#Competition and Industrial Policy

[reportwire]

France pushes protectionism in Ukraine defense plan

As Russia’s war in Ukraine puts a heavy strain on EU arms, there’s infighting in Brussels over how best to reload. The latest skirmish is focused around a procurement fund intended to ramp up production of arms in Europe. POLITICO has learned that key committees in the European Parliament — namely, the committees for industry, the internal market, and the subcommittee on security and defense —…

[shinobicyrus]

Hey, yanno how Climate Change is a real thing that is tangibly, at this moment, affecting our world?

Well it turns out, the wealthy and their investment firms have been seeing the mounting evidence that oil companies have had for decades and are slowly starting to think more long-term about their portfolios in the face of rising sea levels, more extreme weather, and the myriad of ways climate crises are affecting...well. Everything. Maybe this means they invest more into sustainability, green energy, building more resilient infrastructure, or carbon offsets. Some of it, of course, is simple corporate greenwashing, but there are those that are taking this trend and packaging it into something called ESG (Environmental, Social, and corporate Governance).

Now some people would say this is predictable, even sensible. Just the good ol’ Free Market(tm) rationally responding to market forces and a changing world.

But those people would be fools! Insidious fools! For conservative sorcerers have come out with a new cursed phrase to explain this new market trend: Woke Investing.

What makes this investing “woke?” Well, much like how conservatives normally flounder when trying to define a word they stole from black people, “Woke Investing” essentially just means any kind of capital investment that they, the fossil fuel billionaire class and their sycophants, don’t personally profit from.

One of these aforementioned sycophants is Andy Puzder, conservative commentator, fellow at The Heritage Foundation, and former fast-food CEO. He calls this kind of so-called woke investing “socialism in sheep’s clothing,” further explaining in leaked audio of a closed-door meeting:

“My father's generation's challenge was the Nazis, who, by the way, were, of course, very proud socialists[citation fucking needed]. The challenge of my generation was the communists, who were, of course, very committed socialists. The challenge of your generation is ESG investing, and it's more insidious than communism or the Nazis.”(source)

You heard it here first, folks. Not investing as much in fossil fuels is more insidious than the Third Fucking Reich.

As usual, the Heritage Foundation is putting their petro-chemical donor’s money where their mouth is. Bills are being proposed to blacklist banks that don’t invest in key state industries, such as West Virginia coal or Texas oil. Fourteen states have already passed bills to restrict ESG-type investing, with Florida Governor Ron “Bullies Kids for Wearing Masks” Desantis leading the charge.

In other words, Climate Denial has reached such a point that so-called Free Market Conservatives who claim to hate big government are trying to make it illegal for banks, investment firms, and financial institutions to make any financial decisions that acknowledges Climate Change is real.

[farmerstrend]

Boosting Potato Productivity in Kenya: AGRA Unveils Initiative to Support Potato Value Chain in Kenya

In a move to increase potato productivity in Kenya, AGRA in collaboration with the National Potato Council of Kenya (NPCK), Egerton University, Kenya Agricultural and Livestock Research Organization (KALRO) and County Governments have unveiled a programme dubbed the Kenya Sustainable Potato Initiative (KSPI). L-R, Dr. Moses Nyongesa, Centre Director KALRO Tigoni, John Macharia, Country Director…

[medicaldevicesindustrynews]

MEA Chiller Market was Led by the Commercial Category

The MEA chiller marketis around USD 1,227.6 million in 2023, and it will grow at a rate of 6.5% in the years to come, to touch USD 1,872.5 million by 2030. On the basis of type segment, the screw category dominated the industry. This is as a result of the growing acceptance of screw chillers by industrial and commercial sectors. This is further divided into two parts, air-cooled and…

[hislop3]

Unveiling the Allegations: Lawsuit Claims Advocate Aurora Health's Monopoly on Health System is Hiking Prices in Wisconsin

Late last week, I ran across a number of news posts regarding a proposed class action lawsuit against the hospital/health system giant Advocate Aurora, alleging that the organization used its market mass to limit competition and in return, impose excessively high prices on commercial health plans and their insureds. The suit was filed in Wisconsin (where the allegations center), the U.S. District…

[bharatbriefs]

Big Tech Braces for Wave of Antitrust Rulings in 2024 

U.S. antitrust cases against tech giants Google and Meta Platforms are expected to come to a head in 2024, likely producing long-awaited rulings that could shape the legacies of top Biden administration regulators. Silicon Valley and its critics have seen their patience tested on some of these cases. A U.S. antitrust case brought against Alphabet’s Google unit in 2020 went to trial in 2023 and…

[reasonsforhope]

Sorry I'm kind of dissociated and my vocab crashes during that can you explain the Biden drug thing in just. Shorter simple sentences.

Sure! You're not the only one who's mentioned being unclear on what it means either, and I'm happy to help

(Context for anyone else: US Sets Policy to Seize Patents of Government-Funded Drugs if Price Deemed Too High, via Good News Network, December 11, 2023)

From the very basics:

When drug companies create new drugs, they get a legal protection called a "patent." The patent means no one else can make or sell the same drug for whatever number of years.

Usually, this is about 10 years after the drug starts being sold to the public.

So, for those years, that one drug company is the only source of whatever medication. And since people need their medication, drug companies can charge however much money they want.

Meaning a lot of drugs that people need to live cost way too much money to buy.

So, with this, Biden told drug companies "Fuck you, if you keep making medicine too $$$ for people to afford, I'm giving your competition the right to make and sell those drugs too."

The US has never done anything like this before.

This is a huge threat to the whole (awful) drug industry in the US. It will save people thousands of dollars. If he does this, it will save lives.

--

Edit 12/17/23: Quick note, as people have said in the notes, this only applies to drugs made in part using taxpayer money. Which is! Literally all of them!

[fans4wga]

CALL TO ACTION to support WGA/SAG-AFTRA: Submit a comment about the corporate monopoly crisis.

August 18, 2023: You can personalize the template message included in the above link, or simply just add your name & email. Seems like it's US only; please boost if you can't sign yourself.

From the WGA:

"More than 100 days into our strike, as we continue to fight for the sustainability of our profession, events in Washington, D.C. provide an opportunity for writers to shine a light on one of the root causes of the strike: media consolidation. For decades, the WGA has advocated for stronger antitrust oversight, bringing attention to the ways that mergers and vertical integration in our industry – from AT&T-Time Warner to Warner Bros.-Discovery to Amazon-MGM to Disney-Fox – have consolidated the power of our employers and harmed writers as well as the diversity of content. In numerous reports and policy filings – including a new report called The New Gatekeepers: How Disney, Amazon and Netflix Will Take Over Media, released yesterday – the WGA has documented the threat to our industry from past and future consolidation and called for more aggressive antitrust enforcement. Our current strike highlights the urgency of the issue; studios gained power through anti-competitive consolidation and vertical integration and then used that power to push down wages and impose more precarious working conditions for writers while profiting off of their work, and currently – together – refuse to bargain a fair contract for writers to mitigate those harms. Last month, the FTC and DOJ jointly released proposed revisions to their Merger Guidelines, a policy document designed to guide law enforcement around consolidation. These new Draft Guidelines are part of an effort by these agencies to reinvigorate antitrust enforcement. Compared with prior versions of Merger Guidelines, they give significantly more weight to the ways that mergers can be harmful and, for the first time, explicitly direct agencies and courts to consider how mergers can hurt workers. The Draft Guidelines have been released for public comment, and the FTC and DOJ want to hear from people who have been affected by consolidation – people like you.”

The FTC and DOJ are accepting comments on their revisions of the Merger Guidelines until September 18.

[robertreich]

Should Billionaires Exist? 

Do billionaires have a right to exist?

America has driven more than 650 species to extinction. And it should do the same to billionaires.

Why? Because there are only five ways to become one, and they’re all bad for free-market capitalism:

1. Exploit a Monopoly.

Jamie Dimon is worth $2 billion today… but not because he succeeded in the “free market.” In 2008, the government bailed out his bank JPMorgan and other giant Wall Street banks, keeping them off the endangered species list.

This government “insurance policy” scored these struggling Mom-and-Pop megabanks an estimated $34 billion a year.

But doesn’t entrepreneur Jeff Bezos deserve his billions for building Amazon?

No, because he also built a monopoly that’s been charged by the federal government and 17 states for inflating prices, overcharging sellers, and stifling competition like a predator in the wild.

With better anti-monopoly enforcement, Bezos would be worth closer to his fair-market value.

2. Exploit Inside Information

Steven A. Cohen, worth roughly $20 billion headed a hedge fund charged by the Justice Department with insider trading “on a scale without known precedent.” Another innovator!

Taming insider trading would level the investing field between the C Suite and Main Street.

3.  Buy Off Politicians

That’s a great way to become a billionaire! The Koch family and Koch Industries saved roughly $1 billion a year from the Trump tax cut they and allies spent $20 million lobbying for. What a return on investment!

If we had tougher lobbying laws, political corruption would go extinct.

4. Defraud Investors

Adam Neumann conned investors out of hundreds of millions for WeWork, an office-sharing startup. WeWork didn’t make a nickel of profit, but Neumann still funded his extravagant lifestyle, including a $60 million private jet. Not exactly “sharing.”

Elizabeth Holmes was convicted of fraud for her blood-testing company, Theranos. So was Sam Bankman-Fried of crypto-exchange FTX. Remember a supposed billionaire named Donald Trump? He was also found to have committed fraud.

Presumably, if we had tougher anti-fraud laws, more would be caught and there’d be fewer billionaires to preserve.

5. Get Money From Rich Relatives

About 60 percent of all wealth in America today is inherited.

That’s because loopholes in U.S. tax law —lobbied for by the wealthy — allow rich families to avoid taxes on assets they inherit. And the estate tax has been so defanged that fewer than 0.2 percent of estates have paid it in recent years.

Tax reform would disrupt the circle of life for the rich, stopping them from automatically becoming billionaires at their birth, or someone else’s death.

Now, don’t get me wrong. I’m not arguing against big rewards for entrepreneurs and inventors. But do today’s entrepreneurs really need billions of dollars? Couldn’t they survive on a measly hundred million?

Because they’re now using those billions to erode American institutions. They spent fortunes bringing Supreme Court justices with them into the wild.They treated news organizations and social media platforms like prey, and they turned their relationships with politicians into patronage troughs.

This has created an America where fewer than ever can become millionaires (or even thousandaires) through hard work and actual innovation.

If capitalism were working properly, billionaires would have gone the way of the dodo.

[collapsedsquid]

I doubt it was predicted or designed, but when the practice emerged of delegating industrial policy to local governments, China invented a structural form of antitrust. The central state declares what industries are to be favored, and then many localities toss contenders into the ring. The unsurprising result is competition. At the national level, with astonishing speed, industries with world-class competences emerge, even when — especially when — no "national champion" comes to dominate. Great industries are what a nation wants, not great firms. Firms are just the players. They perform extraordinary feats, and we cheer them, but they come and go. The industry is the league. It is what endures and delivers decade after decade. A decade ago China did not produce electric vehicles. Now it is the world leader. It is the same story with batteries, solar panels, steel. In the US, we tend to provide government support to established national champions, Boeing perhaps, or Intel. How is that working for us? Large consolidated firms become specialists in exploiting market power and political influence rather than any technical facet of production. What if we financed state governments to field local heroes and compete in the big leagues? It boggles the American imagination to think that medium-sized, US-state-level enterprises could compete in high-tech, capital-intensive industries. But isn't China's experience an existence proof? Shouldn't the share-buyback-heavy, technical-achievement-light experience of firms like Boeing and Intel chasten our conventional wisdom?

Must do socialism so we have intense competition between the Colorado smartphone and the Massachusetts smartphone

[determinate-negation]

“This raises the question: if industrial production is necessary to meet decent-living standards today, then perhaps capitalism—notwithstanding its negative impact on social indicators over the past five hundred years—is necessary to develop the industrial capacity to meet these higher-order goals. This has been the dominant assumption in development economics for the past half century. But it does not withstand empirical scrutiny. For the majority of the world, capitalism has historically constrained, rather than enabled, technological development—and this dynamic remains a major problem today.

It has long been recognized by liberals and Marxists alike that the rise of capitalism in the core economies was associated with rapid industrial expansion, on a scale with no precedent under feudalism or other precapitalist class structures. What is less widely understood is that this very same system produced the opposite effect in the periphery and semi-periphery. Indeed, the forced integration of peripheral regions into the capitalist world-system during the period circa 1492 to 1914 was characterized by widespread deindustrialization and agrarianization, with countries compelled to specialize in agricultural and other primary commodities, often under “pre-modern” and ostensibly “feudal” conditions.

In Eastern Europe, for instance, the number of people living in cities declined by almost one-third during the seventeenth century, as the region became an agrarian serf-economy exporting cheap grain and timber to Western Europe. At the same time, Spanish and Portuguese colonizers were transforming the American continents into suppliers of precious metals and agricultural goods, with urban manufacturing suppressed by the state. When the capitalist world-system expanded into Africa in the eighteenth and nineteenth centuries, imports of British cloth and steel destroyed Indigenous textile production and iron smelting, while Africans were instead made to specialize in palm oil, peanuts, and other cheap cash crops produced with enslaved labor. India—once the great manufacturing hub of the world—suffered a similar fate after colonization by Britain in 1757. By 1840, British colonizers boasted that they had “succeeded in converting India from a manufacturing country into a country exporting raw produce.” Much the same story unfolded in China after it was forced to open its domestic economy to capitalist trade during the British invasion of 1839–42. According to historians, the influx of European textiles, soap, and other manufactured goods “destroyed rural handicraft industries in the villages, causing unemployment and hardship for the Chinese peasantry.”

The great deindustrialization of the periphery was achieved in part through policy interventions by the core states, such as through the imposition of colonial prohibitions on manufacturing and through “unequal treaties,” which were intended to destroy industrial competition from Southern producers, establish captive markets for Western industrial output, and position Southern economies as providers of cheap labor and resources. But these dynamics were also reinforced by structural features of profit-oriented markets. Capitalists only employ new technologies to the extent that it is profitable for them to do so. This can present an obstacle to economic development if there is little demand for domestic industrial production (due to low incomes, foreign competition, etc.), or if the costs of innovation are high.

Capitalists in the Global North overcame these problems because the state intervened extensively in the economy by setting high tariffs, providing public subsidies, assuming the costs of research and development, and ensuring adequate consumer demand through government spending. But in the Global South, where state support for industry was foreclosed by centuries of formal and informal colonialism, it has been more profitable for capitalists to export cheap agricultural goods than to invest in high-technology manufacturing. The profitability of new technologies also depends on the cost of labor. In the North, where wages are comparatively high, capitalists have historically found it profitable to employ labor-saving technologies. But in the peripheral economies, where wages have been heavily compressed, it has often been cheaper to use labor-intensive production techniques than to pay for expensive machinery.

Of course, the global division of labor has changed since the late nineteenth century. Many of the leading industries of that time, including textiles, steel, and assembly line processes, have now been outsourced to low-wage peripheral economies like India and China, while the core states have moved to innovation activities, high-technology aerospace and biotech engineering, information technology, and capital-intensive agriculture. Yet still the basic problem remains. Under neoliberal globalization (structural adjustment programs and WTO rules), governments in the periphery are generally precluded from using tariffs, subsidies, and other forms of industrial policy to achieve meaningful development and economic sovereignty, while labor market deregulation and global labor arbitrage have kept wages extremely low. In this context, the drive to maximize profit leads Southern capitalists and foreign investors to pour resources into relatively low-technology export sectors, at the expense of more modern lines of industry.

Moreover, for those parts of the periphery that occupy the lowest rungs in global commodity chains, production continues to be organized along so-called pre-modern lines, even under the new division of labor. In the Congo, for instance, workers are sent into dangerous mineshafts without any modern safety equipment, tunneling deep into the ground with nothing but shovels, often coerced at gunpoint by U.S.-backed militias, so that Microsoft and Apple can secure cheap coltan for their electronics devices. Pre-modern production processes predicated on the “technology” of labor coercion are also found in the cocoa plantations of Ghana and Côte d’Ivoire, where enslaved children labor in brutal conditions for corporations like Cadbury, or Colombia’s banana export sector, where a hyper-exploited peasantry is kept in line by a regime of rural terror and extrajudicial killings overseen by private death squads.

Uneven global development, including the endurance of ostensibly “feudal” relations of production, is not inevitable. It is an effect of capitalist dynamics. Capitalists in the periphery find it more profitable to employ cheap labor subject to conditions of slavery or other forms of coercion than they do to invest in modern industry.”

Capitalism, Global Poverty, and the Case for Democratic Socialism by Jason Hickle and Dylan Sullivan

[fatehbaz]

Despite its green image, Ireland has surprisingly little forest. [...] [M]ore than 80% of the island of Ireland was [once] covered in trees. [...] [O]f that 11% of the Republic of Ireland that is [now] forested, the vast majority (9% of the country) is planted with [non-native] spruces like the Sitka spruce [in commercial plantations], a fast growing conifer originally from Alaska which can be harvested after just 15 years. Just 2% of Ireland is covered with native broadleaf trees.

Text by: Martha O’Hagan Luff. “Ireland has lost almost all of its native forests - here’s how to bring them back.” The Conversation. 24 February 2023. [Emphasis added.]

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[I]ndustrial [...] oil palm plantations [...] have proliferated in tropical regions in many parts of the world, often built at the expense of mangrove and humid forest lands, with the aim to transform them from 'worthless swamp' to agro-industrial complexes [...]. Another clear case [...] comes from the southernmost area in the Colombian Pacific [...]. Here, since the early 1980s, the forest has been destroyed and communities displaced to give way to oil palm plantations. Inexistent in the 1970s, by the mid-1990s they had expanded to over 30,000 hectares. The monotony of the plantation - row after row of palm as far as you can see, a green desert of sorts - replaced the diverse, heterogenous and entangled world of forest and communities.

Text by: Arturo Escobar. "Thinking-Feeling with the Earth: Territorial Struggles and the Ontological Dimension of the Epistemologies of the South." Revista de Antropologia Iberoamericana Volume 11 Issue 1. 2016. [Emphasis added.]

---

But efforts to increase global tree cover to limit climate change have skewed towards erecting plantations of fast-growing trees [...] [because] planting trees can demonstrate results a lot quicker than natural forest restoration. [...] [But] ill-advised tree planting can unleash invasive species [...]. [In India] [t]o maximize how much timber these forests yielded, British foresters planted pines from Europe and North America in extensive plantations in the Himalayan region [...] and introduced acacia trees from Australia [...]. One of these species, wattle (Acacia mearnsii) [...] was planted in [...] the Western Ghats. This area is what scientists all a biodiversity hotspot – a globally rare ecosystem replete with species. Wattle has since become invasive and taken over much of the region’s mountainous grasslands. Similarly, pine has spread over much of the Himalayas and displaced native oak trees while teak has replaced sal, a native hardwood, in central India. Both oak and sal are valued for [...] fertiliser, medicine and oil. Their loss [...] impoverished many [local and Indigenous people]. [...]

India’s national forest policy [...] aims for trees on 33% of the country’s area. Schemes under this policy include plantations consisting of a single species such as eucalyptus or bamboo which grow fast and can increase tree cover quickly, demonstrating success according to this dubious measure. Sometimes these trees are planted in grasslands and other ecosystems where tree cover is naturally low. [...] The success of forest restoration efforts cannot be measured by tree cover alone. The Indian government’s definition of “forest” still encompasses plantations of a single tree species, orchards and even bamboo, which actually belongs to the grass family. This means that biennial forest surveys cannot quantify how much natural forest has been restored, or convey the consequences of displacing native trees with competitive plantation species or identify if these exotic trees have invaded natural grasslands which have then been falsely recorded as restored forests. [...] Planting trees does not necessarily mean a forest is being restored. And reviving ecosystems in which trees are scarce is important too.

Text by: Dhanapal Govindarajulu. "India was a tree planting laboratory for 200 years - here are the results." The Conversation. 10 August 2023. [Emphasis added.]

---

Nations and companies are competing to appropriate the last piece of available “untapped” forest that can provide the most amount of “environmental services.” [...] When British Empire forestry was first established as a disciplinary practice in India, [...] it proscribed private interests and initiated a new system of forest management based on a logic of utilitarian [extraction] [...]. Rather than the actual survival of plants or animals, the goal of this forestry was focused on preventing the exhaustion of resource extraction. [...]

Text by: Daniel Fernandez and Alon Schwabe. "The Offsetted." e-flux Architecture (Positions). November 2013. [Emphasis added.]

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At first glance, the statistics tell a hopeful story: Chile’s forests are expanding. […] On the ground, however, a different scene plays out: monocultures have replaced diverse natural forests [...]. At the crux of these [...] narratives is the definition of a single word: “forest.” [...] Pinochet’s wave of [...] [laws] included Forest Ordinance 701, passed in 1974, which subsidized the expansion of tree plantations [...] and gave the National Forestry Corporation control of Mapuche lands. This law set in motion an enormous expansion in fiber-farms, which are vast expanses of monoculture plantations Pinus radiata and Eucalyptus species grown for paper manufacturing and timber. [T]hese new plantations replaced native forests […]. According to a recent study in Landscape and Urban Planning, timber plantations expanded by a factor of ten from 1975 to 2007, and now occupy 43 percent of the South-central Chilean landscape. [...] While the confusion surrounding the definition of “forest” may appear to be an issue of semantics, Dr. Francis Putz [...] warns otherwise in a recent review published in Biotropica. […] Monoculture plantations are optimized for a single product, whereas native forests offer [...] water regulation, hosting biodiversity, and building soil fertility. [...][A]ccording to Putz, the distinction between plantations and native forests needs to be made clear. “[...] [A]nd the point that plantations are NOT forests needs to be made repeatedly [...]."

Text by: Julian Moll-Rocek. “When forests aren’t really forests: the high cost of Chile’s tree plantations.” Mongabay. 18 August 2014. [Emphasis added.]

[transmutationisms]

in addition to being prone to an obvious naturalistic fallacy, the oft-repeated claim that various supplements / herbs / botanicals are being somehow suppressed by pharmaceutical interests seeking to protect their own profits ('they would rather sell you a pill') belies a clear misunderstanding of the relationship between 'industrial' pharmacology and plant matter. bioprospecting, the search for plants and molecular components of plants that can be developed into commercial products, has been one of the economic motivations and rationalisations for european colonialism and imperialism since the so-called 'age of exploration'. state-funded bioprospectors specifically sought 'exotic' plants that could be imported to europe and sold as food or materia medica—often both, as in the cases of coffee or chocolate—or, even better, cultivated in 'economic' botanical gardens attached to universities, medical schools, or royal palaces and scientific institutions.

this fundamental attitude toward the knowledge systems and medical practices of colonised people—the position, characterising eg much 'ethnobotany', that such knowledge is a resource for imperialist powers and pharmaceutical manufacturers to mine and profit from—is not some kind of bygone historical relic. for example, since the 1880s companies including pfizer, bristol-myers squibb, and unilever have sought to create pharmaceuticals from african medicinal plants, such as strophanthus, cryptolepis, and grains of paradise. in india, state-created databases of valuable 'traditional' medicines have appeared partly in response to a revival of bioprospecting since the 1980s, in an increasingly bureaucratised form characterised by profit-sharing agreements between scientists and local communities that has nonetheless been referred to as "biocapitalism". a 1990 paper published in the proceedings of the novartis foundation symposium (then the ciba foundation symposium) spelled out this form of epistemic colonialism quite bluntly:

Ethnobotany, ethnomedicine, folk medicine and traditional medicine can provide information that is useful as a 'pre-screen' to select plants for experimental pharmacological studies.

there is no inherent oppositional relationship between pharmaceutical industry and 'natural' or plant-based cures. there are of course plenty of examples of bioprospecting that failed to translate into consumer markets: ginseng, introduced to europe in the 17th century through the mercantile system and the east india company, found only limited success in european pharmacology. and there are cases in which knowledge with potential market value has actually been suppressed for other reasons: the peacock flower, used as an abortifacient in the west indies, was 'discovered' by colonial bioprospectors in the 18th century; the plant itself moved easily to europe, but knowledge of its use in reproductive medicine became the subject of a "culturally cultivated ignorance," resulting from a combination of funding priorities, national policies, colonial trade patterns, gender politics, and the functioning of scientific institutions. this form of knowledge suppression was never the result of a conflict wherein bioprospectors or pharmacists viewed the peacock flower as a threat to their own profits; on the contrary, they essentially sacrificed potential financial benefits as a result of the political and social factors that made abortifacient knowledge 'unknowable' in certain state and commercial contexts.

exploitation of plant matter in pharmacology is not a frictionless or infallible process. but the sort of conspiratorial thinking that attempts to position plant therapeutics and 'big pharma' as oppositional or competitive forces is an ahistorical and opportunistic example of appealing to nominally anti-capitalist rhetoric without any deeper understanding of the actual mechanisms of capitalism and colonialism at play. this is of course true whether or not the person making such claims has any personal financial stake in them, though it is of course also true that, often, they do hold such stakes.

[mariacallous]

If you’ve rented an apartment in the US in the past several years, you may have had the sense that the game was rigged: Prices creep up not only at your building but at others throughout the city, seemingly in lockstep. A new civil lawsuit brought by the US Department of Justice today alleges that in many cases it’s not just in your head—and that a single company’s algorithm is to blame.

That company is RealPage, a Texas-based firm that provides commercial revenue management software for landlords. In other words, it helps set the prices of apartments. But it does so, the DOJ alleges in its lawsuit, by effectively helping its clients cheat; landlords feed rental rate and lease terms into the system, and the RealPage algorithm in turn spits out a suggested price that enables coordination and hinders competition.

“By feeding sensitive data into a sophisticated algorithm powered by artificial intelligence, RealPage has found a modern way to violate a century-old law through systematic coordination of rental housing prices,” deputy attorney general Lisa Monaco said in a statement.

RealPage’s reach is broad. It controls 80 percent of the market for software of its kind, which in turn is used to set prices of around 3 million units across the country, according to the DOJ. It already faces multiple lawsuits, including one from the state of Arizona and another in Washington, DC, where RealPage software is allegedly used to price more than 90 percent of units in large apartment buildings. RealPage’s algorithmic pricing first gained broader attention when a 2022 ProPublica investigation detailed how the company’s YieldStar software works.

The DOJ civil lawsuit, which was joined by the attorneys general of eight states, is a significant escalation in legal action against the company. It’s also a first for the DOJ, according to officials speaking on background during a call to discuss the complaint. While the government had previously filed criminal charges against an Amazon seller for algorithm-enabled price-fixing, this is the first civil action in which the algorithm itself, the Justice Department official says, was effectively the means of the violation.

The complaint itself quotes RealPage executives allegedly acknowledging anticompetitive aspects of its product. “There is greater good in everybody succeeding versus essentially trying to compete against one another in a way that actually keeps the entire industry down,” one RealPage executive allegedly wrote.

RealPage has repeatedly denied any allegations of antitrust violations, going so far as to publish a six-page digital pamphlet that claims to tell “the Real Story” about its products, along with an extensive FAQ page on a dedicated public policy website. The company did not immediately respond to a request for comment. “Attacks on the industry’s revenue management are based on demonstrably false information,” one section of that site reads. “RealPage revenue management software benefits both housing providers and residents.”

“We are disappointed that, after multiple years of education and cooperation on the antitrust matters concerning RealPage, the DOJ has chosen this moment to pursue a lawsuit that seeks to scapegoat pro-competitive technology that has been used responsibly for years,” said Jennifer Bowcock, senior vice president of communications and creative at RealPage, in an emailed statement. “RealPage’s revenue management software is purposely built to be legally compliant, and we have a long history of working constructively with the DOJ to show that."

The DOJ disagrees. “Algorithms don’t exist in a law-free zone,” said Monaco in a press conference to discuss the case. “Training a machine to break the law is still breaking the law.”

In this case, the complaint alleges that those algorithms consistently drove rental prices upward. “RealPage’s software tends to maximize price increases, minimize price decreases, and maximize landlords’ pricing power,” said the DOJ in a press release. RealPage also doesn’t just recommend prices; in many cases, it actively sets them.

“RealPage actively polices landlords’ compliance with those recommendations,” said US attorney general Merrick Garland in today’s press conference. “A large number of landlords effectively agree to outsource their pricing decisions to RealPage by using an ‘auto-accept’ setting that effectively permits RealPage to determine the price a renter will pay.”

The DOJ also claims RealPage has created a “self-reinforcing feedback loop” with its data intake and pricing recommendations structure that also gives it an alleged monopoly in the apartment revenue management software industry. Any competitor who plays by the rules, the DOJ claims, is at a distinct disadvantage.

The Justice Department has spent the past several years staffing up with technologists and data scientists, better enabling them to “interrogate the code,” as multiple officials described the investigative process. While this is the first major algorithmic collusion case, DOJ officials suggested it would be far from the last.

[warabidakihime]

Rules and Roses Chapter 2

★ characters: kibutsuji muzan x reader x akaza

★ plot summary: Kibutsuji Muzan has finally decided to expand his empire, and the way he intends to do so is by running for the highest political position. With you, his darling wife, at his side, he believes he can achieve and have everything the world has to offer. He is, after all, the Phoenix of Phario.

★ fic playlist: sometimes, same day, as time stops, wolf’s song (this is also the vision board for the fic). 

★ content warnings : implied violence and abuse, profanities, toxic relationships, smut.

★ Previous Chapter

a/n:

hello!!!

first of all, i am so sorry for taking so long to update this story. ٩(ˊᗜˋ*)و ♡

life happened and i got sooo busy. the time i uploaded this fic was when i just started at my new workplace and shortly after a few weeks, i was already preoccupied with work. at first, i was laser-focused on getting used to my new work and the culture. then later on, i found myself playing a more important role in the office that required my undivided attention lol. besides that, so many things happened in my personal life as well that i didn't have the time and energy to write.

btw i'm now a writer by profession as well so oftentimes i would feel drained af after writing corporate write-ups. tbh, i also got hit by writer's block, especially for this fic because the plot i have in mind for it is lowkey intricate, and for the most part, i haven't decided on what route i should take story-wise. so during those 2 years, i was constantly trying to reconstruct the story in my head, and here we are!

i'm back but i'm not so sure about updating regularly as i'm still incredibly busy, but i will do my best! the latest kny seasons inspired me to write again (aka my crush for muzan lol).

hopefully, everyone is still here to read this. ٩(ˊᗜˋ*)و ♡

as always, comments and kudos are highly appreciated!

happy reading!

-

"Can you outline your key policy platforms should you be elected President of Phario? Given your extensive background in the human resource industry as well as your rich connections owing to your business ventures in Obelisk Kibutsuji, do you first plan to address the pressing issue of the national unemployment rate?"

"Indeed, that's correct. As President, one of my top priorities will be to strengthen our nation's workforce, which is crucial for advancing our economy. I have a comprehensive plan focused on job creation, vocational training, and support for small businesses. These initiatives will not only reduce unemployment but also stimulate innovation and competitiveness within our economy.

I also aim to implement policies that ensure equal access to education, equipping our citizens with the skills needed for the evolving job market. Healthcare reform is high on my agenda. I'll ensure healthcare assistance is accessible to everyone, public hospitals are well-maintained, and healthcare workers are fairly compensated and protected by the state in any dire situations. Additionally, I'll push for technological advancements and infrastructure development to attract both local and foreign investments.

Addressing social issues is equally important, and as a devoted ally of these communities, I'm committed to fighting all forms of discrimination, especially against women and the LGBTQ+ community. We must ensure everyone, regardless of gender, sexual orientation, or identity, has equal opportunities and protections under the law.

Moreover, I'll advocate for the rights and welfare of people with disabilities, ensuring they have access to the necessary resources and support to lead fulfilling lives. This includes improving accessibility in public spaces and promoting inclusive employment practices.

Animal welfare will also be a significant focus. We need to enact and enforce laws that protect animals from abuse and ensure humane treatment.

Lastly, I'll champion the rights of minorities and immigrants. Our nation is built on the strength of its diversity, and it's imperative we create an inclusive society where everyone feels valued and respected. This includes reforming immigration policies to be fair and humane and implementing programs that support the integration and empowerment of minority communities.

In essence, my administration will be dedicated to creating a sustainable and inclusive economic environment where every Pharian has the opportunity to thrive and contribute to our nation's progress."

Muzan stood confidently at the podium, a modest yet proud smile gracing his face after addressing a journalist's question amidst a room bustling with media personnel.

Today was the day where presidential candidates shared their platforms, which also served as an open forum for engaging with the press and fielding inquiries on a wide array of topics—from current events to personal matters.

With his seasoned composure before cameras and crowds, Muzan navigated the spotlight effortlessly. His articulate delivery drew admiration from all corners as he outlined his plans for the presidency, filling you with pride as you watched from the audience.

Among the attendees, your smile beamed with pride and unconditional support for him. Akaza, who is sitting right beside you, maintained a stoic demeanor outwardly, though inwardly, he couldn't deny a hint of impressed regard. Muzan's comprehensive platform and commanding presence left an undeniable impact on him.

Eloquence had always been Muzan's forte, a skill honed through years of being a businessman and somewhat of a public figure, as among his peers and in the business landscape in general, he is well-revered and widely celebrated.

Beyond his ability to articulate ideas, he possessed a magnetic charisma—an invaluable trait for navigating the intricate world of politics and public service.

Several hours later, the policy speech slash press conference finally ended, and now you were on your way to meet up with Muzan at the lobby of the hotel where the gathering was held when a few journalists spotted you among the sea of people who were also exiting the function room.

Akaza was right behind you and is also on full alert, an important instruction your husband told him when he appointed him as your personal bodyguard a few years back. Committed to his duty, he stood there in a stance where he is ready to take action should anything happen that is out of the ordinary.

Mics were stretched out and placed within just a few inches of your face, and one of them took the liberty to ask you a question: "What are your thoughts on Kibutsuji Muzan's campaign platforms?” 

Very much like your husband, you also wore a modest yet confident smile on your face as you held eye contact with the journalist who asked you that question before displaying your own version of eloquence as you answered,

"To say that I am proud while listening to him share and advocate for the causes he wholeheartedly believed in would be the biggest understatement of the decade," you said with a fond chuckle before continuing, "even before he filed for his candidacy and even way before he became the man we all know now, he has always been outspoken about these things. He would always share with me his desire of making significant changes in the world, hoping no more children would have to endure what he did. As many of you know, Muzan, my dear husband, came from very humble beginnings, and unlike me, he has faced challenges far beyond my own. His vision and intuition surpass that of most, and so, as cliché as it may sound, his words and strong convictions carry a weight and authenticity that are strong enough to enable him in doing the impossible and inspire others to believe that a better future is within our grasp."

Akaza listened intently to your answer, finding himself captivated by your words. The way you addressed the press made you sound like a candidate yourself who's also sharing her platform. In that moment, he couldn't help but feel an overwhelming surge of pride as he continued to absorb your statements.

The journalists surrounding you mirrored his sentiment, clearly impressed by your response—no surprise from the esteemed Ballerina Queen of Phario.

It had been quite some time since you last entertained interviews, having retired and chosen to stay away from public engagements.

"Among the plethora of initiatives he wishes to take action on once he's elected, what resonated with you the most?"

You paused, contemplating the list of campaigns your husband had presented earlier. Just as you were about to respond, an arm encircled your waist and gave it a tender squeeze.

It was Muzan.

"Knowing my wife's love for animals, I'm certain she's most excited about what I have planned for animal welfare," Muzan interjected warmly.

You playfully rolled your eyes, eliciting amusement from not only your husband and your respective bodyguards but also the press. "You say that as if it's a bad thing," you quipped.

Muzan chuckled fondly. "Not at all, my love. Your passion for animals is one of the many reasons I fell for you."

The same journalist who had asked you the second question now directed his attention to Muzan, eager for his response. "Based on the most recent public survey, you're likely the most favored candidate to win the elections. What can you say about that, Sir Kibutsuji?"

Muzan smiled bashfully at the reporter, his eyes reflecting a mix of humility and determination. "I'm incredibly honored and thankful that our fellow countrymen have placed such faith and confidence in me. It's a humbling reminder of the trust they have in our vision for a brighter future. This campaign has always been about bringing real change to Phario, addressing the pressing issues our nation faces with innovative solutions and inclusive policies. The support we're seeing reflects not just my efforts, but the collective desire of our people for progress and unity."

He paused briefly, his gaze sweeping across the room, before continuing with renewed conviction, "Though I would like to emphasize that I don't take this trust lightly, it actually fuels my commitment to serve with integrity and purpose, to listen to the voices of every Pharian, and to lead with compassion and foresight."

By now, the press was highly satisfied with the answers both of you had given, granting you the freedom to depart. Clearly spent after the eventful day, you exchanged farewells and well-wishes before going your separate ways.

With Muzan's arm still draped around your waist, he guided you towards the grand entrance of the hotel. Meanwhile, Akaza made his way to the basement parking lot to retrieve your car, preparing to drive you both home. Kokushibo remained close to Muzan, ensuring your security as you awaited the car's arrival.

Turning to Muzan, unfazed by the bustling activity around you, you placed a tender kiss on his lips, smiling warmly. "Great job out there, my love. You did so well today. I'm incredibly proud of you."

Clearly elated, Muzan mirrored your smile and returned your affection with a gentle kiss on your forehead. "Thank you, darling. Your support means everything to me."

"Truly, I was beaming throughout your speech. You were absolutely amazing. Phario is fortunate to have such an admirable leader like you," you praised sincerely.

Right there and then, Muzan couldn't help but raise his eyebrow and playfully smile at you, prompting a confused raise of your own eyebrow.

"What's that look for?" you asked.

Muzan shook his head with a playful smirk before replying, "You're not showing favoritism now, are you, my love? I know you adore me, but let's keep it fair, hmm?" he teased, his tone light-hearted and affectionate.

You rolled your eyes at his playful accusation. "Ha-ha. Very funny, Muzan. I'll take it back, then."

Muzan laughed wholeheartedly, drawing attention once again. "I was just joking!" He then smiled warmly at you, his eyes reflecting pride. "Thank you," he said sincerely. "Hearing that from you means more than any applause, you know?"

You reached out to pinch his cheeks. "You play too much sometimes, you know?" you said with a chuckle before continuing, "But like I said, hearing you speak today—and in all those times you shared your aspirations with me from when we were students up to now, as you finally have the opportunity to make all come true—it's evident how deeply committed you are. Beyond your skills and capabilities, your passion is what makes you so compelling, Muzan. It's what makes me believe in you, too."

Minutes later, while waiting by the entrance, Akaza finally pulled up with the car. You and Muzan bid farewell to those around you before stepping into the comfort of your vehicle.

As the city lights blurred past the windows, you reflected on the day's events.

"You know," you began, glancing at Muzan beside you, "I have a feeling your speech today touched more hearts than just mine."

Muzan smiled softly, intertwining his fingers with yours. 

"I hope so. Though the election is still months away, and who knows how things might shift, that's why I don't want to take any of this for granted. I'm in this for the long haul. You'll be there with me, won't you?"

He looked over to you, and in that moment, despite his big words, he looked absolutely adorable, with his ruby eyes shining at you and his lips slightly pouty as he waited for your response, which you gladly provided through the means of placing yet another sweet and passionate kiss on his lips and squeezing his hand reassuringly. 

"I'll always be here for you, Muzan, through every challenge and triumph."

"I love you," he whispered lovingly, his expression sincere and heartfelt.

"And I love you," you replied with equal affection.

With a comforting squeeze of your hand, you nestled against Muzan's shoulder, feeling a sense of contentment as the car navigated through familiar streets towards home.

Meanwhile, in the driver's seat, Akaza's face remained unreadable. He was outwardly indifferent to the tender exchange between you and Muzan, but inwardly, he was seething with rage.

You think you're so clever, spouting all those promises and pretty words, playing the saint for the public eye. But I see through you. You're nothing but a manipulative snake, a liar wrapped in a facade of righteousness.

His gaze hardened and his grip on the wheel tightened as he stared ahead, the streetlights casting shadows on his determined expression.

One day, your mask will slip. 

I will fucking rip it off your face, even if it's the last thing I do.

[mostlysignssomeportents]

Cigna’s nopeinator

I'm touring my new, nationally bestselling novel The Bezzle! Catch me THURSDAY (May 2) in WINNIPEG, then Calgary (May 3), Vancouver (May 4), Tartu, Estonia, and beyond!

Cigna – like all private health insurers – has two contradictory imperatives:

To keep its customers healthy; and

To make as much money for its shareholders as is possible.

Now, there's a hypothetical way to resolve these contradictions, a story much beloved by advocates of America's wasteful, cruel, inefficient private health industry: "If health is a "market," then a health insurer that fails to keep its customers healthy will lose those customers and thus make less for its shareholders." In this thought-experiment, Cigna will "find an equilibrium" between spending money to keep its customers healthy, thus retaining their business, and also "seeking efficiencies" to create a standard of care that's cost-effective.

But health care isn't a market. Most of us get our health-care through our employers, who offer small handful of options that nevertheless manage to be so complex in their particulars that they're impossible to directly compare, and somehow all end up not covering the things we need them for. Oh, and you can only change insurers once or twice per year, and doing so incurs savage switching costs, like losing access to your family doctor and specialists providers.

Cigna – like other health insurers – is "too big to care." It doesn't have to worry about losing your business, so it grows progressively less interested in even pretending to keep you healthy.

The most important way for an insurer to protect its profits at the expense of your health is to deny care that your doctor believes you need. Cigna has transformed itself into a care-denying assembly line.

Dr Debby Day is a Cigna whistleblower. Dr Day was a Cigna medical director, charged with reviewing denied cases, a job she held for 20 years. In 2022, she was forced out by Cigna. Writing for Propublica and The Capitol Forum, Patrick Rucker and David Armstrong tell her story, revealing the true "equilibrium" that Cigna has found:

https://www.propublica.org/article/cigna-medical-director-doctor-patient-preapproval-denials-insurance

Dr Day took her job seriously. Early in her career, she discovered a pattern of claims from doctors for an expensive therapy called intravenous immunoglobulin in cases where this made no medical sense. Dr Day reviewed the scientific literature on IVIG and developed a Cigna-wide policy for its use that saved the company millions of dollars.

This is how it's supposed to work: insurers (whether private or public) should permit all the medically necessary interventions and deny interventions that aren't supported by evidence, and they should determine the difference through internal reviewers who are treated as independent experts.

But as the competitive landscape for US healthcare dwindled – and as Cigna bought out more parts of its supply chain and merged with more of its major rivals – the company became uniquely focused on denying claims, irrespective of their medical merit.

In Dr Day's story, the turning point came when Cinga outsourced pre-approvals to registered nurses in the Philippines. Legally, a nurse can approve a claim, but only an MD can deny a claim. So Dr Day and her colleagues would have to sign off when a nurse deemed a procedure, therapy or drug to be medically unnecessary.

This is a complex determination to make, even under ideal circumstances, but Cigna's Filipino outsource partners were far from ideal. Dr Day found that nurses were "sloppy" – they'd confuse a mother with her newborn baby and deny care on that grounds, or confuse an injured hip with an injured neck and deny permission for an ultrasound. Dr Day reviewed a claim for a test that was denied because STI tests weren't "medically necessary" – but the patient's doctor had applied for a test to diagnose a toenail fungus, not an STI.

Even if the nurses' evaluations had been careful, Dr Day wanted to conduct her own, thorough investigation before overriding another doctor's judgment about the care that doctor's patient warranted. When a nurse recommended denying care "for a cancer patient or a sick baby," Dr Day would research medical guidelines, read studies and review the patient's record before signing off on the recommendation.

This was how the claims denial process is said to work, but it's not how it was supposed to work. Dr Day was markedly slower than her peers, who would "click and close" claims by pasting the nurses' own rationale for denying the claim into the relevant form, acting as a rubber-stamp rather than a skilled reviewer.

Dr Day knew she was slower than her peers. Cigna made sure of that, producing a "productivity dashboard" that scored doctors based on "handle time," which Cigna describes as the average time its doctors spend on different kinds of claims. But Dr Day and other Cigna sources say that this was a maximum, not an average – a way of disciplining doctors.

These were not long times. If a doctor asked Cigna not to discharge their patient from hospital care and a nurse denied that claim, the doctor reviewing that claim was supposed to spend not more than 4.5 minutes on their review. Other timelines were even more aggressive: many denials of prescription drugs were meant to be resolved in fewer than two minutes.

Cigna told Propublica and The Capitol Forum that its productivity scores weren't based on a simple calculation about whether its MD reviewers were hitting these brutal processing time targets, describing the scores as a proprietary mix of factors that reflected a nuanced view of care. But when Propublica and The Capitol Forum created a crude algorithm to generate scores by comparing a doctor's performance relative to the company's targets, they found the results fit very neatly into the actual scores that Cigna assigned to its docs:

The newsrooms’ formula accurately reproduced the scores of 87% of the Cigna doctors listed; the scores of all but one of the rest fell within 1 to 2 percentage points of the number generated by this formula. When asked about this formula, Cigna said it may be inaccurate but didn’t elaborate.

As Dr Day slipped lower on the productivity chart, her bosses pressured her bring her score up (Day recorded her phone calls and saved her emails, and the reporters verified them). Among other things, Dr Day's boss made it clear that her annual bonus and stock options were contingent on her making quota.

Cigna denies all of this. They smeared Dr Day as a "disgruntled former employee" (as though that has any bearing on the truthfulness of her account), and declined to explain the discrepancies between Dr Day's accusations and Cigna's bland denials.

This isn't new for Cigna. Last year, Propublica and Capitol Forum revealed the existence of an algorithmic claims denial system that allowed its doctors to bulk-deny claims in as little as 1.2 seconds:

https://www.propublica.org/article/cigna-pxdx-medical-health-insurance-rejection-claims

Cigna insisted that this was a mischaracterization, saying the system existed to speed up the approval of claims, despite the first-hand accounts of Cigna's own doctors and the doctors whose care recommendations were blocked by the system. One Cigna doctor used this system to "review" and deny 60,000 claims in one month.

Beyond serving as an indictment of the US for-profit health industry, and of Cigna's business practices, this is also a cautionary tale about the idea that critical AI applications can be resolved with "humans in the loop."

AI pitchmen claim that even unreliable AI can be fixed by adding a "human in the loop" that reviews the AI's judgments:

https://pluralistic.net/2024/04/23/maximal-plausibility/#reverse-centaurs

In this world, the AI is an assistant to the human. For example, a radiologist might have an AI double-check their assessments of chest X-rays, and revisit those X-rays where the AI's assessment didn't match their own. This robot-assisted-human configuration is called a "centaur."

In reality, "human in the loop" is almost always a reverse-centaur. If the hospital buys an AI, fires half its radiologists and orders the remainder to review the AI's superhuman assessments of chest X-rays, that's not an AI assisted radiologist, that's a radiologist-assisted AI. Accuracy goes down, but so do costs. That's the bet that AI investors are making.

Many AI applications turn out not to even be "AI" – they're just low-waged workers in an overseas call-center pretending to be an algorithm (some Indian techies joke that AI stands for "absent Indians"). That was the case with Amazon's Grab and Go stores where, supposedly, AI-enabled cameras counted up all the things you put in your shopping basket and automatically billed you for them. In reality, the cameras were connected to Indian call-centers where low-waged workers made those assessments:

https://pluralistic.net/2024/01/29/pay-no-attention/#to-the-little-man-behind-the-curtain

This Potemkin AI represents an intermediate step between outsourcing and AI. Over the past three decades, the growth of cheap telecommunications and logistics systems let corporations outsource customer service to low-waged offshore workers. The corporations used the excuse that these subcontractors were far from the firm and its customers to deny them any agency, giving them rigid scripts and procedures to follow.

This was a very usefully dysfunctional system. As a customer with a complaint, you would call the customer service line, wait for a long time on hold, spend an interminable time working through a proscribed claims-handling process with a rep who was prohibited from diverging from that process. That process nearly always ended with you being told that nothing could be done.

At that point, a large number of customers would have given up on getting a refund, exchange or credit. The money paid out to the few customers who were stubborn or angry enough to karen their way to a supervisor and get something out of the company amounted to pennies, relative to the sums the company reaped by ripping off the rest.

The Amazon Grab and Go workers were humans in robot suits, but these customer service reps were robots in human suits. The software told them what to say, and they said it, and all they were allowed to say was what appeared on their screens. They were reverse centaurs, serving as the human faces of the intransigent robots programmed by monopolists that were too big to care.

AI is the final stage of this progression: robots without the human suits. The AI turns its "human in the loop" into a "moral crumple zone," which Madeleine Clare Elish describes as "a component that bears the brunt of the moral and legal responsibilities when the overall system malfunctions":

https://estsjournal.org/index.php/ests/article/view/260

The Filipino nurses in the Cigna system are an avoidable expense. As Cigna's own dabbling in algorithmic claim-denial shows, they can be jettisoned in favor of a system that uses productivity dashboards and other bossware to push doctors to robosign hundreds or thousands of denials per day, on the pretense that these denials were "reviewed" by a licensed physician.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/04/29/what-part-of-no/#dont-you-understand