BP Scores Twice in Oil Spill Litigation | Courthouse News Service

BP won two rounds in its massive oil spill litigation when the federal judge overseeing the cases ruled that lead plaintiffs in property damage lawsuits cannot include racketeering claims, and that a lawsuit from BP business partner Anadarko Petroleum must be arbitrated.

U.S. District Judge Carl Barbier granted BP’s motion to dismiss a consolidated oil spill complaint brought under the RICO Act, calling plaintiffs’ inability to show a direct link between BP business practices and the economic damages sought the “fatal flaw in their RICO claims.”

The plaintiffs claimed that damages to property and business losses caused by the oil spill would not have happened if BP had not “defrauded government regulators in connection with the safety of its drilling operations, its ability to respond to any oil spill, and its response to the spill at the Macondo well.”

Judge Barbier ruled that a direct relationship between the alleged fraud and the plaintiffs’ injuries was required for a RICO complaint to stand.

That ruling does not affect the hundreds of other lawsuits seeking property damages, personal injury and other economic losses still pending in Barbier’s court.

via Courthouse News Service.

U.S. Regulators Face Budget Pinch as Mandates Widen – NYTimes.com

Government regulators on the Wall Street beat have long been outnumbered and outspent by the companies they are supposed to police. But even after receiving budget increases from Congress last month, regulators are still falling behind.

The Securities and Exchange Commission and the Commodity Futures Trading Commission are struggling to fill crucial jobs, enforce new rules, upgrade market surveillance technology and pay for travel.

On a recent trip to New York to tour a trading floor, a group of employees from the commodities watchdog rode Mega Bus both ways, arriving late to their meeting despite a 5:30 a.m. departure. The bus, which cost $30 a person round trip, saved the agency roughly $1,000 over Amtrak.

“We spent hundreds of billions of dollars on a hideous bailout, and now we’re not going to fund reforms to prevent another one,” said Bart Chilton, a commissioner with the agency.

The money squeeze comes as Wall Street regulators take on added responsibilities in the wake of the financial crisis, including monitoring hedge funds, overseeing the $600 trillion derivatives market and other tasks mandated by the Dodd-Frank law.

via U.S. Regulators Face Budget Pinch as Mandates Widen – NYTimes.com.

DOJ may pounce on Google’s ITA acquisition – Computerworld

The U.S. Department of Justice is looking into challenging Google’s plan to buy travel software company ITA Software, according to reports.

The DOJ is putting together the necessary paperwork but lawyers there have yet to decide whether there are sufficient antitrust concerns to proceed with a court case, the Wall Street Journal reported today, citing unnamed sources.

The Justice Department is expected to decide whether to take the matter to court by the end of this month or in early February, the Journal noted.

Google announced its plan to acquire ITA last July.

ITA is a travel-software company that supplies popular Internet airline-ticket search and booking sites, such as Orbitz, Southwest Airlines and American Airlines. The Cambridge, Mass.-based company was founded in the mid-90s by MIT computer science graduates.

The government regulators might oppose the deal because ITA’s products are used in the systems of many online travel agencies and airlines.

via DOJ may pounce on Google’s ITA acquisition – Computerworld.

After Google incident, Wi-Fi data collection goes on – Computerworld

Four months ago, amidst a backlash from government regulators and privacy advocates, Google stopped collecting Wi-Fi data with its Street View cars. But that doesn’t mean Google has stopped collecting wireless data altogether, and neither have other companies such as Apple.

Instead of sending out cars to sniff out wireless networks, Google is now crowdsourcing the operation, with users of its Android phones and location-aware mobile applications doing the reconnaissance work for it. In the past few months, Apple has quietly started building a similar database, leveraging its large base of users to log basic Wi-Fi data.

There are others: A Boston company, Skyhook Wireless, has been logging wireless access points for years, as has its competitor, Navizon of Miami Beach, Florida.

It’s a trend that’s been spurred by the intense interest in applications such as FourSquare and Facebook Places. As it becomes increasingly important for programs that run on your phone to know exactly where you are — to be location-aware in industry parlance — having a way of figuring out exactly where you are becomes critical. But the companies collecting this data haven’t come under much scrutiny, many users do not understand how the data is being collected or why, and security experts are just now starting to discover some of the ways that this information could be misused.

via After Google incident, Wi-Fi data collection goes on – Computerworld.

Protecting The Data You Don’t Even Know You Have – Computerworld

Let’s assume for a moment that Google’s collection of Wi-Fi “payload” data really was unintentional. And that Google never used the data, didn’t even know it was there and stored it securely. Is it actually a privacy leak if no one has looked at the private data?

That, of course, is a question for lawyers and courts and government regulators.

Now consider: What happens when the various lawyers and courts and government agencies around the world investigating Google’s Wi-Fiasco demand to look at the data Google collected?

It becomes a privacy leak.

After all, in order to see whether there’s any personally identifiable or sensitive data in Google’s big pile o’ Wi-Fi data, somebody has to invade the privacy of the people whose data has been collected. And the prime candidates are litigators, politicians and bureaucrats.

Isn’t that comforting?

This isn’t a defense of Google. Google failed. That has become clear in the month since the search giant admitted that the cars collecting photos for its Street View feature were also collecting samples of the Wi-Fi signals near the cars — and those samples contained actual snippets of any unencrypted Wi-Fi network traffic.

Google failed in many ways, but perhaps its biggest failure was this: It collected data it didn’t know it was collecting. That may sound innocuous. It’s not. It’s an epic failure of good data-management policy.

Look, if you don’t know what you’ve got, you can’t manage it. You can’t keep it secure or retain it as long as you legally should, because you don’t know which rules apply.

Google spent years collecting it-didn’t-know-what. Now it will be paying the price for years — in bad publicity, investigations and lawsuits.

via The Data You Don’t Even Know You Have – Computerworld.

Apple vulnerable in iTunes antitrust probe – Computerworld

Federal antitrust regulators may be able to build a case against Apple over its iTunes business because the company has a dominant share of the U.S. music download market, an antitrust lawyer said today.

The Department of Justice is reportedly in the early stages of an investigation of Apple’s business practices, in part because of a complaint that the company pressured music labels to pull support of Amazon’s “MP3 Daily Deal,” a promotion in which the online retailer received exclusive access to new tracks.

Apple has an estimated 70% share of the U.S. retail digital music download market, significantly larger than Amazon and Wal-Mart, which each account for 12% of all sales.

And the size of Apple’s share matters to the government, said Hillard Sterling, an antitrust attorney at Chicago-based law firm Freeborn & Peters LLP.

“This has much stronger promise than the mobile device case because Apple’s market share in digital music is much more attractive to government regulators,” said Sterling, referring to reports earlier this month that officials at the DOJ and the Federal Trade Commission (FTC) are also looking into Apple’s ban of third-party development tools for creating iPhone software.

“The DOJ seems to be sniffing around for a stronger foundation for an antitrust case,” Sterling said. “And 70% is sufficient market share to raise the specter of a monopoly. It’s a strong indicator to the government.”

via Apple vulnerable in iTunes antitrust probe – Computerworld.