Judge approves $26 billion merger of T-Mobile and Sprint

Shares of Sprint soared Tuesday after a U.S. district judge ruled in favor of its $26 billion deal to merge with T-Mobile.

The stock was up 77.7% Tuesday. It had risen in extended trading Monday after The Wall Street Journal reported the judge was expected to rule in favor of the deal. Shares of T-Mobile were up 11.8%.

The ruling clears one of the final hurdles for the deal, which still can’t close until the California Public Utilities Commission approves the transaction. Tuesday’s ruling also culminates a yearslong courtship between Sprint and T-Mobile, which have made multiple attempts over the years to merge, only to abandon their plans fearing regulatory scrutiny.

Attorneys general from New York, California, Connecticut, Hawaii, Illinois, Maryland, Michigan, Minnesota, Oregon, Wisconsin, Massachusetts, Pennsylvania, Virginia and the District of Columbia originally brought the lawsuit to block the deal following approval from the Justice Department and the Federal Communications Commission. The states had argued that combining the No. 3 and No. 4 U.S. carriers would limit competition and result in higher prices for consumers. The companies had contended their merger would help them compete against top players AT&T and Verizon, and advance efforts to build a nationwide 5G network.

In his decision filed Tuesday, Judge Victor Marrero wrote, “The resulting stalemate leaves the Court lacking sufficiently impartial and objective ground on which to rely in basing a sound forecast of the likely competitive effects of a merger.”

The judge laid out three points on which the court rejected the states’ objections to the merger. First, he said, they failed to convince the court that the merged party “would pursue anticompetitive behavior that, soon after the merger, directly or indirectly, will yield higher prices or lower quality for wireless telecommunications services.”

Second, the court rejected that Sprint would be able to continue operating effectively as a wireless services competitor without the merger.

“The Court is thus substantially persuaded that Sprint does not have a sustainable long-term competitive strategy and will in fact cease to be a truly national [mobile network operator],” the ruling said.

And finally, the court rejected the states’ argument that Dish Network “would not enter the wireless services market as a viable competitor nor live up to its commitments to build a national wireless network.” The deal called for Dish to step in as a new wireless player based on agreements with the DOJ and FCC. Shares of Dish were up 7.1% on the judge’s ruling.

In a statement after the ruling, New York Attorney General Letitia James, who helped lead the states’ push, said the states “disagree with this decision wholeheartedly, and will continue to fight the kind of consumer-harming megamergers our antitrust laws were designed to prevent.” She called the ruling a “loss” for Americans who rely on wireless networks and said the states will review their options, including a potential appeal.

“From the start, this merger has been about massive corporate profits over all else, and despite the companies’ false claims, this deal will endanger wireless subscribers where it hurts most: their wallets,” James said.

California Attorney General Xavier Becerra, who also led the states’ efforts, said in a statement: “Our fight to oppose this merger sends a strong message: even in the face of powerful opposition, we won’t hesitate to stand up for consumers who deserve choice and fair prices. We’ll stand on the side of competition over megamergers, every time. And our coalition is prepared to fight as long as necessary to protect innovation and competitive costs.”

Makan Delrahim, who leads the DOJ Antitrust Division, said in a statement he was “grateful that the judge recognized the expertise of the Department of Justice and the Federal Communications Commission (FCC) in his evaluation of the transaction.”

The case has seemed to escalate tensions between some of the state attorneys general and the DOJ, who are each pursuing investigations into Google. “As I have noted before, should a minority group of states, or even one, be able to undo the nationwide relief secured by the federal government, it would wreak havoc on parties’ ability to merge, on the government’s ability to settle cases, and cause real uncertainty in the market for procompetitive mergers and acquisitions,” said Delrahim, who is recused from the DOJ’s Google probe.

Top executives at T-Mobile and Sprint claimed a victory with the judge’s ruling.

″[N]ow we are finally able to focus on the last steps to get this merger done!” T-Mobile CEO John Legere said in a statement.

T-Mobile and Sprint agreed to certain concessions to the government before the agencies cleared the deal. The companies told the FCC they would deploy a 5G network covering 97% of the U.S. population within three years of closing the deal. Sprint also agreed to sell Boost Mobile, Virgin Mobile and other prepaid phone businesses, as well as some of its wireless spectrum to Dish for $5 billion before gaining approval from the Justice Department.

FCC Chairman Ajit Pai said in a statement that he was “pleased” with the court’s ruling and that the merger “will help close the digital divide and secure United States leadership in 5G,” calling it “a big win for American consumers.”

Dish co-founder and Chairman Charlie Ergen said in a statement that the ruling and approvals from the DOJ and FCC
“accelerates our ability to deploy the nation’s first virtualized, standalone 5G network and bring 5G to America.”

If approved by the California commission, the deal would create a new wireless competitor in Dish, which has tried for years to become a provider, spending billions on airwaves it has stored away. Under a previous deal between Dish and the DOJ and FCC, the company had a deadline this year to build a narrowband internet of things network connecting “people and sensors and microprocessors.” If the deal clears, Dish will instead focus its efforts on building a 5G network covering 20% of the country by June 2022 and 70% of the U.S. population by June 2023, with the consequence of facing a $2.2 billion payment to the U.S. Treasury if it fails to live up to its commitments.

Legere, the T-Mobile CEO, announced last year that he would step down from the role and be succeeded by President and COO Mike Sievert. Legere had been expected to leave once the company’s merger with Sprint was completed. Sprint and T-Mobile had initially said Legere would lead the combined company when they announced their intention to merge in April 2018.

Southwest flight attendants tell passengers to call out ‘unwelcome behavior’ as part of new policy

Stop messing around on airplanes.

While airlines aren’t known for welcoming malarkey during the flight, one airline is taking a proactive approach to preventing it. During their pre-flight emergency briefing, passengers are specifically reminded to let flight attendants know about any “unwelcome behavior.”

A member of Southwest’s communications team confirmed the updated policy to Fox News. According to them, “Southwest’s pre-flight Emergency Briefing and Demonstration is now written to conclude with: ‘We are here for your comfort and safety. Please report any unwelcome behavior to a flight attendant.’”

Their statement continued to say, “This change reflects Southwest’s commitment to ensuring a safe and welcoming environment at all times for each of our customers and employees. Southwest’s intention is to remind our customers that flight attendants are a friendly, professional resource for reporting any unwelcome behaviors or conduct during a flight. Safety is always our uncompromising priority, and this new pre-flight reminder is one more way that we can support customers with our Southwest hospitality.”

According to protocol, Southwest Flight Attendants have several options for dealing with these sorts of situations, Travel Pulse reports. These responses include re-seating a passenger away from where the unwelcome behavior took place, requesting that the offending passenger stop the behavior, notifying the captain and even seeking law enforcement assistance upon landing in certain circumstances.

Southwest’s flight attendants are known for more than just stopping bad behavior.

The company recently made headlines after they helped a young boy who had lost his stuffed animal on their flight.

Grayson Mulligan, from Texas, was on a trip to New Orleans with his father over the Thanksgiving holiday when he lost his “very special teddy bear” on the plane,” his mom Chrissy explained on Facebook. After contacting the airline through their Facebook page, Chrissy says that they contacted the flight attendants from the flight, one of whom remembered turning the bear in to a staffer at New Orleans airport.

Unfortunately, the bear apparently didn’t make it to lost and found, so the airline sent the young boy a new bear, complete with a backstory explaining how he went from working at an airfield before making his way to Grayson’s house.

Sprint stock up more than 60% after report that U.S. District judge is set to rule in favor of its deal with T-Mobile

Sprint stock was up more than 60% in extended hours trading Monday after a report in the Wall Street Journal said that a U.S. District judge is expected to rule in favor of its ruling with T-Mobile. T-Mobile stock rose over 8% in extended trading.

CNBC ’s Andrew Ross Sorkin also confirmed the news in a New York Times article.

The decision is expected to be made public Tuesday, the reports said.

The third-largest U.S. wireless carrier by subscribers has been awaiting a decision from a federal judge on whether it can move forward with its $26.5 billion merger with Sprint.

However, a deal can’t close until the California Public Utilities Commission approves the transaction, which still hasn’t occurred nearly two years after its announcement. T-Mobile, Sprint and Dish Network, which is awaiting approval to start a new national wireless network, all haven’t seen the judge’s ruling, according to people familiar with the matter. The details and potential conditions of the transaction are essential to ensuring the deal still makes sense to all parties, the people said.

The merger was seen by many as a bellwether for the future of the U.S. wireless industry.

The carriers argued that the merger between the No. 3 and No. 4 wireless providers in the country would accelerate the timeline for 5G technology. The carriers also argued that there was sufficient competition in the wireless market, pointing to Dish, Comcast, and other satellite and cable companies that offer or plan to offer their own wireless subscription plans.

The merged company would compete with AT&T and Verizon in the U.S. wireless industry.

Previously, the DOJ and FCC had approved the merger after reaching a side deal with Dish Network, the satellite TV provider that wanted to develop its own wireless platform.

Multiple states had sued to block the deal, arguing it is anticompetitive and will raise prices for customers.

British Airways breaks the New York to London subsonic flight record

British Airways just set a new record for subsonic flight — with some help from nature. The airline has confirmed Flightradar24 data showing that one of its Boeing 747s completed a New York to London flight in just 4 hours and 56 minutes, handily beating the previous best of 5 hours and 13 minutes set by Norwegian in 2018. A typical version of this flight takes 6 hours and 13 minutes, Flightradar24 said. The aircraft was helped by a stronger-than-usual (200MPH-plus) jet stream that took the 747 up to 825MPH — technically faster than the speed of sound, but not supersonic as the winds would have prevented the aircraft from breaking the sound barrier.

This wasn’t even the only potential record-setter. Virgin Atlantic had two flights that came close, one arriving just a minute later while another was three minutes behind. The airline even took potshots at British Airways on Twitter, claiming that it came close with half as many engines (on an Airbus A350-1000) and half the fuel.

This won’t come close to beating the absolute speed record. That honor still goes to a British Airways Concorde that completed the flight to London in just under 2 hours and 53 minutes, reaching speeds as high as 1,350MPH on its 1996 journey. The 747’s trip is still an achievement, though, and this might be one of the quickest passenger flights you see until (and unless) supersonic airliners return to the skies.

Why the stock market’s January slump matters to your 2020 return

Maybe there is something special about January after all. For years I have been searching for a plausible theory for why the January Barometer should work — for why the stock market’s direction in the first month of the year should foretell its direction from February through December. On numerous occasions I have argued that, even if the January Barometer’s track record met traditional standards of statistical significance, we still shouldn’t follow it unless such a theory existed.

My wait may finally be over, courtesy of a study that appeared in October 2017 in the International Review of Financial Analysis. Entitled “The January Sentiment Effect in the U.S. Stock Market,” the study was conducted by two finance professors: Zhongdong Chen of the University of Northern Iowa and Phillip R. Daves of the University of Tennessee.

The professors’ theory is that many investors make 401(k) asset allocation decisions in January for the entire year, so what they decide in January affects how much of each of their subsequent 11 monthly 401(k) contributions goes into the stock market. They found support for this theory by focusing on the University of Michigan Index of Consumer Sentiment (ICS): When that index rises in January, the stock market produces above-average performance from February through December.

They found further support for their theory when measuring the impact of a sentiment increase in each of the other 11 months. They found no impact similar to what they found for January.

The professors add that the January Sentiment Effect (JSE) is more statistically powerful than the January Barometer. In fact, after controlling for the JSE, they found that the January Barometer disappears — but not vice versa. That is welcome news this year, since the January Barometer is forecasting a decline through the end of the year and the JSE is slightly positive.

This research into the JSE contains both good and bad news for 2020 in particular. The good news is that the ICS end-of-January reading was higher than the end-of-December reading, which suggests the stock market should have an upward bias for the rest of 2020.

The bad news is that the January ICS increase was quite modest — to 99.8 from 99.3, an rise of just one-half of one percent. Per the econometric model the professors constructed from the historical data, this translates to only a modest boost in expected stock-market return: Just 10 basis points per month above normal for the rest of 2020, equal to only a bit more than 1% for the full February-to-December. That may not be enough to even pay for transaction costs.

In any case, a big qualification is in order: The surveys on which each month’s ICS reading is based are not exclusively conducted in that month. The data cutoff for the Jan. 31 release was the 27th of the month, for example, and for December’s reading it was before Christmas. So the increase from 99.3 to 99.8, modest as it was, is not a pure reflection of how investors’ moods changed in January. Some of the January increase might actually have happened in late December; by the same token, sentiment shifts in the last four days of January won’t show up until the February reading.

Furthermore, Daves said in an interview, in some of the early years of the ICS the interviews were typically done in the first half of the month. For that reason, he and his colleague conducted their study on the assumption that they needed to wait until the end-of-February reading before estimating whether consumer sentiment had increased or decreased in January. Further research is needed to know with confidence that the relevant variable today is the difference between the end-of-January and end-of-December readings.

Daves added, however, that he will worry if the ICS experiences a big drop in February. In the meantime, you may not want to use the ICS increase in January as the occasion to throw caution to the wind. Still, given that the January Barometer is negative, there is some solace in knowing that another January-based seasonal pattern finds at least bit of a reason to be optimistic.

Northrop Grumman aborts Cygnus cargo launch to space station

Northrop Grumman aborted the launch of a commercial Cygnus cargo ship to the International Space Station Sunday (Feb. 9) due to a sensor issue at the mission’s Virginia launchpad.

The Cygnus spacecraft, filled with NASA supplies, was set to launch atop an Antares rocket — also built by Northrop Grumman — at 5:44 p.m. EST (2244 GMT) from Pad-0A of the Mid-Atlantic Regional Spaceport here at NASA’s Wallops Flight Facility. But minutes before that liftoff, Northrop Grumman called of the launch try due to “off-nominal readings from a ground support sensor,” the company said in a statement.

NASA and Northrop Grumman are now targeting the launch for no earlier than Thursday, Feb. 13, at 4:05 p.m. EST (2105 GMT), weather permitting. There were launch opportunities on Monday, Tuesday and Wednesday, but Northrop Grumman opted to skip them “due to an unfavorable weather forecast over the next two days, and time required to address the ground support issue,” the company said.

The Cygnus spacecraft is packed with 7,600 lbs. (3,400 kilograms) of supplies for the three-person Expedition 62 crew living and working on the space station. The launch had a five-minute window and was aborted more than two minutes into that allotment. Northrop Grumman is still evaluating when to try again.

During the lead-up to launch, flight controllers paused the countdown at the T-5 minute mark for reasons that were not announced. The Northrop Grumman team then resumed the countdown, then pushed launch from an initial 5:39 p.m. EST target to its final 5:44 p.m. EST time — the end of the window — before scrubbing the launch try altogether. During live audio launch commentary, a mission team member referred to a regulator while discussing the abort, but more details were not yet available.

The technical glitch marred an otherwise flawless countdown for Northrop Grumman’s Antares and Cygnus vehicles. The launch had a 95% chance of good weather and that forecast appeared to be spot on.

Aside from a light breeze, the sky was a dusky blue, with wisps of clouds and flocks of geese decorating the sky from time to time.

NASA flight controllers at the agency’s Mission Control Center have alerted the station’s current Expedition 62 crew, which includes American astronauts Jessica Meir, Andrew Morgan and Russian cosmonaut Oleg Scripochka.

As Northrop Grumman reviews Sunday’s Antares launch glitch, NASA and the European Space Agency are counting down to a different launch from Cape Canaveral Air Force Station in Florida.

A United Launch Alliance Atlas V rocket is set to launch the joint ESA-NASA Solar Orbiter mission from Cape Canaveral at 11:03 p.m. EST (0403 GMT Feb. 10) to begin an ambitious mission to the sun. The powerful Solar Orbiter is designed to study the sun’s polar regions from orbit to better understand the origins of solar weather and the sun’s magnetic field.

You can watch the Solar Orbiter launch live on Space.com, courtesy of NASA TV, beginning at 10:30 p.m. EST (0330 GMT Feb. 10).

Editor’s note: Space.com senior writer Meghan Bartels contributed to this report from New York City. Editor-in-chief Tariq Malik contributed to this report from NASA’s Wallops Flight Facility on Wallops Island, Virginia. This story was updated to include a new launch date for the Cygnus NG-13 mission.

Check out Bill Barr’s wild plan to freeze out Huawei from global 5G networks

The United States really has it in for Huawei. Branded a threat to national security, banned from its U.S. supply chain, unable to sell its advanced networking equipment to rural U.S. carriers via the Universal Service Fund (USF), and blocked from selling its phones through U.S. carriers, it would seem that the Trump administration would be happy if Huawei just closed up shop altogether and went out of business.

Fearful that Huawei’s products contain a backdoor that will send private information to Beijing, the U.S. has tried to get allies not to use the company’s networking equipment for their 5G networks. Australia, France, and Japan heeded the warnings, Germany and Britain did not. That’s because Huawei’s networking equipment is considered at least a year ahead of the gear offered by rivals like Nokia and Ericsson. And because of its ties to China’s state-run bank, Huawei can offer generous financing terms.

Attorney General Barr says that the U.S. should buy Nokia and Ericsson

With cutting-edge technology and the best financing terms, Huawei is the largest supplier of networking equipment in the world. But recently, White House economic adviser Lawrence Kudlow revealed that the U.S. is looking to replace some of Huawei’s hardware with software that can run over hardware made by any manufacturer. Kudlow said that U.S. firms involved in this plan include Microsoft Corp., Dell Inc., and AT&T Inc. Kudlow added that “The big-picture concept is to have all of the U.S. 5G architecture and infrastructure done by American firms, principally. That also could include Nokia and Ericsson because they have big U.S. presences.” He also mentioned that the goal is to use the cloud to replace some of the equipment used on 5G networks. “Dell and Microsoft are now moving very rapidly to develop software and cloud capabilities that will, in fact, replace a lot of the equipment.” An economist by trade, Kudlow said, “To quote Michael Dell, ‘Software is eating the hardware in 5G.’”

Reuters reports that on Thursday, Attorney General William Barr floated a plan that would have the U.S. take control of Nokia and Ericsson. The pair are headquartered in Finland and Sweden respectively. The Attorney General added that this would be done “by the United States aligning itself with Nokia and/or Ericsson,” and “through American ownership of a controlling stake, either directly or through a consortium of private American and allied companies. Putting our large market and financial muscle behind one or both of these firms would make it a far more formidable competitor and eliminate concerns over its staying power, or their staying power. We and our closest allies certainly need to be actively considering this approach.” But Kudlow quickly shot down that plan and said that the “U.S. government is not in the business of buying companies, whether they’re domestic or foreign.” He did note that “there’s nothing to prohibit American tech companies from acquiring (the companies).”

Vice President Mike Pence responded to Barr’s plan by saying, “Great respect to Attorney General Barr, but we believe the best way forward is what (FCC Chairman) Ajit Pai announced just over the last several days. That’s the plan the president has endorsed and will be carrying forward. Pence said that the U.S. can build out the 5G networks it needs “by using the power of the free market and American companies.” The VP is referring to plans that the FCC has to auction off much-needed mid-band spectrum in the C-band (3.7GHz to 4.2GHz range). While this additional spectrum will broaden the ability of 5G signals to cover all of the country, it isn’t clear how it will help carriers avoid Huawei’s networking gear.

It would cost the U.S. government more than $53 billion to purchase Nokia and Ericsson at their current valuations, and stockholders would require a premium to give them an incentive to sell their shares to the U.S. government. Barr’s plan didn’t make it clear where the money would come from to buy the companies. And as T-Mobile and Sprint know, getting a large deal through regulators (in this case both domestic and foreign) would be like threading the eye of a needle.

The ‘aha’ moment that changed Jeff Bezos’ life

With a $126 billion fortune, Amazon CEO Jeff Bezos is certainly the richest person in the world, but he may not be the smartest. At least that’s what Bezos thought as a college student.

Before Bezos ever sold a single book online, he was a physics major at Princeton University in the 1980s. And despite being one of the top 25 students in his honors program, Bezos believed he wasn’t smart enough to compete.

So he changed his major to electrical engineering and computer science, according to Wired, and it changed the course of his life.

“I looked around the room and it was clear to me that there were three people in the class who were much, much better at [physics] than I was, and it was much, much easier for them,” Bezos told Wired in 1999.

“It was really sort of a startling insight, that there were these people whose brains were wired differently,” he said.

Bezos had this epiphany after unsuccessfully struggling to solve a math problem for hours.

“I can’t solve this partial differential equation,” he told the Economic Club of Washington in September 2018. “It’s really really hard. I’m studying with my roommate, Joe, who is also really good at math. The two of us worked on this one homework problem for three hours and got nowhere.”

He and his roommate finally asked a friend, Yasantha Rajakarunanayake, for help.

“We show him this problem, and he looks at it, stares at it for a while, and says ‘Cosine, that’s the answer.’ And i’m like ‘That’s the answer?’ And he’s like ‘Yes, let me show you,’” Bezos said.

“He brings us into his room, he sits us down, he writes out three pages of detailed algebra, everything crosses out, and the answer is cosine. I said, ‘Did you just do that in your head?’ And he said, ‘No, that would be impossible. Three years ago, I solved a very similar problem. I was able to map this problem onto that problem, and then it was immediately obvious that the answer was cosine.’”

According to Bezos, that was the moment he realized he should pursue a different career.

“That was an important moment for me, because that was the very moment when I realized I was never going to be a great theoretical physicist,” he said at the Economic Club. “I started doing some soul searching. In most occupations, if you’re in the 90th percentile, you’re going to contribute. In theoretical physics, you gotta be one of the top 50 people in the world, or you’re really not helping out much.”

Bezos changed his major and “committed to starting and running his own business,” according to Wired.

Bezos graduated from Princeton in 1986 with a degree in electrical engineering and computer science.

In 1994 while working at a hedge fund, Bezos found a staggering statistic the web was growing at 2,300% per year, which inspired him to launch Amazon as an online bookseller in 1995. Today the so-called “everything store,” has a market capitalization of over $1 trillion.

“I saw the writing on the wall, and I changed my major very quickly to electrical engineering and computer science,” Bezos said at the Economic Club.

California’s new privacy law is off to a rocky start

California’s new privacy law was years in the making.

The law, California’s Consumer Privacy Act — or CCPA — became law on January 1, allowing state residents to reclaim their right to access and control their personal data. Inspired by Europe’s GDPR, the CCPA is the largest statewide privacy law change in a generation. The new law lets users request a copy of the data that tech companies have on them, delete the data when they no longer want a company to have it, and demand that their data isn’t sold to third parties. All of this is much to the chagrin of the tech giants, some of which had spent millions to comply with the law and have many more millions set aside to deal with the anticipated influx of consumer data access requests.

But to say things are going well is a stretch.

Many of the tech giants that kicked and screamed in resistance to the new law have acquiesced and accepted their fate — at least until something different comes along. The California tech scene had more than a year to prepare, but some have made it downright difficult and — ironically — more invasive in some cases for users to exercise their rights, largely because every company has a different interpretation of what compliance should look like.

Alex Davis is just one California resident who tried to use his new rights under the law to make a request to delete his data. He vented his annoyance on Twitter, saying companies have responded to CCPA by making requests “as confusing and difficult as possible in new and worse ways.”

“I’ve never seen such deliberate attempts to confuse with design,” he told TechCrunch. He referred to what he described as “dark patterns,” a type of user interface design that tries to trick users into making certain choices, often against their best interests.

“I tried to make a deletion request but it bogged me down with menus that kept redirecting… things to be turned on and off,” he said.

Despite his frustration, Davis got further than others. Just as some companies have made it easy for users to opt-out of having their data sold by adding the legally required “Do not sell my info” links on their websites, many have not. Some have made it near-impossible to find these “data portals,” which companies set up so users can request a copy of their data or delete it altogether. For now, California companies are still in a grace period — but have until July when the CCPA’s enforcement provisions kick in. Until then, users are finding ways around it — by collating and sharing links to data portals to help others access their data.

“We really see a mixed story on the level of CCPA response right now,” said Jay Cline, who heads up consulting giant PwC’s data privacy practice, describing it as a patchwork of compliance.

PwC’s own data found that only 40% of the largest 600 U.S. companies had a data portal. Only a fraction, Cline said, extended their portals to users outside of California, even though other states are gearing up to push similar laws to the CCPA.

But not all data portals are created equally. Given how much data companies store on us — personal or otherwise — the risks of getting things wrong are greater than ever. Tech companies are still struggling to figure out the best way to verify each data request to access or delete a user’s data without inadvertently giving it away to the wrong person.

Last year, security researcher James Pavur impersonated his fiancee and tricked tech companies into turning over vast amounts of data about her, including credit card information, account logins and passwords and, in one case, a criminal background check. Only a few of the companies asked for verification. Two years ago, Akita founder Jean Yang described someone hacking into her Spotify account and requesting her account data as an “unfortunate consequence” of GDPR, which mandated companies operating on the continent allow users access to their data.

The CCPA says companies should verify a person’s identity to a “reasonable degree of certainty.” For some that’s just an email address to send the data.

Others require sending in even more sensitive information just to prove it’s them.

Indeed, i360, a little-known advertising and data company, until recently asked California residents for a person’s full Social Security number. This recently changed to just the last four-digits. Verizon (which owns TechCrunch) wants its customers and users to upload their driver’s license or state ID to verify their identity. Comcast asks for the same, but goes the extra step by asking for a selfie before it will turn over any of a customer’s data.

Comcast asks for the same amount of information to verify a data request as the controversial facial recognition startup, Clearview AI, which recently made headlines for creating a surveillance system made up of billions of images scraped from Facebook, Twitter and YouTube to help law enforcement trace a person’s movements.

As much as CCPA has caused difficulties, it has helped forge an entirely new class of compliance startups ready to help large and small companies alike handle the regulatory burdens to which they are subject. Several startups in the space are taking advantage of the $55 billion expected to be spent on CCPA compliance in the next year — like Segment, which gives customers a consolidated view of the data they store; Osano which helps companies comply with CCPA; and Securiti, which just raised $50 million to help expand its CCPA offering. With CCPA and GDPR under their belts, their services are designed to scale to accommodate new state or federal laws as they come in.

Another startup, Mine, which lets users “take ownership” of their data by acting as a broker to allow users to easily make requests under CCPA and GDPR, had a somewhat bumpy debut.

The service asks users to grant them access to a user’s inbox, scanning for email subject lines that contain company names and using that data to determine which companies a user can request their data from or have their data deleted. (The service requests access to a user’s Gmail but the company claims it will “never read” users’ emails.) Last month during a publicity push, Mine inadvertently copied a couple of emailed data requests to TechCrunch, allowing us to see the names and email addresses of two requesters who wanted Crunch, a popular gym chain with a similar name, to delete their data.

TechCrunch alerted Mine — and the two requesters — to the security lapse.

“This was a mix-up on our part where the engine that finds companies’ data protection offices’ addresses identified the wrong email address,” said Gal Ringel, co-founder and chief executive at Mine. “This issue was not reported during our testing phase and we’ve immediately fixed it.”

For now, many startups have caught a break.

The smaller, early-stage startups that don’t yet make $25 million in annual revenue or store the personal data on more than 50,000 users or devices will largely escape having to immediately comply with CCPA. But it doesn’t mean startups can be complacent. As early-stage companies grow, so will their legal responsibilities.

“For those who did launch these portals and offer rights to all Americans, they are in the best position to be ready for these additional states,” said Cline. “Smaller companies in some ways have an advantage for compliance if their products or services are commodities, because they can build in these controls right from the beginning,” he said.

CCPA may have gotten off to a bumpy start, but time will tell if things get easier. Just this week, California’s attorney general Xavier Becerra released newly updated guidance aimed at trying to “fine tune” the rules, per his spokesperson. It goes to show that even California’s lawmakers are still trying to get the balance right.

But with the looming threat of hefty fines just months away, time is running out for the non-compliant.

Trump will propose big boost for NASA to return astronauts to the moon

President Trump is seeking billions of dollars in new funding for NASA aimed at returning astronauts to the moon within four years, according to administration officials.

Trump will propose a 12 percent budget increase for the National Aeronautics and Space Administration when he releases his spending plan next week. The boost includes funding to develop human landers, Fox News has confirmed.

No one has been to the moon since 1972 under NASA’s now-shuttered Apollo program. But since taking office, Trump has made space exploration a top priority, and his administration has set a target of 2024 for the next lunar landing.

NASA’s new space program named Artemis, for the Greek goddess of the moon and sister to Apollo, aims to put the first woman on the moon. Long-term, NASA wants to establish a sustainable human presence on the moon with the goal of sending humans to Mars in the 2030s.

Trump’s budget will increase NASA spending from about $22.6 billion to $25.2 billion in fiscal 2021, one of the biggest spending increases requested since the 1990s. The NASA budget proposal was first reported by The Wall Street Journal.

The big lunar budget request is in addition to Trump’s other astronomical project: Space Force. Trump signed an Oval Office directive last February to make the Space Force the sixth branch of the military, with a mission to patrol the orbit and protect the U.S. from attacks.

Trump’s budget would have to get approval from the Republican-controlled Senate and Democrat-majority House, led by Speaker Nancy Pelosi. Trump previewed the proposal in Tuesday’s State of the Union address.

“We must embrace the next frontier, America’s manifest destiny in the stars,” said Trump, who invited a young aspiring astronaut to the Capitol as one of his guests.

“I am asking the Congress to fully fund the Artemis program to ensure that the next man and the first woman on the moon will be American astronauts — using this as a launching pad to ensure that America is the first nation to plant its flag on Mars.”

The White House also wants to double funding for artificial intelligence research and quantum information sciences to nearly $3 billion by 2022.

The investment in quantum computing to develop technology millions of times faster than today’s supercomputers was first reported by Reuters.

Meanwhile, Trump aims to cut down on government waste by ending the federal government’s use-it-or-lose-it spending sprees. Agencies have splurged on alcohol, lobster tail, crab and workout equipment at the end of the year to show Congress there’s no money left over for lawmakers to cut.

Trump also wants to crack down on improper payments, such as paying nearly $1 billion to dead people since 2004 in benefits payments.

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