- The Department of Justice sent the Academy of Motion Picture Arts and Sciences a warning about its potential rule change that would limit Netflix and other streaming services from Oscar eligibility
- The DOJ says that the move could be a violation of antitrust law.
The Justice Department warned the Academy of Motion Picture Arts and Sciences that any attempts to prevent Netflix and other streaming services from receiving Oscar eligibility could be considered a violation of antitrust law.
Variety reported the news Tuesday, along with a copy of the DOJ’s message to Academy CEO Dawn Hudson. In the letter, dated March 21, 2019, the DOJ’s Antitrust Division chief Makan Delrahim said he was concerned the new rules would be written in a way that would “suppress competition.”
“In the event that the Academy — an association that includes multiple competitors in its membership — establishes certain eligibility requirements for the Oscars that eliminate competition without procompetitive justification, such conduct may raise antitrust concerns,” Delrahim wrote.
Delrahim specifically says that a rule change like this could violate Section 1 of the Sherman Act, which “prohibits anticompetitive agreements among competitors.”
“Accordingly, agreements among competitors to exclude new competitors can violate the antitrust laws when their purpose or effect is to impede competition by goods or services that consumers purchase and enjoy but which threaten the profits of incumbent firms,” Delrahim wrote.
Delrahim’s warning follows reports that Steven Spielberg, an Academy board member, was preparing to propose a rule change that would stop films that debut on streaming services or have limited theatrical releases from obtaining Oscar consideration.
Spielberg has been vocal about his views on streaming services and Oscar eligibility. He told ITV News last year that Netflix and other streaming services have boosted the quality of television. However, he added, “Once you commit to a television format, you’re a TV movie. … If it’s a good show—deserve an Emmy, but not an Oscar.”
“I don’t believe films that are just given token qualifications in a couple of theaters for less than a week should qualify for the Academy Award nomination,” he continued.
Netflix in particular, grabbed a lot of attention at the Oscars this year with “Roma,” which won awards for best director, best foreign language film, and best cinematography. The company responded to word of potential rule changes on Twitter last month, without naming Speilberg.
According to Variety, an Academy spokesperson said, “We’ve received a letter from the Dept. of Justice and have responded accordingly.”
The spokesperson said that the Academy’s Board of Governors will meet on April 23 for its annual awards rules meeting. At that meeting, all branches will submit possible updates for consideration.
Read the full DOJ letter here.
See what others are saying: (Variety) (The Wall Street Journal) (Rolling Stone)
SEC Releases Long-Awaited Report on January Memestock Frenzy, Pokes Hole in “Short Squeeze” Narrative
Among other findings, the SEC said hedge funds weren’t broadly damaged by January’s unprecedented trading event.
SEC Publishes Findings
The Securities and Exchange Commission released a long-awaited, 44-page report on Monday detailing its findings regarding this year’s “Memestock Frenzy,” which involved companies such as GameStop and AMC.
During the frenzy in late January, the share prices of those companies soared exponentially. According to one of the key narratives of the situation, smaller investors piled onto GameStop as a way to directly attack hedge funds that were actively betting against GameStop’s success and future. As CNBC reported at the time, those “hedge funds and other players had to rush in to cover their bets against the stock.”
What followed were reports that hedge funds had lost billions of dollars all at once. In fact, one notable hedge fund, Melvin Capital, received what many described as a nearly $3 billion bailout. Meanwhile, in June, it was reported that the London-based White Square Capital had shut down its main fund due to the losses it suffered in January.
However, now, the SEC has said there is no real evidence to support some of the key pillars of this narrative, including that hedge funds were substantially hurt in the long run.
“Staff believes that hedge funds broadly were not significantly affected by investments in GME and other meme stocks,” the agency said in its report. “Staff did not observe that any advisers to private funds and registered funds experienced liquidity issues or difficulties with counterparties.”
On the whole, hedge funds even saw a 1.2% increase in profits in January, according to data from the HFRI Fund Weighted Composite index.
The agency also noted that GameStop purchases to cover bets were just “a small fraction of overall buy volume,” adding that “GME share prices continued to be high after the direct effects of covering short positions would have waned.”
“The underlying motivation of such buy volume cannot be determined,” the agency concluded. “Perhaps it was motivated by the desire to maintain a short squeeze. Whether driven by [that] desire… or by belief in the fundamentals of GameStop, it was the positive sentiment, not the buying-to-cover, that sustained the weeks-long price appreciation of GameStop stock.”
SEC Not Currently Issuing Any Recommendation
The agency did not offer any policy recommendations with this report, though it did stress that a number of small-time investors who either initially bet against GameStop’s success or tried to ride the wave of gains saw significant losses.
Given that the number of investors trading GameStop rapidly jumped from 10,000 at the beginning of January to 900,000 by the end of the month, it’s not surprising that the FTC confirmed heavy losses for many.
With that in mind, the SEC aligned its next focus on commission-free trading apps and the way in which they promote potentially excessive trading. Notably, that includes apps such as Robinhood and Webull, both of which faced controversy during the frenzy for severely restricting users’ ability to trade so-called memestocks.
“Consideration should be given to whether game-like features and celebratory animations that are likely intended to create positive feedback from trading lead investors to trade more than they would otherwise,” the SEC said in its report.
SEC Chair Gary Gensler said Tuesday that by April, the agency could propose rules limiting how those apps make money from each trade, which is known as “payment for order flow.”
See what others are saying: (The LA Times) (The Washington Post) (The Wall Street Journal)
Supply Chain Issues Trigger Price Hikes, School Lunch Shortages, and More
Many news outlets have cited experts warning of supply chain issues affecting holiday spending, but the consequences of ongoing bottlenecks are already being felt across the country.
Schools Struggle for Food
A host of supply chain bottlenecks are affecting products and businesses throughout the U.S., forcing prices of goods and services to rise.
In Colorado, the Denver Public Schools system said it’s struggling to make sure it has enough milk for students on a daily basis, Insider reported Sunday. In fact, the schools are so short on milk cartons they’ve now resorted to asking students to bring refillable water bottles instead.
“When the milk is available, we are prioritizing serving milk at breakfast at all schools and at our elementary schools for lunch,” Theresa Hafner, DPS executive director of Food Services, told Insider in an email.
Meanwhile, other schools are struggling to find additional lunch-related supplies including meats, orange juice, meal trays, and plastic cutlery.
According to NBC News, Shonia Hall, director of school nutrition services for Oklahoma City Public Schools, even found herself needing to make a run to a local Sam’s Club to purchase 60,000 spoons and forks each just “to get us through for a few days in hopes the truck would show up.”
“It’s an additional cost to your budget, to your program,” she added.
Zillow Pauses House Buying
The issues also extend to the housing market, as both labor and supply shortages have led to operational backlogs for renovations and closings.
Zillow cited those issues Sunday when announcing that it would stop buying homes at least through December. Instead, the company said it plans to first prioritize the selling of its current catalog of homes.
“We’re operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces,” Jeremy Wacksman, Zillow’s chief operating officer, said in a statement cited by Yahoo! Finance.
Zillow’s share price fell as much as 11% from around $94 to around $84 early Monday as investors pulled out of the company.
What’s Causing the Issues?
U.S. companies are having a hard time stocking their shelves with certain products and keeping prices from rising largely because of factors induced by the pandemic.
The first and most basic issue is that last year, most consumer spending halted amid COVID-19 lockdowns in March. Around that same time, many companies were forced to scale back production and lay off workers.
However, more people are now returning to the outside world, and with that comes a boost in shopping. Still, several businesses have found themselves unable to ramp up production to meet the increased and arguably unprecedented demand.
In addition to production issues, there are numerous transportation challenges. For example, a large wave of businesses have struggled for months to fill open positions. One such industry where that’s being acutely felt is trucking.
In fact, the country is so stressed for drivers to haul freight that at least one high school in California has now launched a program to train seniors to drive big rigs.
Meanwhile, Walmart, UPS, and FedEx all made 24/7 transportation commitments last week.
The supply chains problems don’t stop with ground transportation. One of the most pressing situations seen so far involves the problems at the Ports of Los Angeles and Long Beach in California, where container ships are backed up.
Pre-pandemic, it was fairly unusual for any cargo ship to be seen waiting off the coast to get into one of the two ports, which process 40% of all shipping containers entering the U.S. Now, dozens of ships have been waiting weeks to get in.
Even once they unload, there’s another major backlog involving shipping containers at the ports. Because of those combined issues, Long Beach extended its operational hours in September.
President Joe Biden later announced on Oct. 13 that L.A.’s port will “operat[e] around the clock 24/7” as part of a “90-day sprint” to clear a path for cargo.
Supply chain issues are expected to impact holiday shoppers, but many analysts expect the problems to extend well into 2022. Transportation Secretary Pete Buttigieg echoed that prediction on Sunday during an appearance on CNN.
See what others are saying: (NBC News) (Insider) (Wall Street Journal)
Facebook Is Reviewing More Than 2,200 Hours of Footage for Next-Gen AI
The project, which could prove to be revolutionary, is already raising some big privacy concerns.
Facebook’s Next-Gen AI
Facebook announced Thursday that it has captured more than 2,200 hours of first-person video that it will use to train next-gen AI models.
The company said it aims to make the AI, called Ego4D, capable of understanding and identifying both real and virtual objects through a first-person perspective using smart glasses or VR headsets. In effect, that could potentially help users do everything from remembering where they placed forgotten items to recording others in secret.
Facebook listed five key scenarios the project aims to tackle and gave real-world examples of how each may look for people who will eventually use the AI.
- “What happened when?” With that scenario, Facebook gave the example, “Where did I leave my keys?”
- “What am I likely to do next?” There, Facebook gave the example, “Wait, you’ve already added salt to this recipe.”
- “What am I doing?” For example, “What was the main topic during class?”
- “Who said what when?” For example, “What was the main topic during class?”
- “Who is interacting with whom?” For example, “Help me better hear the person talking to me at this noisy restaurant.”
Facebook said the amount of footage it has collected is 20 times greater than any other data set used by the company.
In the wake of recent controversy surrounding Facebook, it’s important to note that the footage wasn’t reaped from users. Instead, the company said it, and 13 university partners, compiled the footage from more than 700 participants around the world.
Still, that hasn’t alleviated all privacy concerns.
In an article titled, “Facebook is researching AI systems that see, hear, and remember everything you do,” The Verge writer James Vincent said that although the project’s guidelines seem practical, “the company’s interest in this area will worry many.”
Vincent pointe out that the AI announcement doesn’t mention anything in the way of privacy or removing data for people who may not want to be recorded.
A Facebook spokesperson later assured Vincent that privacy safeguards will be introduced to the public in the future.
“For example, before AR glasses can enhance someone’s voice, there could be a protocol in place that they follow to ask someone else’s glasses for permission, or they could limit the range of the device so it can only pick up sounds from the people with whom I am already having a conversation or who are in my immediate vicinity,” the spokesperson said.
Among positive reception, some believe the tech could be revolutionary for helping people around the house, as well as for teaching robots to more rapidly learn about their surroundings.