The Morning Dispatch: What’s Next for Facebook

Plus: The House votes to create a select committee to investigate January 6.

(Photo Illustration by Rafael Henrique/SOPA Images/LightRocket/Getty Images)

Happy Thursday! We are somehow already in the seventh month of 2021. How is this possible?

Quick Hits: Today’s Top Stories

  • The House of Representatives voted almost entirely along party lines to form a select committee to investigate the January 6 riots at the U.S. Capitol. Two Republicans—Reps. Liz Cheney and Adam Kinzinger—voted in favor.
  • The NCAA on Wednesday announced the reversal of its longstanding policy preventing student athletes from profiting off their names, images, and likenesses. The new rules go into effect today.
  • The New York Times reports that a grand jury in Manhattan has indicted the Trump Organization and its chief financial officer in connection to a tax investigation. The indictment is expected to be unsealed later today.
  • The official death toll in the Surfside, Florida, condominium collapse had risen to 18 as of Wednesday evening, and approximately 145 people remain unaccounted for as the rescue mission continues into its seventh day.
  • The Pennsylvania Supreme Court on Tuesday overturned Bill Cosby’s 2018 indecent assault conviction on the grounds that prosecutors had violated his rights against self-incrimination. The decision allowed the comedian to walk free after serving three years of his three-to-10-year sentence for drugging and assaulting Andrea Constand in 2004. A total of 60 women have come forward with similar allegations.
  • Donald Rumsfeld, secretary of defense under former presidents Gerald Ford and George W. Bush, died Wednesday at the age of 88.
  • Mississippi State beat defending national champion Vanderbilt 9-0 in Game 3 of the 2021 College World Series last night, landing the Bulldogs their first national championship in any team sport.
  • The United States confirmed 12,834 new cases of COVID-19 yesterday per the Johns Hopkins University COVID-19 Dashboard, with 2.8 percent of the 462,334 tests reported coming back positive. An additional 262 deaths were attributed to the virus on Wednesday, bringing the pandemic’s American death toll to 604,698. According to the Centers for Disease Control, 11,948 Americans are currently hospitalized with COVID-19. Meanwhile, 1,368,679 COVID-19 vaccine doses were administered yesterday, with 180,674,739 Americans having now received at least one dose.

Facebook Skates Free—For Now 

Bashing Big Tech is in vogue these days across the political spectrum. But proponents of actually reining in the country’s most successful technology companies hit a wall earlier this week when a federal judge dismissed a pair of antitrust lawsuits brought against Facebook late last year by the Federal Trade Commission (FTC) and 46 state attorneys general.

(Reminder: The Dispatch is a participant in Facebook’s fact-checking program.)

“The FTC has failed to plead enough facts to plausibly establish … that Facebook has monopoly power in the market for Personal Social Networking (PSN) Services,” U.S. District Judge James Boasberg wrote in his opinion, released before a trial in the cases had begun. “PSN services are free to use, and the exact metes and bounds of what even constitutes a PSN service—i.e., which features of a company’s mobile app or website are included in that definition and which are excluded—are hardly crystal clear. In this unusual context, the FTC’s inability to offer any indication of the metric(s) or method(s) it used to calculate Facebook’s market share renders its vague ‘60%-plus’ assertion too speculative and conclusory to go forward.”

Boasberg—nominated to his post by former President Barack Obama in 2010 and confirmed unanimously by the Senate the following year—granted the FTC 30 days to file an amended lawsuit, but dismissed the state AGs’ case entirely because it pertained to the acquisitions of Instagram and WhatsApp that were made nearly a decade ago.

Facebook—whose market cap surged past $1 trillion for the first time following the news—took a victory lap, claiming the decision showcased the “defects” of the FTC’s argument against the company. “We compete fairly every day to earn people’s time and attention and will continue to deliver great products for the people and businesses that use our services,” its statement read.

The ruling was not unexpected given American antitrust law’s adherence to the consumer welfare standard, which promotes a more hands-off approach to competition policy as long as a company’s market power does not harm consumers in the form of higher prices or lower output. Because Facebook’s main product is free (though critics often argue you “pay” for it with your personal data), proving consumers are harmed by its dominant market share in “personal social networking”—if you can even prove it has a dominant market share—is exceedingly difficult.

Republicans Get the Partisan January 6 Commission They Opted For

When Senate Republicans—at the urging of Minority Leader Mitch McConnellmoved several weeks ago to filibuster the creation of a bipartisan, independent commission to investigate the events surrounding January 6, they did not doom an investigation into that day—they ensured that when an investigation did occur, it would not be bipartisan or independent.

Nearly one month after the bill establishing that commission failed to advance, the House on Wednesday voted 222-190 to create its own select committee tasked with “investigat[ing] and report[ing] upon the facts, circumstances, and causes relating to the January 6, 2021, domestic terrorist attack upon the United States Capitol Complex.” Although 10 House Republicans voted to impeach former President Donald Trump in January and 35 voted to establish the commission back in May, just two—Reps. Liz Cheney and Adam Kinzinger—signed onto Pelosi’s select committee yesterday.

“I’m heartbroken that we don’t have the bipartisan commission,” Pelosi said in a floor speech. “We yielded on every point: The [numbers], the process for subpoenas, the timing—and further yielded on the Senate side on timing again, as well as clarification on staffing. … Hopefully, [a bipartisan commission] could still happen, but in the meantime, we will have a select committee.”

Pelosi’s first stab at creating a  9/11-style commission to investigate January 6 was overtly partisan, a fact that made Republicans who favored a commission skeptical of her motivations and Republicans inclined to oppose  it even more determined to block those efforts. But the final bill that the House voted on was not a partisan proposal. The top two members on the House Homeland Security Committee—Rep. Bennie Thompson, a Democrat, and Rep. John Katko, a Republican—had hammered out a proposal that was truly bipartisan. From TMD last month:

“[It] would feature 10 members: Five appointed by Pelosi and Senate Majority Leader Chuck Schumer, and five appointed by McConnell and House Minority Leader Kevin McCarthy. The commission would have subpoena powers to compel witness testimony, but those powers could only be exerted when the commission’s Democratic chair and Republican vice chair agreed, or if a majority of the panel (again requiring at least one Republican to side with Democrats, or vice versa) voted for it. To avoid investigations dragging into election season, the commission would be required by law to submit its final report to Congress and President Biden by the end of this year.

The House’s new select committee abides by a whole different set of rules. Pelosi will appoint 13 members to the committee (five “in consultation” with Minority Leader Kevin McCarthy), and designate one as the chair, who is authorized to subpoena witnesses without any Republican input. The select committee also has no end date, meaning it could (and likely will) drag into election season.

Worth Your Time

  • Writing in The Week, Damon Linker breaks down a study published by the Survey Center on American Life last week that contained a notable and depressing finding.: The number of Americans who report having no close friends has skyrocketed since 1990, from 3 to 15 percent of men and from 2 to 10 percent of women. Moving so much of our lives online, Linker writes, has changed the way many of us form relationships: “People sharing similar interests, hobbies, quirks, and obsessions can easily find each other online and enjoy a digital facsimile of friendship with others. These virtual communities are more like collective groups of topic-specific pen pals than real-world friendships.” This is bad news for each of us personally, but also for the function of society and politics at large: “A nation of increasingly lonely, friendless citizens given outlets to find collective, communal fulfillment online will be a nation spawning a range of radical political factions, groups, or movements defined by and drawing the bulk of their cohesion from their loathing of other factions, groups, or movements.”
  • The Atlantic’s Tim Alberta is always worth reading, but his latest profile is a particular triumph. It tells the story of Michigan state Sen. Ed McBroom, the rock-ribbed Republican who chairs the state’s Oversight Committee and, who in recent months has spent significant time enthusiastically investigating whether claims of 2020 voter fraud in the state have any validity. His ultimate conclusion—that the allegations in question are demonstrably false, and that those who continue to push them do so for nefarious reasons—have made him a personal target of former President Trump and those who continue to carry water for his claims of election fraud. What comes through most is his dismay: “It’s been very discouraging, and very sad, to have people I know who have supported me, and always said they respected me and found me to be honest, who suddenly don’t trust me because of what some guy told them on the internet.”

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Toeing the Company Line

  • Scott Lincicome’s latest Capitolism(🔒) tackles a policy area that’s suddenly having a bipartisan moment: antitrust enforcement. Scott offers several reasons for why the antitrust train ought to slow down a bit—from the market’s own ability to break down supposed monopolies to the threat of enforcement abuse and state-sanctioned anti-competitive behavior.
  • Yesterday’s episode of The Dispatch Podcast breaks down New York City’s election fiasco, Vice President Kamala Harris’ recent visit to the U.S.-Mexico border, the latest on infrastructure negotiations, and recent reporting on Bill Barr and the last days of the Trump administration.
  • The NCAA voted Wednesday to allow athletes to profit from their name, image, and likeness. Price explains what that means—and how the patchwork of state laws and interim NCAA policy is bound to create some confusion.
  • Sure, we all cringe when a celebrity grovels to appease China, and pretend to be horrified when countries apologize for offending the Chinese Communist Party. Do you know what else we do? We buy Chinese products and invest in Chinese companies. Danielle Pletka lays out how individuals, governments, and allied nations can push back on Chinese aggression.

Reporting by Declan Garvey (@declanpgarvey), Andrew Egger (@EggerDC), Charlotte Lawson (@charlotteUVA), Ryan Brown (@RyanP_Brown), Harvest Prude (@HarvestPrude), Tripp Grebe (@tripper_grebe), Emma Rogers (@emw_96), Price St. Clair (@PriceStClair1), Jonathan Chew (@JonathanChew19), and Steve Hayes (@stephenfhayes).