIA +1.2%
Stocks finished slightly lower on Friday, backing away from all-time highs hit earlier this week, after a better-than-expected employment report in June partially rolled back investors' expectations for multiple rate cuts this year.
I Just Hope the Fed Doesn’t See This Jobs Report--wolfstreet.com. U.S. nonfarm payrolls rose 224,000 in June, well above market expectations of 165,000, according to the Labor Department. The unemployment rate edged higher to 3.7% (300,000 people entered the labor force looking for work and therefore counted as unemployed), but was still near 50-year lows. Wage growth was 3.1% year over year.
Goldman Sachs' explanation on why there is now a "bull market in almost everything"--"monetary policy" remains the main driver of risk appetite and expectations are now very bullish.

Global hedge fund liquidations exceeded launches for the third consecutive quarter as managers faced a tough capital-raising environment. About 213 funds closed in the first three months of this year, compared with 136 that opened--bloomberg.com. Editor's note: why pay the high fees?
Investor Notes: 
China: "The Huawei battle reflects a fundamental geostrategic shift in Washington. For decades, the U.S. foreign policy establishment assumed Beijing would evolve into a cooperative partner in the rules-based, American-led international order that did so much to foster China's boom. That hope has evaporated. Now, the United States sees China as an adversary determined to challenge American leadership in technology and innovation. President Donald Trump has launched a trade war against Beijing and is boosting defense spending. Huawei is cast as a Chinese standard-bearer in that struggle."--Special Report | reuters.com See also:

EU: The Eurozone’s Japanification--with the eurozone economy stuck in a low growth, low inflation and low rates environment, it's really hard not to make 'Japanification' comparisons. If we're honest, the eurozone is probably already in the thick of it, which means rates are likely to remain lower for longer and every new crisis or recession will bring the bloc closer to more Japanification--ing.com. See also French Bond Yields Slide Below Zero, Hit All Time Record Lows and Deutsche Bank's Restructuring Plan To Cost Staggering €5 Billion--zerohedge.com; German prosecutors are escalating a money laundering inquiry involving Deutsche Bank, including planned raids on wealthy former clients, a person with direct knowledge of the matter told reuters.com.
There is the ongoing economic misery across Europe. Most of the economy remains stalled – and there are signs it could get worse ...  I am not anti-European, but I think it’s about to go through a slow implosion. There is an increasing likelihood Europe becomes largely detached and delinked from the US and other Occidental economies, and irrelevant to the growth economies of the Orient. From a trade perspective, I suspect we’d [UK] be better off outside [the European Union]--Bill Blain.
See also  How Does the European Union Work? The EU’s authority has steadily expanded as its members have passed more and more decision-making power to the union--cfr.org. New leaders of the EU / ECB (nominees still need to be debated and ratified by the European Parliament):
  • Ursula von der Leyen, 60, Germany: European Commission President;
  • Charles Michel, 43, Belgium: President of the European Council;
  • Josep Borrell, 72, Spain: EU High Representative (foreign policy);
  • Christine Lagarde, 63, France: European Central Bank President.

U.S. Under the Radar: Pension Crisis Deepens in U.S. as strategies shift, outlooks dim--bloomberg.com. "I can only repeat again and again: There is no solution to the woefully underfunded pensions in Chicago and in Illinois that does not involve benefit cuts subsequent to a 2020 constitutional amendment or municipal bankruptcy.  And the sooner Pritzker and Lightfoot figure that out, the better off we’ll all be."--wirepoints.orgNote alsosoaring federal debt "poses substantial risks for the nation" warns Congressional Budget Office (CBO).

4) ICYMI Tech News:
graphic: "ICYMI Tech News" ©2017 DomainMondo.com
WTF Apple? Apple Moves Mac Pro Production to China--the $6,000 desktop computer had been the company’s only major device assembled in the U.S.--wsj.com. See also Electronics exodus from China--HP and Dell plan to shift up to 30% of notebook production out of China; Microsoft, Google, Amazon, Sony, Nintendo also want to move some production--nikkei.com.

Airbnb is among IPOs investors are anticipating in the second half of 2019--CNBC (video).

Broadcom In Advanced Talks to Acquire Symantec--another software acquisition by CEO Tan?

Antitrust: Retail Industry Leaders Association (RILA) representing Walmart, Target, Best Buy, others writes to FTC (pdf) about tech giant dominance, offering help with antitrust probes, and calls out Amazon and Google. 

Amazon & Product Liability: 3rd U.S. Circuit Court of Appeals (2-1) rules customers can sue Amazon when they buy defective products from its platform, even if Amazon did not make those products.

What's left to monetize? It appears the answer is "very little."--blogspot.com--"Advertising has always monetized consumers' time and attention, what we call engagement today. Big Tech has generated billions of dollars by monetizing other forms of engagement and privately owned capital/assets. Google has monetized web search ... AirBNB has monetized privately owned or leased homes and flats ..."

Early front-runners to regulate Libra are FINMA (Switzerland) and BOE (UK): "The long-run success of Libra critically depends on finding a nation with financial gravitas willing to provide Libra-friendly rules."--seekingalpha.com.

Ireland-based cryptocurrency exchange Bitsane has apparently vanished, taking as many as 246,000 users’ crypto deposits with it.--zerohedge.com.

Personal Tech: Surviving a SIM swap attack | zdnet.com--"Turns out, the attack was likely driven by a Coinbase account I experimented with in early 2018 that was never closed." See also The Motherboard Guide to Not Getting Hacked.

-- John Poole, EditorDomain Mondo

feedback & comments via twitter @DomainMondo


DISCLAIMER

2019-06-29

Tech Review | US Imports From Vietnam Surge, While China Declines

graphic "Tech Review" ©2017 DomainMondo.com
Tech Review (TR 2019-06-29)--Domain Mondo's weekly review of tech investing news: Features • 1) Trump Effect: US Imports From Vietnam Surge, While China Declines, 2)  Facebook's Libra Could Disrupt the Remittance Industry, 3) Investing YTD & Investor Notes: China, EU, US, & Zombies,  4) ICYMI Tech News: Apple, Flipkart, iQiyi, Google, Microsoft, Amazon, and more.

1) Trump Effect: US Imports From Vietnam Surge, While China Declines
And it's not just Vietnam that is a winner from the US-China Trade War:
source: statista.com
Editor's note and caveat: "Exports from China are a murky thing. To dodge tariffs, some of it gets transshipped via other countries, such as Vietnam, before the products are shipped to their destinations, such as the US or the EU ..."--Wolfstreet.com.

Nevertheless, in a note this week, Anne Stevenson-Yang, co-founder of J. Capital Research  (domain: jcapitalresearch.com), wrote that China has already entered its “Japanese phase,” marshalling financial resources exclusively to avoid crisis. China's economy is overleveraged, as demonstrated clearly by the Baoshang situation, and China may now be prey to further problems, perhaps even a perfect storm event.

China is again resorting to such tactics as gross overproduction of steel in a desperate attenpt to keep its economy humming, but even that may fail. In order of tonnage of crude steel, ArcelorMittal is first with 96.4 Mt (in 2006, India’s giant Mittal Steel acquired French giant Arcelor; and is now registered in Luxembourg as a mailbox company run from India) and the EU has had tariffs on Chinese steel for years.

Also note:
  • Vietnam economy (GDP April-June quarter) grows nearly 7% on trade war tailwinds--Manufacturing exodus from China propels one of fastest boosts in region--nikkei.com.
  • India Plans to Offer Incentives to Companies Moving From China--"aim is to become a production base for firms fleeing tariffs."
  • Vietnam's Vingroup in deal with Fujitsu unit, Qualcomm to make 5G phones to be manufactured in Hanoi and sold in the U.S. and Europe in 2020.
  • A Dark Alley in China’s Credit Market Is Getting Rough--bloomberg.com June 24, 2019.
  • As China's Banking System Freezes, SHIBOR Tumbles To Lowest In A Decade--zerohedge.com June 24, 2019.
  • Trump Pressured by Congress to Stay Tough on Huawei--bloomberg.com June 24, 2019.
  • The U.S. is now playing down expectations for progress from a Trump-Xi meeting during the G20 June 28-29, with the U.S. holding its hard line demands for meaningful Chinese economic reforms, according to Bloomberg.

2) Facebook's Libra Could Disrupt the Remittance Industry
source: statista.com
Money transfers a/ka "remittances" to low- and middle-income countries reached a record high of $529 billion in 2018, according to the World Bank and the world's total remittances in 2018 were $689 billion. “Success will mean that a person working abroad has a fast and simple way to send money to family back home,” says Libra’s white paper, and the UN Sustainable Development Goals aim to reduce the transaction costs of migrant remittances to less than 3 percent and eliminate remittance corridors with costs higher than 5 percent by 2030. Libra could lead the way. See alsoHow Libra Cryptocurrency & Blockchain Network Will Work (video).

3) Investing
graphic: "INVESTING"  ©2017 DomainMondo.com
YTD (Year-to-date): NASDAQ Composite +21% | S&P 500 Index +17%  | DJIA +14%
The DJIA closed at 26,599 on Friday, up 73 points, its best first half since 1999 and best June since 1938. It was also the best June for the S&P 500 since 1955.
US: Economy Breaks Record on Trump’s Watch--bloomberg.com“If voters went to the ballot box today, it would be the strongest economy in U.S. election history,” said Justin Waring, an investment strategist at UBS in New York. Unemployment is close to a half-century low and inflation is so subdued that some have pronounced it dead. 
Editor's note: this is neither a Bull Market nor a Bear Market, this is Trump's Market.
Investor Notes: 
China: signs of a slowdown in China’s property market continue --office vacancies in tech-centric Shenzhen rose to more than 23% for the first half of 2019, a decade high, reported Caixin (domain: caixinglobal.com).

EU: "There is no common Fiscal Policy. Thus the Eurozone stagnates, withers and has utterly lost momentum …" The next ECB president? "Best candidate for the ECB job is going to be a secondary issue to how many other jobs France and Germany get."--Bill BlainAnd Brexit? UK looks cheap ... but we still face a few more months of fraxious uncertainty.

US: "... investors, both foreign and domestic, continue to buy Treasuries, no matter the risks associated with them. And the longer they buy Treasuries, the bigger the US debt load becomes, and — ironically — the lower the risk of default."--cfainstitute.org.

Zombies: A report from the Bank for International Settlements found 12% of publicly listed companies around the world can be described as zombie firms:
"The rising number of so-called zombie firms, defined as firms that are unable to cover debt servicing costs from current profits over an extended period, has attracted increasing attention in both academic and policy circles. Using firm-level data on listed firms in 14 advanced economies, we document a ratcheting-up in the prevalence of zombies since the late 1980s. Our analysis suggests that this increase is linked to reduced financial pressure, which in turn seems to reflect in part the effects of lower interest rates. We further find that zombies weigh on economic performance because they are less productive and because their presence lowers investment in and employment at more productive firms."--BIS report, supra.
"Policies created to pull the world out of recession are still in place, but now they are strangling the global economy ... we are in a fat and slow world," wrote Ruchir Sharma in the New York Times, June 15, 2019. What exactly is the problem?
"The trademarks of the fat and slow world: larger corporations, declining competition and fewer start-ups (all of which contribute to wage inequality), ... together undermine and slow economies already hindered by falling growth in the working-age population."--Sharma, supra.

4) ICYMI Tech News:
graphic: "ICYMI Tech News" ©2017 DomainMondo.com
Jony Ive Is Leaving Apple--but he's not being replaced, and the design team reporting to operations makes no sense--daringfireball.net.

Walmart Inc’s Indian unit Flipkart said late Thursday it plans to replace nearly 40% of its current fleet of delivery vans with electric vehicles (EVs) by March 2020.

iQiyi (domain: iqiyi.com) China’s version of Netflix, reportedly wants to enter overseas markets including North America and Japan after hitting a milestone of 100 million paying subscribers this month, even though the company has been in a cash-burning fight with Tencent’s video site and Alibaba-backed Youku Tudou in China. See also: China's Alibaba aims to double Tmall Global brands with English portal.

Toyota to invest $2 billion in developing electric vehicles in Indonesia.

Goodbye, Chrome? Google’s web browser has become spy software ... why Firefox is better says Washington Post (owned by Amazon's Jeff Bezos).

Google Drive vs. Microsoft's OneDrive: choosing the right cloud storage and collaboration service.

Bezos Blowback? Will The AWS JEDI Scandal Upset Amazon's Omnipotence?--zerohedge.com.

The Empty Promise of Data Moats--a16z.comdata goes stale over time…

The European Digital Social Innovation Index by Nesta, published for the first time this year, found London came out on top in a ranking of 60 EU cities on indicators such as funding, skills, infrastructure and diversity. The European Digital Social Innovation Index (EDSII) is the first index ranking how different European cities support digital social innovation (DSI) and tech for good to grow and thrive. London had a significant lead over Amsterdam, which came in second place. Copenhagen, Stockholm and Paris rounded out the top five.

Personal Tech: going 'off the grid' this summer? Iridium GO!--turn any smartphone into a satellite phone--you can get access to phone calls, text, and more, 'off-grid' via the Iridium satellite network.

Parting Thoughts:
  • Tulsi Gabbard is the winner--Drudge instant poll shows Gabbard won the first Democratic debate in landslide.
  • Always "ask if the algorithm, which is a model of the world, is working the way it was designed to work. Models represent the market, and models are not reality. As Alfred Korzybski said, “The map is not the territory.”

-- John Poole, Editor, Domain Mondo  

feedback & comments via twitter @DomainMondo


DISCLAIMER

2019-06-28

G20 June 28-29, Trump and Xi Meeting 'Very, Very Critical' (video)

UPDATE Trump & Xi meeting--US-China Trade Talks Resume--Trump says he will allow sales of US equipment to Huawei where there are no national security issues, for now; US will not impose new tariffs on China, for now:

President Trump Press Conference, June 29, 2019, Osaka, Japan.

Trump and Xi's G-20 meeting is 'very, very critical'

Ric Deverell, Chief Economist and Global Head of Macro Strategy at Macquarie in Sydney, Australia, says, depending on what happens at the G-20 meeting between Trump and Xi, there could be a "double dip" or a sharp pick up in global growth. CNBC International TV video above published Jun 21, 2019. Macquarie Group Limited (domain: macquarie.com) is an Australian multinational independent investment bank and financial services company.

G20 Links: 


feedback & comments via twitter @DomainMondo


DISCLAIMER

2019-06-24

Druckenmiller on Macro Analysis of the Market, Trade, and Investing (video)

Stanley Druckenmiller: Macroeconomic Analysis of the Market, Trade and Investing 

Interview and Q&A on June 3, 2019, at the Economic Club of New York, with billionaire investor Stanley Druckenmiller, Chairman & CEO, Duquesne Family Office LLC. Topics covered include current macroeconomic factors and the impact of changes in interest rates, the US-China trade war, and more. Transcript (auto-generated, unedited)(pdf).

feedback & comments via twitter @DomainMondo


DISCLAIMER

2019-06-22

Tech Review 1) Big Tech & Antitrust, 2) World's Most Valuable Brands 2019

graphic "Tech Review" ©2017 DomainMondo.com
Tech Review (TR 2019-06-22)--Domain Mondo's weekly review of tech investing news: Features • 1) Big Tech & Antitrust, 2) World's Most Valuable Brands 2019, Huawei? 3) Investing: The Week & Investor Notes: Where the 'Ready' Users of Libra & Calibra Are, 4)ICYMI Tech News: Unicorns, 5G, Nvidia & ARM, Google, Walmart, Slack, and more.

1) Big Tech & Antitrust
Antitrust expert Doug Melamed on the new probes into Big Tech

Doug Melamed, Stanford law professor, joins CNBC's "Squawk Alley" to discuss how the Microsoft antitrust case he helped bring to court might affect the new probes into major tech companies. CNBC Television video above published Jun 13, 2019.

2) World's Most Valuable Brands 2019
World's Most Valuable Brands 2019 | statista.com
Amazon, Apple, Google, Microsoft, Visa, Facebook, Alibaba, Tencent, McDonald's, AT&T.
For more: Top 100 Most Valuable Global Brands 2019 (published June 2019).

Editor's note: Huawei? 
#47. Where will Huawei be next year? Huawei says U.S. ban hurting more than expected, to wipe $30 billion off revenue and Bloomberg.com: Huawei Braces for Phone Sales Drop of Up to 60 Million Overseas.
"The most ambitious start-ups attempted to transcend their region of origin to become seen as global brands."--brandz.com
Chinese Cash In Silicon Valley Is Suddenly Toxic: as U.S. startups reject their money, Chinese venture-capital firms in U.S. are structuring deals to avoid regulators or shutting down. See also:  World’s Top Bicycle Maker Says the Era of ‘Made in China’ Is Over and Apple Explores Moving Some Production Out of China--Trade tensions prompt iPhone maker to consider diversifying supply chain. On Friday the U.S. Department of Commerce expanded its national security “entity list” to bar Chinese supercomputer firms from buying U.S. parts and components without U.S. government approval.

3) Investing
graphic: "INVESTING"  ©2017 DomainMondo.com
The Week--NASDAQ Composite +3.0% | S&P 500 Index +2.2% | DJIA +2.4%--for the week all three major U.S. stock indexes gained at least 2.2%, with the S&P 500 hitting its first record close since April. 
The Backstory: U.S. stocks ended slightly lower Friday, but locked in strong weekly gains after the Federal Reserve indicated on Wednesday it could carry out rate cuts later this year if economic conditions decline, with investors eyeing a slowdown in the global economy, and the G20 meeting in Osaka, Japan, 28-29 June 2019, where a widely anticipated meeting between Chinese President Xi Jinping and U.S. President Donald Trump may take place.
Investor Notes--where the 'ready' users of Libra & Calibra already are:
source: statista.com
Background:
  • Fed Chair LIVE Jun 19, 2:30pm EDT, ECB Draghi Chaos, Facebook Calibra & Libra"The first product Calibra will introduce is a digital wallet for Libra, a new global currency powered by blockchain technology."
  • In an opinion piece in the Financial Times on Friday, Facebook Inc’s co-founder Chris Hughes said the Libra cryptocurrency would hand over much of the control of monetary policy from central banks to private companies: “If global regulators don’t act now, it could very soon be too late,” wrote Hughes, who also said the corporations that would oversee the new currency would put their private interests - profits and influence - ahead of public ones. Editor's note: what Hughes describes is exactly how ICANN has been corrupted.   
  • The international Financial Action Task Force (FATF) has issued updated guidance concerning regulation of cryptocurrency and virtual assets at its meeting in Orlando, Florida.
  • European central bankers claim oversight over Facebook’s cryptocurrency--reuters.com. Reuters also reported that France is creating a G7 task force to study how central banks ensure cryptocurrencies like Facebook’s Libra are governed by regulations ranging from money-laundering laws to consumer-protection rules.

4) ICYMI Tech News:
graphic: "ICYMI Tech News" ©2017 DomainMondo.com
"Unicorns are amazingly deflationary vehicles. They're deflating rents, they're deflating driver salaries, they're deflating all kinds of things"--renown short-seller Jim Chanos explaining how Silicon Valley unicorns have pushed prices lower and why central banks are to blame.

According to latest estimates by Ericsson, 5G won’t really take off until 2021/2022. See also Crown Castle International: a play on the coming of 5G and the expansion of IoT--SeekingAlpha.com.

Nvidia says its accelerator chips will work with ARM processors by end of this year.

Google will eventually provide RCS Chat (replacement for SMS texting) directly to any Android user. Note also Google cancels plans for future tablets, focusing instead on Pixel phones and Pixelbooks (chromebooks).

Urban Mobility: Getting Beyond Gridlock--by 2030 robo-taxis, autonomous shuttles, and trains, will provide most urban mobility with private cars only a very small share, and buses almost non-existent.

Walmart: U.S. eCommerce Strategy and the Role of Jet.com. Walmart is the fourth largest online retailer in the US in 2019, according to eMarketer estimates, behind only Amazon, eBay, and Apple. See also: Apple says iPhones can now be fixed at all U.S. Best Buy stores, and Brick-and-Mortar Meltdown Gets Costly for Big Retailers--wolfstreet.com.

Slack closed at $38.62, June 20, 2019, up 48.5% from its $26 reference price, on its first day of trading as a direct listing, valuing the company at about $20B. Domain: slack.com. Investor relations: https://investor.slackhq.com/home/default.aspx.

UK: likely next Prime Minister, Boris Johnson, pledges to 'end the digital divide' by 2025, via a full rollout of fiber broadband.

Personal Tech: most U.S. mobile banking apps have security and privacy flaws, researchers say.

-- John Poole, Editor, Domain Mondo  

feedback & comments via twitter @DomainMondo


DISCLAIMER

2019-06-16

News Review 1) Cyber Sovereignty Rising, 2) ICANN Fatally Flawed

graphic "News Review" ©2016 DomainMondo.com
Domain Mondo's weekly internet domain news review (NR 2019-06-16) with analysis and opinion: Features •  1) Cyber Sovereignty Rising, China's Vision of Internet Sovereignty Spreading, 2) ICANN Fatally Flawed? a.Afilias v. ICANN .WEB IRP Update, b. EPDP Meeting June 20 UPDATE3) a.Trademarkia v. LegalZoom, b. CJEU on Geograpnic Terms, c. Kaddish.com, 4) ICYMI, 5) Most Read.

1) Cyber Sovereignty Rising, China's Vision of Internet Sovereignty Spreading

China is offering a new version of the internet. This new vision combines sweeping content curbs with uncompromising data controls. It’s called Cyber Sovereignty and it’s already spreading to other countries around the world. Bloomberg.com video above published June 10, 2019.

Two Slides from Mary Meeker's 2019 Internet Trends Report:
Global Internet Users 3.8B (51% of world population), Growth Slowing: +6% vs. +7% Y/Y. Future growth in internet users will largely come from Asia Pacific, Africa & Middle East.

See also:
  • Google’s Chrome Browser Becomes Web ‘Gatekeeper’--Google has far-reaching control over how the web works, and who gets to create new ways of accessing it--bloomberg.com.
  • $20 Phones Could Bring a Billion People Online: about half of humanity doesn’t have internet access, and a lot of those people are in Africa. Enter a $20 device with smartphone brains and a five-day battery.
  • Taiwan's digital minister on combating disinformation without censorship--cpj.org.
  • Telegram says it faced a massive DDoS attack originating from China coinciding with protests in Hong Kong, where organizers used the app to evade surveillance.

2) ICANN News: ICANN Fatally Flawed?
graphic "ICANN | Internet Corporation for Assigned Names and Numbers"
ICANN Articles of Incorporation: "... The Corporation shall operate in a manner consistent with these Articles and its Bylaws for the benefit of the Internet community as a whole, carrying out its activities in conformity with relevant principles of international law and international conventions and applicable local law and through open and transparent processes that enable competition ..."

ICANN Bylaws: "ICANN shall not apply its standards, policies, procedures, or practices inequitably or single out any particular party for disparate treatment unless justified by substantial and reasonable cause, such as the promotion of effective competition."

"ICANN was created through an express transfer of powers and authority from the United States
government. While this express transfer included the powers and authority necessary to oversee
the secure and stable operation of the Internet’s DNS, the transfer did not include the power,
authority, or expertise to act as a competition regulator by challenging or policing transactions
and conduct that could be deemed anticompetitive."--ICANN Board Member and Neustar former employee, Becky Burr, infra, at p. 10, May 31, 2019, in Afilias v. ICANN IRP (emphasis added).

Editor's note: if Becky Burr (a/k/a J. Beckwith Burr) is right, the competition provisions in ICANN's articles and bylaws (see above) are essentially meaningless, and ICANN is fatally flawed and should therefore be replaced by the global internet community forthwith, remembering the competition advice that was given to ICANN (via NTIA) by the U.S. Department of Justice Antitrust Division in 2008, but which ICANN disregarded in favor of its own ill-conceived and corrupt new gTLDs program full of anti-competitive provisions.
"Let’s face it, the Internet is a utility and so are the corporations who control it ... Technology needs to be regulated."--Alan Patricof, longtime innovator and venture capitalist, April 30, 2019
a. .WEB IRP Update: Dueling ICANN Board Members & Dueling Expert Witnesses
Afilias Domains No. 3 Limited, Claimant, v. ICANN, Respondent, Independent Review Process  (IRP), 31 May 2019 filing by ICANN:

ICANN's Response to Claimant's Amended Request for IRP, excerpt, p.25:
 Exhibits to ICANN's Response below (basis for redactions):
Burr statement excerpt (p. 12): "No policy, precedent, or authority permits ICANN, based on competition concerns, to block Verisign from acquiring the rights to operate .WEB or to second-guess the judgment of the DOJ – the ultimate competition regulator in the United States – in determining not to act following its own expert and thorough investigation."
Carlton report excerpts (pp.9-12): "Applicants have collectively spent several hundred million dollars to become the operators of these new gTLDs. From 2013 to 2017, applicants spent a total of $294.6 million in new gTLD application fees, paid another $240.6 million for winning public auctions (including the .WEB auction), and expended many millions more in privately resolved contention sets. While I understand that ICANN does not have precise information about the sums spent in private resolutions, existing information suggests that the number is substantial. For example, one publicly-traded registry operator has disclosed that it has received over $50 million from losing private auctions."(pp.9-10) .... there exists evidence suggesting that an Afilias-operated .WEB is not likely to cause Verisign to reduce its already relatively-low .COM price below the regulated level." (p.12)
See also on DomainMondo.com

b. ICANN EPDP Phase 2
Next EPDP Meeting June 20 (agenda / docs), 14:00 UTC (10am EDT), June 13th notes and action items. June 20th meeting observers' info re: audiocast / phone. Links to the EPDP meetings' recordings and transcripts (when available) are posted on the GNSO calendar.  Other EPDP Links: wiki, mail list, GNSO mail list, worksheets, definitions. CPH comments on Purposes here (pdf).

UPDATE EPDP Meeting #7 20 June 2019: Chat transcriptAudio Recording; Zoom Recording. Does EPDP Phase 2 need a course correction? See excerpt below from Zoom June 20 transcript:

See also ICANN CEO June 18, 2019, Letter (pdf) re: "Planned ICANN org Communications to European Data Protection Board Regarding the Expedited Policy Development Process."

June 13th EPDP chat transcript (pdf) also gives the gist of what's going on:

From the EPDP public mail list:
"... I wanted to offer a thought that I hope will not be received as negative. A lot of the work that our group is doing cannot only be characterized as the community’s policy work, but it is in fact ICANN’s (org) compliance. Looking at the cost of becoming compliant, the easiest way to save money is to use synergies. We have asked in the past whether ICANN has written a record of processing activities, carried out DPIAs, asked for legal advice on related aspects etc. To my knowledge, we have not been provided with any such documentation. To be clear, it would be extremely helpful for our group to be able to review existing documents. Even though if our group might hold different views on certain questions, any existing work products would expedite our work. Maybe there are documents in the making, in which case we could build our workplan around potential delivery dates to be able to benefit from such work products. If there is actually no documentation already, it would be good to get clarity around that, too, and we could try to work so that duplicate efforts of the org and our group can be avoided, i.e. so that the org can benefit best from the legal advice we are seeking. Either way, when looking at where the money shall come from, I think it would be fair not to consider expenditures as the community’s policy making only, but as part of ICANN’s overall compliance activities. I hope this helps."--Thomas Rickert (ISPCP) (emphasis added).

UPDATE: Response from ICANN Org.

What's ahead? EPDP meetings will be at ICANN65 in Marrakech, Morocco, June 25 and June 27.

Also note:
Related:
  • Privacy Fix: Search and Destroy Old Email Accounts--an unused email address can be a backdoor to your entire digital life--consumerreports.org.
  • Afnic enhances and simplifies the handling of identity theft complaints--since 2017, Afnic has registered 102 complaints for identity theft by individuals when registering a domain name under the .fr ccTLD.--afnic.fr.

3) Names, Domains & Trademarks
graphic "Names, Domains & Trademarks" ©2017 DomainMondo.com
a. Trademarkia's trademark infringement complaint against LegalZoom: LegalForce Inc., d/b/a Trademarkia.com, alleges LegalZoom bought the domain name LegalZoomTrademarkia.com in 2012 and from 2014 to 2018 used it to direct people to LegalZoom.com.

b. Use of figurative signs and words that evoke a geographical area which is associated with a protected designation of origin may constitute an unlawful evocation of the latter. This was the CJEU’s conclusion in its judgment of 2 May 2019 concerning a legal dispute about the protected designation of origin for Manchego cheese (C-614/17)--limegreenipnews.com.

c. Kaddish.com: not long after Nathan Englander’s latest novel "kaddish.com" was published in March, someone actually developed the domain name kaddish.com offering mourners the same services as described in Englander’s book, and the author, reportedly thrilled, said, "The concrete joy of dreaming something up and as soon as it goes into the world, seeing someone actualize it, was purely joyous to me.” Turns out that the person behind the website kaddish.com, is a 65-year-old Orthodox lawyer from New Jersey, who said he registered the domain name 22 years ago after his father passed away, but it wasn’t until he read Englander’s “terrific” book, that he decided to develop and launch the website. Read more here.

4) ICYMI Internet Domain News 
graphic "ICYMI Internet Domain News" ©2017 DomainMondo.com
Cisco Live 2019: Cyberattacks Emerge Against the Internet Itself--threat intel group Talos discovered a Domain Name System attack ("Sea Turtle") that its director calls ‘incredibly concerning.’

"Mark Zuckerberg is a sociopath, and Facebook has institutionalized sociopathy" says NYU's Scott Galloway. See also Facebook is the 'biggest fraud in history' says Aaron Greenspan who studied at Harvard University with Mark Zuckerberg, in an interview with UK MPs over spread of fake news, basing his claims on his theory that Facebook has billions of fake accounts. See also:  Facebook Settles Class Action re: Inflated Video Viewership Metrics--ad agencies'  lawsuit claimed Facebook misstated video metrics by 150-900%.

The Clock runs down for passage of any (U.S.) federal privacy legislation this year--axios.com.

What Is a DNS Leak? A DNS Leak can compromise your online privacy and security. How to Check, Test & Fix? See this comprehensive guide which explains what DNS leaks are, what causes them, and how to prevent or fix them. Also: ipleak.net.

5) Most Read this past week on DomainMondo.com: 
graphic "Domain Mondo" ©2017 DomainMondo.com

-- John Poole, Editor  Domain Mondo 

feedback & comments via twitter @DomainMondo


DISCLAIMER

Domain Mondo archive