Legal News for Weds 10/2 - Google Renewed Antitrust Suit Over Voice Assistants, Amazon NLRB Case Paused, US Port Strike Disrupts Ocean Shipping

Minimum Competence

This Day in Legal History: The Amsterdam Treaty Broadens the EU

On October 2, 1997, the Amsterdam Treaty was signed by European Union (EU) delegates, marking a significant step in the evolution of the EU's institutional framework and policy ambitions. The treaty aimed to enhance the efficiency, transparency, and democratic legitimacy of the Union, amending previous agreements like the Maastricht Treaty. One of its key features was strengthening the powers of the European Parliament, giving it greater legislative influence through the co-decision procedure, which allowed it to act as an equal legislator with the Council of the European Union.

The Amsterdam Treaty also laid the groundwork for the EU’s Common Foreign and Security Policy (CFSP), aiming for more coordinated diplomatic actions and international influence. It introduced the role of the High Representative for the CFSP to improve coherence in foreign policy. Additionally, the treaty made strides in areas such as justice and home affairs, addressing issues like asylum, immigration, and judicial cooperation across member states. The treaty was also a response to the anticipated enlargement of the EU, as post-Communist countries in Eastern Europe were expected to join, requiring institutional reforms to manage an expanded Union. The Amsterdam Treaty signaled a shift toward a more integrated and politically unified Europe, preparing the EU for the challenges of a growing membership and a more globalized world.

Alphabet Inc.'s Google is facing a renewed antitrust lawsuit from Sensory Inc., a voice recognition technology company, accusing the tech giant of monopolistic practices in the voice assistant market. Sensory alleges that Google used its dominance in general search to create barriers preventing consumers from using alternative voice assistants and wakeword software to access non-Google search engines. This lawsuit revives a previous case from April 2022, which was paused to allow other antitrust litigation against Google to proceed.

In August, the US District Court for the District of Columbia ruled that Google had illegally monopolized the search market through exclusivity agreements. Sensory claims Google extended this behavior by preventing hardware manufacturers from allowing consumers to choose competing voice assistants with non-Google search engines. Sensory also argues that Google imposes restrictions on wakeword technology in various devices, including smartphones, home electronics, and cars, ensuring competitors like Siri and Bixby default to Google's search engine. Google has not yet commented on the case.

Google Hit With Renewed Antitrust Suit Over Voice Assistants

The US Court of Appeals for the Fifth Circuit has paused a National Labor Relations Board (NLRB) case involving Amazon, following claims that the agency violates constitutional principles. Amazon argues that the NLRB breaches the separation of powers by acting as both prosecutor and judge, after it rejected Amazon's objections to a union election at a Staten Island warehouse. Amazon sought an emergency injunction to halt the NLRB's internal litigation regarding its refusal to bargain with the union. When a lower court didn’t rule on the request, Amazon appealed to the Fifth Circuit, which had recently blocked a similar case involving SpaceX.

Amazon’s lawsuit challenges the constitutional structure of the NLRB, claiming its members are unconstitutionally shielded from removal by the president and that the agency's quasi-judicial powers violate the Seventh Amendment’s guarantee of a jury trial. This case is part of a broader wave of constitutional challenges to the NLRB’s authority. Neither Amazon nor the NLRB have commented on the ruling.

Fifth Circuit Halts Amazon NLRB Case Over Constitutional Dispute

The Biden administration is pressuring U.S. port employers to improve their offer to striking dockworkers from the International Longshoremen's Association (ILA). The strike, now in its second day, has disrupted shipping across dozens of ports from Maine to Texas, affecting goods from food to automobiles and causing significant economic strain. With over 38 ships waiting to dock, the strike could cost the U.S. economy $5 billion per day. Despite a 50% wage hike offer from the United States Maritime Alliance (USMX), the ILA, led by Harold Daggett, is demanding more, including a $5 hourly raise per year and a halt to port automation projects.

President Biden has urged foreign ocean carriers, which profited during the pandemic, to agree to a fair contract, while the administration monitors for price gouging. Retailers have initiated backup plans to mitigate potential impacts on the holiday season. Economists warn that while the strike could raise inflation, the broader economic effects depend on its duration. The National Retail Federation and some Republicans are calling on Biden to halt the strike, but he has refused.

US port strike backed by White House | Reuters

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe