Antitrust
Legal Experts See AOL Gains In Microsoft Suit
     AOL Time Warner's decision to sue Microsoft in a private antitrust lawsuit offers considerable promise for AOL to torment its software rival and potentially recoup billions of dollars in court, said several antitrust legal experts. Filed in federal court in Washington, the new lawsuit piggybacks on the antitrust case against Microsoft by the Justice Department and 18 state attorneys general. The case is filed in Netscape Communications' name and does not mention America Online, which acquired Netscape in 1999. In addition to restating the claim that Microsoft illegally maintained its Windows operating monopoly -- a conclusion affirmed by the D.C. Circuit Court of Appeals -- the lawsuit resurrects claims dismissed by the appeals court and adds four new claims concerning recent actions by Microsoft.

Antitrust
Antitrust Group Demands Details On Proposed Microsoft Deal
     The Justice Department must explain why it rejected harsher alternative remedies to settle its antitrust suit against Microsoft and provide more documentation about its decision-making process, according to a lawsuit the American Antitrust Institute (AAI) filed in federal district court in Washington. The lawsuit, which AAI officials presented as an attempt to enforce language of the little-used 1974 Tunney Act, also demands that Microsoft describe all communications between the company and the government, including members of Congress and their staffs. The lawsuit already has been assigned to Judge Colleen Kollar-Kotelly, who has jurisdiction over both the settlement proposal and the continuing lawsuit against Microsoft by nine state attorneys general. Last year she said she would begin the Tunney Act proceeding before starting a trial on remedies. That trial is set to begin March 11

Crime
FBI Official Laments Restrictions On Information Sharing
     Federal agencies want to expand their databases and the information available to state and local law enforcement officials but are hamstrung by laws that Congress should amend, an FBI official said. Since the Sept. 11 terrorist attacks, state and local officials have criticized the lack of federal information on terrorist threats and the timeliness in providing it. Officials like FBI Director Robert Mueller have said agencies are striving to make more information available. Kathleen McChesney, an executive assistant director for the FBI, told the U.S. Conference of Mayors' Federal-Local Law Enforcement Committee on Wednesday that the agency is lobbying Congress to extend the reach of databases such as the National Crime Information Center.

Privacy
FTC Unveils New Component Of Privacy Enforcement
     Following through on a key component of the agenda of privacy enforcement FTC Chairman Timothy Muris announced in October, the agency proposed the creation of a national "do-not-call" registry that will permit consumers to opt out of receiving most telemarketing calls. In addition to the national list -- which telemarketers would be required to check every month -- Howard Beales, director of the FTC's Bureau of Consumer Protection, announced several other proposed changes to telemarketing rules, including a prohibition on businesses disclosing customer billing and account information to third-party telemarketers. But for companies subject to FTC jurisdiction, the rule contains few exceptions and would not preempt separate do-not-call laws in the states. The question of federal preemption of state laws has played a key role in the debate over online privacy, with some business groups and legislators urging federal privacy laws in order to avoid state-based regulation.

Fraud
FTC Ranks ID Theft, Net Fraud As Top Consumer Problems
     Identity theft and Internet fraud rank as the top problems plaguing U.S. consumers, federal regulators said. According to new statistics from the FTC's consumer database, identity theft ranked as the No. 1 consumer complaint last year. Some 42 percent of the more than 200,000 fraud complaints involved identity theft -- the act in which an unknown assailant steals a consumer's information and forges the individual's identity to open fraudulent bank or retail accounts. ID theft significantly outpaced nearly every other complaint among the FTC's top 10. But nearly 10 percent of consumers also tagged Internet auctions and 7 percent cited Internet computer services as major problems. Those categories rounded out the top three of the FTC's 2001 Consumer Trends report.

Labor
Information Technology Key Driver Of Labor Productivity
     Despite the slumping economy, labor productivity grew in 2001 largely due to the contribution of information technology, and that is a trend that likely will continue, a panel of experts said. A number of economists, including Federal Reserve Board Chairman Alan Greenspan, agree that IT innovations and equipment helped bolster the productivity rate -- that is, the ratio of product output divided by the number of hours or resources required in production. Daniel Sichel, a senior economist with the Fed, told an audience at a conference hosted by the Woodrow Wilson Center that those productivity gains are likely to be sustained. "[Information technology] has been one of the key drivers, if not the key driver, behind labor productivity growth," he said. In collaboration with fellow economist Steven Oliner, he added, "We find that that story remains intact."

Telecom
Bells' Competitors Seek FCC Rules On Broadband Link
     The FCC should set standards governing the critical link that allows telecommunications carriers to provide high-speed Internet service to their customers, according to a group representing competitors of the Bell regional telephone companies. The Joint Competitive Industry Group on Tuesday filed comments with the FCC seeking specific measurements to ensure that the Bells treat competing firms fairly. The Bells "do a poor job of providing special-access service" to competitive firms, Donna Sorgi, vice president of federal advocacy at WorldCom, said during a conference call.