On October 21, 2016, Airbnb launched a legal battle in the Southern District of New York against the Mayor of New York City, the City of New York, and the state attorney general after Governor Andrew Cuomo signed a bill into law that possesses the potential to significantly impact the company. Airbnb provides an online platform for residential hosts to directly advertise rental listings for their properties and for guests to make reservations for these properties. Airbnb gains revenue by charging service fees on hosts and guests for the booking process. Airbnb asserts that it helps the middle class by providing a supplemental source of income that can be gained from renting out properties via this online platform.
Judge Rules in Favor of Fannie and Freddie Investors in Government Battle
On October 3, 2016, Fannie Mae and Freddie Mac investors received good news in their suit against the United States over its seizing of company profits. After reviewing 56 documents that had been deemed privileged by the government, Federal Claims Court Judge Margaret M. Sweeney ruled that the government had improperly withheld 52 of the documents and ordered their release. This is a breakthrough for plaintiffs in what has been an unusually secretive case, shrouded by sealed depositions and claims of presidential privilege.
Congress Urges Stricter Scrutiny of Chinese Capital in Hollywood
Lawmakers are urging a tougher stance on Chinese acquisitions in certain industries involving national security, but with a twist: now, Hollywood is in focus.
Tech Giants Invest in Local Cloud Infrastructure to Build Credibility in Europe
Silicon Valley’s tech giants, including Apple, Facebook, Microsoft, Amazon, and Google, have recently invested billions of dollars into Europe’s cloud market. Amazon, already running data centers in Germany, is planning on opening additional centers in France and Great Britain. Google is also opening a new data center in the Netherlands, adding to its already existing centers in Finland and Belgium. Apple, Facebook, and Microsoft are also working on similar projects. In doing so, these tech giants foster benefits for both themselves, their European customers, and the economies of European nations.
Snapchat Poised for IPO in 2017
Everyone’s favorite message disappearing app is reportedly preparing the paperwork to file an IPO as early as next March. Snap Inc., parent company of Snapchat, received a valuation of $17.8 billion in May, but a public offering next year could potentially price the company at $25 billion or more.
Recap: “Venture Capital Speaker Series—The Tech Counsel”
On October 12, 2016, the Berkeley Center for Law, Business and the Economy (BCLBE) welcomed Dave Kling (’97), Vice President, Deputy Counsel, and Corporate Secretary of Facebook for a Q&A discussion about his career, his role at Facebook, and the variety of legal challenges Facebook faces as a company.
Federal Government May Have Spied on Your Yahoo Account
On Tuesday, October 4, 2016, Reuters revealed that Yahoo secretly scanned user emails for the federal government in 2015. Anonymous former Yahoo employees alleged that members of either the National Security Agency or Federal Bureau of Investigation issued a warrant under Section 702 of the Foreign Intelligent Surveillance Act (FISA), asking Yahoo to create software to search key words and/or phrases of user emails as part of an ongoing government investigation. Shortly after, Yahoo created a syphoning system by which the government could tap into user emails in real time and search for specific character strings that they believed were connected to national security threats. Yahoo has not denied these allegations.
Recap: Venture Capital Speaker Series – Kevin Kennedy, Simpson Thacher
On October 10, 2016, the Berkeley Center for Law, Business and the Economy (BCLBE) hosted Kevin Kennedy, partner in Simpson Thacher’s corporate department and co-chair of the firm’s pro bono committee, for a discussion on navigating capital markets. Mr. Kennedy is also a member of the Boalt Hall Alumni Association.
Judge and Airbnb at Odds over San Francisco Rental Ordinance
The enduring conflict between San Francisco leaders and Airbnb, chiefly over the city’s housing crisis, was reignited on Thursday, October 6, 2016 in federal district court. U.S. District Judge James Donato expressed concern over a bid by Airbnb to stop a San Francisco law which imposes fines on the rental company, and other similar tech sites like HomeAway, for allowing bookings by hosts who have not registered with the city. He did not immediately issue a ruling.
Controversial EB-5 Investment Program Extended until December
After almost expiring last month, Congress renewed the EB-5 Immigrant Investment Program – which provides U.S. visas in exchange for large investments in U.S. businesses – until December 9. Although touted to create jobs where they are needed the most, allegations of fraud have marred the program’s effectiveness and caused some to question whether it should exist at all.