WEBVTT - Bloomberg Law Weekend: Google, Tesla, Alito

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<v Speaker 1>This is Bloomberg Law.

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<v Speaker 2>What does a prosecutor have to prove in order to

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<v Speaker 2>get a Rico conviction? Tell us why this solicitor General

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<v Speaker 2>is sometimes referred to as the tenth Justice.

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<v Speaker 1>Interviews with prominent attorneys in Bloomberg Legal Experts.

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<v Speaker 2>That's Jennifer k for Bloomberg Law. Joining me is former

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<v Speaker 2>federal prosecutor Robert miss.

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<v Speaker 1>And analysis of important legal issues cases in headlines.

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<v Speaker 2>It's the toughest hurdle for prosecutors proving Trump's intent. Alito

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<v Speaker 2>took on Congress, saying Congress has no power to regulate

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<v Speaker 2>the Supreme Court.

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<v Speaker 1>Bloomberg Law with June Grosso from Bloomberg Radio.

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<v Speaker 2>Welcome to the Bloomberg Law Show. I'm June Grosso. Ahead

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<v Speaker 2>in this hour a landmark anti trust case against Google,

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<v Speaker 2>the controversial decision limiting the administration's communications with social media companies.

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<v Speaker 2>Justice Alito rejects calls for his recusal in a major

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<v Speaker 2>tax case, and Tesla's ban on US union shirts goes

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<v Speaker 2>all the way to a federal appellate court. The United

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<v Speaker 2>States versus Google, the first trial pitting the federal government

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<v Speaker 2>against a US technology company in more than two decades,

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<v Speaker 2>began in a DC federal court on Tuesday. The Justice

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<v Speaker 2>Department and state attorneys general alleged that Google illegally monopolized

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<v Speaker 2>the online search market by paying billions of dollars to

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<v Speaker 2>tech rival smartphone makers and wireless providers in exchange for

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<v Speaker 2>being the default search engine on browsers and mobile devices.

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<v Speaker 2>But Google's top lawyer, Can't Walker, told CBS News that

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<v Speaker 2>consumers use the search engine because it's helpful and it's

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<v Speaker 2>easy to switch to another search engine.

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<v Speaker 1>It really couldn't be easier.

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<v Speaker 3>You can sit at home on your couch and change

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<v Speaker 3>what search engine you're using.

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<v Speaker 1>It's as easy as changing your shoes.

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<v Speaker 2>My guest is antitrust expert Harry First, a professor at

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<v Speaker 2>NYU Law School. Harry, just how important is this case?

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<v Speaker 4>This is an important case, at least symbolically and maybe practically.

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<v Speaker 4>So symbolically it's important. It is the first case in

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<v Speaker 4>more than two decades to challenge a durable, high tech monopoly.

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<v Speaker 4>So the last case was brought in May of nineteen

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<v Speaker 4>ninety eight, so that's a quarter of a century since

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<v Speaker 4>the last one, and that was against Microsoft, and since

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<v Speaker 4>that time nothing, So it is symbolically important because it

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<v Speaker 4>shows the federal government and the state any trust enforces

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<v Speaker 4>turning their attention to big power in our economy.

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<v Speaker 2>The government says that Google paid more than ten billion

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<v Speaker 2>dollars a year for exclusive agreements to make Google the

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<v Speaker 2>default search engine on mobile phones and browsers. Is there

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<v Speaker 2>anything wrong with that with the company saying I'll pay

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<v Speaker 2>you if you do this and we both benefit.

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<v Speaker 4>Well, the definition of an agreement is we both benefit.

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<v Speaker 4>So the question is whether these agreements helped to maintain

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<v Speaker 4>Google's monopoly position. So firms entered into lots of agreements

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<v Speaker 4>across the economy, of course, and most of them are lawful.

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<v Speaker 4>But when it comes to monopoly firms, firms that have

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<v Speaker 4>a monopoly position, they can't use agreements to unreasonably exclude competitors.

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<v Speaker 4>And that's what the government plaintiffs are arguing that these

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<v Speaker 4>agreements unreasonably excluded good competitors who were foreclosed from, you know,

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<v Speaker 4>getting their search engines in front of consumers so they

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<v Speaker 4>could use them, and so that they could get more

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<v Speaker 4>and more searches done on them and continuously do what

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<v Speaker 4>Google had been able to do. And they were monopolists.

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<v Speaker 4>More and more data, more and more data, and so

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<v Speaker 4>get better results, have a better search engine. So the

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<v Speaker 4>argument is that they excluded competitors through these agreements.

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<v Speaker 2>In the opening statements, Google's lawyer argued that consumers don't

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<v Speaker 2>use Google because they have to. They use it because

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<v Speaker 2>they want to, and if they want to switch, it's

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<v Speaker 2>easy enough, right.

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<v Speaker 4>So that is a factual argument in essence, but it's

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<v Speaker 4>also an appeal to framing the case in a way

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<v Speaker 4>favorable to Google and in a way that they hope

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<v Speaker 4>will appeal to the judge. So Google's basic argument is,

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<v Speaker 4>are you kidding me? This is the greatest product ever?

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<v Speaker 4>Why do people use it? You know, nobody's holding a

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<v Speaker 4>gun to their head. They use it because it's darn good.

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<v Speaker 4>And you know, nothing is stopping consumers from changing those

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<v Speaker 4>the falls. They could do it. You know it's easy

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<v Speaker 4>enough to do, So tell me why they don't do it.

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<v Speaker 4>I'll tell you why they don't do it. They don't

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<v Speaker 4>do it because they get a great product and they're

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<v Speaker 4>happy with it. And in the end, Google says, and

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<v Speaker 4>this is true, the purpose of the any trust laws

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<v Speaker 4>is to serve consumers. That's what markets are for, and

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<v Speaker 4>consumers are being very well served. So why are you bringing.

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<v Speaker 1>This case government?

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<v Speaker 2>Is that the only argument you think they're going to make.

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<v Speaker 4>Well, there are lots of legal arguments along the way.

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<v Speaker 4>They may argue that search actually isn't a product because

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<v Speaker 4>it's on price free. You know, you can't raise its price.

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<v Speaker 4>You can't lower its price the product if there's a

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<v Speaker 4>product involved as advertising, you know, and then what's the

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<v Speaker 4>advertising market? They'll argue that, okay, if search is a product,

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<v Speaker 4>you know, there are lots of ways to search for information.

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<v Speaker 4>Even on the Internet. There are lots of ways to

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<v Speaker 4>search for information. So for example, you know, people search

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<v Speaker 4>for information on TikTok. Maybe not you or me, but

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<v Speaker 4>younger people do. People search for information on Amazon, you know,

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<v Speaker 4>if they are looking for a product, lots of people

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<v Speaker 4>just go right to Amazon and look for it. They

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<v Speaker 4>don't look for it on Google. So there are lots

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<v Speaker 4>of different ways to search for things, and Google is

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<v Speaker 4>if search is a product, Google doesn't control it. Consumers

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<v Speaker 4>control it. They those keyboards and make their choices.

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<v Speaker 2>The judge asked Google's lawyer to respond to the Justice

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<v Speaker 2>Department's allegation that quote, what you say, our competition for

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<v Speaker 2>defaults are not really competition at all that. Really, only

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<v Speaker 2>Google can be selected for the default. Explain why that's important.

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<v Speaker 4>So Google was selected for the default because they paid

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<v Speaker 4>for it in one way or another, either through the

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<v Speaker 4>revenue share or for saying, you know, if you want

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<v Speaker 4>all these apps, you've got to make it a default,

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<v Speaker 4>or they paid Apple large sums of money. The question

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<v Speaker 4>is more, what does a default mean? Default is an exclusivity.

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<v Speaker 4>It's just the start, It's where things start. It's default.

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<v Speaker 4>So you know, Google wants to say, there's still plenty

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<v Speaker 4>of consumer choice. So Google isn't controlling it. Consumers are

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<v Speaker 4>controlling it. I think the judge has already shown a

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<v Speaker 4>little skepticism about an argument that the faults don't matter,

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<v Speaker 4>which is I think what Google wants to say, You know,

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<v Speaker 4>they don't matter because they're changeable. And I think, you know,

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<v Speaker 4>the judge is my recollection was pressing Google's council already

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<v Speaker 4>for saying, well, give me some examples to consumers changing.

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<v Speaker 2>Harry as a lawyer, which side would you rather be on,

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<v Speaker 2>the governments or Googles?

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<v Speaker 4>I think the government's case is strong. Actually now, I

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<v Speaker 4>say that in part because there's been a test run.

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<v Speaker 4>In a way the European Commission already found a lot

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<v Speaker 4>of this stuff to be in European competitional abusive dominance,

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<v Speaker 4>the agreements relating to mobile distribution, not the browser part.

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<v Speaker 4>And you know, one good reasoning that doesn't compel the

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<v Speaker 4>same results in the United States, but it's pretty similar.

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<v Speaker 4>It's similar to arguments that were made in the Microsoft

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<v Speaker 4>case about contracts that were exclusive and effectively excluded Netscape

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<v Speaker 4>the browser, even though you know you could still get

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<v Speaker 4>a browser in different ways. Now you may remember, I remember,

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<v Speaker 4>you know, it used to be well, if you couldn't

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<v Speaker 4>get the browser pre installed on a Dell PC, they

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<v Speaker 4>came in the mail. Hey, there's plenty of distribution in

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<v Speaker 4>the court that there. You know, it doesn't have to

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<v Speaker 4>completely foreclose you, but it just shuts off basically the

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<v Speaker 4>most efficient way of distribution. And in that old day,

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<v Speaker 4>the OEMs, the Dells of the world compact didn't want

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<v Speaker 4>to put a second browser on because of cost. And

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<v Speaker 4>here they get that same default, even though they technically

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<v Speaker 4>don't call it exclusive. It's the same sort of thing.

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<v Speaker 4>So I think the government has a strong case. Obviously,

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<v Speaker 4>it's not a lay down case. I haven't heard any

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<v Speaker 4>talk of settlement. So Google presumably feels that it might

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<v Speaker 4>be able to win a trial, and there's a long

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<v Speaker 4>time between here and there, As they say, before there's

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<v Speaker 4>some resolution of this case, because this is really we're

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<v Speaker 4>just at the beginning of it.

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<v Speaker 2>In its lawsuit against Google, the Justice Department pointed to

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<v Speaker 2>that Microsoft case and said that Google deploys the same

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<v Speaker 2>playbook as Microsoft did. How much does this case borrow

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<v Speaker 2>from the Microsoft case or echo the Microsoft case.

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<v Speaker 4>I think there are a lot of similarities. You know, Microsoft,

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<v Speaker 4>a lot of the exclusionary work was done by exclusive

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<v Speaker 4>contracts that they had with service providers, with cool so forth.

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<v Speaker 4>They paid the money, So there are a lot of

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<v Speaker 4>factual similarities. I don't think there's the same sort of

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<v Speaker 4>technicological effort of tying Google Search to something, which is

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<v Speaker 4>what Microsoft did with the Internet Explorer browser. But it's

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<v Speaker 4>quite similar. And the District Court has already followed the

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<v Speaker 4>legal playbook as well. I mean, the government, i think,

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<v Speaker 4>has tried to say, hey, this is Microsoft, and you

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<v Speaker 4>know how that came out, and legally, the district court

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<v Speaker 4>judges already followed the way the Court of Appeals set

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<v Speaker 4>out the structure for analyzing the problem. The district Court

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<v Speaker 4>has already chosen that in the earlier decision that made

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<v Speaker 4>the case. So Microsoft is going to be very important

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<v Speaker 4>in this case. But you know, in the end, facts

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<v Speaker 4>are very important. So we'll see yet how the judge

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<v Speaker 4>feels about the arguments on default and how much of

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<v Speaker 4>the market was really foreclosed by this or you know,

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<v Speaker 4>how you figure that out. So that's yet to be seen.

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<v Speaker 2>Yes, a lot more to come. This is just the

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<v Speaker 2>first stage of the trial and the judge isn't expected

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<v Speaker 2>to make a decision until next year. If he finds

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<v Speaker 2>that Google broke the law, then a second phase will

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<v Speaker 2>determine remedies. So will surely be talking to you again, Harry,

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<v Speaker 2>Thanks so much. That's Professor Harry First of NYU Law School.

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<v Speaker 2>Coming up next a decision limiting administration officials communications with

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<v Speaker 2>social media companies. I'm June Grosse. When you're listening to Bloomberg, this.

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<v Speaker 1>Is Bloomberg Law with June Grosso from Bloomberg Radio.

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<v Speaker 2>The Supreme Court has paused a ruling that restricts the

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<v Speaker 2>Biden administration's contacts with social media companies. The administrative stay

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<v Speaker 2>granted by Justice Samuel Leto is a stopgap measure while

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<v Speaker 2>the justices consider how to handle the First Amendment clash

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<v Speaker 2>ruled on by the Fifth Circuit Court of Appeals last Friday.

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<v Speaker 2>That Circuit court concluded that the Biden White House, the

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<v Speaker 2>Surgeon General, the CDC, and the FBI likely violated free

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<v Speaker 2>speech rights by coercing social media platforms to take down

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<v Speaker 2>posts on their sites at times with intimidating messages and

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<v Speaker 2>threats of adverse consequences. White House Press Secretary Karine Jean

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<v Speaker 2>Pierre has said that communications by Biden officials with the

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<v Speaker 2>social media companies was not coercive.

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<v Speaker 3>We have promoted responsible actions to protect public health, safety,

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<v Speaker 3>and security when confronted by challenges like a deadly pandemic

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<v Speaker 3>and foreign attacks on our elections, and we have consistently

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<v Speaker 3>made clear that we believe social media companies have a

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<v Speaker 3>critical responsibility to take account of the effects of their

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<v Speaker 3>platforms that they have on the American people while making

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<v Speaker 3>independent decisions about the content of their platforms.

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<v Speaker 2>Joining me is Professor Eric Goleman of the Santa Clara

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<v Speaker 2>University School of Law. He's also a co director of

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<v Speaker 2>the High Tech Law Institute. Eric what was the main

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<v Speaker 2>issue in the Fifth Circuit case.

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<v Speaker 5>The basic question is when were conversations that were taking

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<v Speaker 5>place between the government and social media services becoming so

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<v Speaker 5>coersive or so directed that the social media services were

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<v Speaker 5>doing the government's bidding and removing content at their direction.

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<v Speaker 2>Did the Fifth Circuit find that there were actual threats

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<v Speaker 2>made to social media companies?

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<v Speaker 5>It did, But the threats are always a little bit vague.

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<v Speaker 5>It's not always as easy as you must do X

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<v Speaker 5>or we will throw you in jail. The threats are

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<v Speaker 5>often more indirect, and that's one of the many challenges

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<v Speaker 5>from this opinion. It wasn't entirely clear to me exactly

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<v Speaker 5>which threats mattered, were when they even became threats, and.

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<v Speaker 2>What did the injunction specifically prohibit Biden administration officials from doing.

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<v Speaker 5>The actual implementation of the injunction is no more clear

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<v Speaker 5>than before the opinion. What the court said is that

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<v Speaker 5>certain branch of the government, specifically they called out the

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<v Speaker 5>White House and the FBI must comply with the rules

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<v Speaker 5>articulated in the court. But the Court didn't provide concrete

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<v Speaker 5>boundaries around those rules, simply said you must comply with

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<v Speaker 5>the Constitution. So, in a sense, I don't know how

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<v Speaker 5>the executive branches are going to implement what the court's

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<v Speaker 5>ordering them to do because it's saying comply with the Constitution.

0:14:13.240 --> 0:14:15.480
<v Speaker 5>But obviously, the people who made the decision in the

0:14:15.480 --> 0:14:18.600
<v Speaker 5>first place weren't clear what was constitutional what wasn't, and

0:14:18.640 --> 0:14:19.960
<v Speaker 5>I don't know they're ingclearer now.

0:14:20.520 --> 0:14:24.840
<v Speaker 2>It also says they can't significantly encourage platforms to remove

0:14:24.960 --> 0:14:29.920
<v Speaker 2>lawful content. So what does significantly encourage mean exactly?

0:14:30.000 --> 0:14:34.680
<v Speaker 5>That's the point. The significant encouragement is the boundary around

0:14:34.760 --> 0:14:39.240
<v Speaker 5>the constitutional protections. In other words, if they're significantly encouraging

0:14:39.280 --> 0:14:42.800
<v Speaker 5>the removal of constitutional content that's not constitutional, that's a

0:14:42.880 --> 0:14:47.360
<v Speaker 5>violation of the First Amendment. However, what constitutes this significant

0:14:47.440 --> 0:14:50.920
<v Speaker 5>encouragement is not made clear by the opinion. They do

0:14:51.080 --> 0:14:54.320
<v Speaker 5>point to a few examples, but I don't think I

0:14:54.400 --> 0:14:57.720
<v Speaker 5>would know how to actually interpret that language. And so

0:14:58.000 --> 0:15:01.880
<v Speaker 5>what's likely to happen is that if this opinion stands,

0:15:02.120 --> 0:15:06.600
<v Speaker 5>the regulated entities are going to become far less conversational

0:15:06.680 --> 0:15:09.000
<v Speaker 5>with the social media services. They're not going to take

0:15:09.040 --> 0:15:12.960
<v Speaker 5>a chance about violating the rule. So the court standard

0:15:13.000 --> 0:15:17.240
<v Speaker 5>actually clears out a lot of permitted behavior today. Because

0:15:17.280 --> 0:15:19.760
<v Speaker 5>the boundary is so unclear, people are going to err

0:15:19.840 --> 0:15:21.240
<v Speaker 5>on the side of being cautious.

0:15:21.640 --> 0:15:24.840
<v Speaker 2>Well, that's what the Republicans who brought this case want,

0:15:25.000 --> 0:15:28.960
<v Speaker 2>isn't it. The Missouri ag Andrew Bailey, said that the

0:15:29.080 --> 0:15:33.200
<v Speaker 2>ruling was another brick in the wall of separation between

0:15:33.400 --> 0:15:34.360
<v Speaker 2>tech and state.

0:15:34.720 --> 0:15:38.400
<v Speaker 5>No doubt many people wish that the government would not

0:15:38.520 --> 0:15:42.400
<v Speaker 5>be in conversations with social media services, and yet the

0:15:42.600 --> 0:15:46.360
<v Speaker 5>court's opinion really cuts the shut over dialogues that take

0:15:46.400 --> 0:15:51.280
<v Speaker 5>place every day, all the time throughout our entire country

0:15:51.760 --> 0:15:56.160
<v Speaker 5>between governments and private entities, not just social media services.

0:15:56.640 --> 0:16:00.800
<v Speaker 5>This concern about significant encouragement or coercion and comes up

0:16:01.000 --> 0:16:04.640
<v Speaker 5>across the board in lots of spaces, and the quest

0:16:04.640 --> 0:16:07.840
<v Speaker 5>standard puts potentially many or all of those in play.

0:16:08.280 --> 0:16:11.600
<v Speaker 5>Opens up the door for lots of people to challenge

0:16:11.720 --> 0:16:15.120
<v Speaker 5>government conversations that are just in the public health and

0:16:15.160 --> 0:16:17.720
<v Speaker 5>safety interest. Gom's just trying to do its job to

0:16:17.840 --> 0:16:21.520
<v Speaker 5>protected citizens, and now this court casts a doubt on

0:16:21.560 --> 0:16:23.040
<v Speaker 5>the legitimacy of those efforts.

0:16:23.240 --> 0:16:26.520
<v Speaker 2>The Biden administration had said that it was pushing social

0:16:26.560 --> 0:16:31.160
<v Speaker 2>media companies to just adhere to their own rules about content.

0:16:31.720 --> 0:16:34.800
<v Speaker 2>Did you see a First Amendment violation here?

0:16:35.120 --> 0:16:39.840
<v Speaker 5>There's no doubt that some individual employees of the government

0:16:40.200 --> 0:16:45.320
<v Speaker 5>pushed the frontiers, perhaps to or over the limit. That's

0:16:45.720 --> 0:16:49.320
<v Speaker 5>just the nature of individual government employees so zealously trying

0:16:49.360 --> 0:16:52.440
<v Speaker 5>to do their job, they might get a little bit excited.

0:16:52.840 --> 0:16:56.280
<v Speaker 5>Having said that, I think that overall a number of

0:16:56.320 --> 0:16:59.600
<v Speaker 5>the social media services appreciate the feedback from the government.

0:16:59.720 --> 0:17:02.080
<v Speaker 5>They want to hear from the government because the government

0:17:02.240 --> 0:17:06.600
<v Speaker 5>sees things that they don't or is a good neutral

0:17:06.760 --> 0:17:10.879
<v Speaker 5>source of assessing risks in the community that need to

0:17:10.920 --> 0:17:13.680
<v Speaker 5>be addressed, and so it's helpful for the social media

0:17:13.720 --> 0:17:16.440
<v Speaker 5>services to hear from the government. The risk that the

0:17:16.480 --> 0:17:20.000
<v Speaker 5>government is assessing what might be done to address those risks.

0:17:20.240 --> 0:17:23.800
<v Speaker 5>That's actually helpful and that informs the social media service's

0:17:23.920 --> 0:17:29.400
<v Speaker 5>own independent turtle discretion. So the line between that kind

0:17:29.440 --> 0:17:34.840
<v Speaker 5>of activity and the overzealous pushing by some government employees

0:17:35.040 --> 0:17:39.000
<v Speaker 5>is really thin. And we want fewer of the overzeala's stuff,

0:17:39.000 --> 0:17:41.320
<v Speaker 5>but we definitely want the other stuff to continue. And

0:17:41.359 --> 0:17:43.680
<v Speaker 5>that's the part that I don't think the government employees

0:17:43.680 --> 0:17:46.240
<v Speaker 5>are going to know where they are on that spectrum.

0:17:46.680 --> 0:17:50.480
<v Speaker 2>I thought it was interesting that doctor Anthony Fauci, who

0:17:50.520 --> 0:17:55.719
<v Speaker 2>came under such criticism from conservatives during COVID, you know,

0:17:55.760 --> 0:17:58.760
<v Speaker 2>the Fifth Circuit said, no, he did, Okay, he was fine.

0:17:59.200 --> 0:18:02.040
<v Speaker 5>Yeah. I think the Fifth Circuit was trying not to

0:18:02.800 --> 0:18:07.720
<v Speaker 5>engage in partisan politics. Fauci was the targeted conservative iyre,

0:18:07.840 --> 0:18:11.280
<v Speaker 5>and so they weren't pandering to that ire. And yet

0:18:11.520 --> 0:18:15.159
<v Speaker 5>the entire structure of the opinion really does validate a

0:18:15.200 --> 0:18:17.760
<v Speaker 5>lot of the conservative objectives in a way that I

0:18:17.800 --> 0:18:20.400
<v Speaker 5>think fundamentally on their minds. Part of the health and safety.

0:18:20.560 --> 0:18:22.440
<v Speaker 5>So it's kind of like, what do we really want

0:18:22.480 --> 0:18:24.760
<v Speaker 5>from the government, And I don't know that I share

0:18:24.800 --> 0:18:27.560
<v Speaker 5>the Fifth Circus vision of what it wants from the government.

0:18:27.800 --> 0:18:31.240
<v Speaker 2>I always point out that the Fifth Circuit is considered

0:18:31.320 --> 0:18:34.800
<v Speaker 2>the most conservative appellate court in the country, and we've

0:18:34.840 --> 0:18:39.240
<v Speaker 2>seen these judges make rulings that were outliers before, and

0:18:39.800 --> 0:18:42.639
<v Speaker 2>it's getting reversed by the Supreme Court more than it

0:18:42.680 --> 0:18:43.000
<v Speaker 2>used to.

0:18:43.240 --> 0:18:46.320
<v Speaker 5>Well, the good news is that this particular opinion fixed

0:18:46.400 --> 0:18:49.919
<v Speaker 5>an even worse District Court opinion that was a true outlier,

0:18:50.080 --> 0:18:53.919
<v Speaker 5>and even that opinion was too much for the Fifth Circuit.

0:18:54.000 --> 0:18:56.760
<v Speaker 5>They could not stand behind this opinion that had just

0:18:56.880 --> 0:19:00.360
<v Speaker 5>gone rogue on the rule of law. So In that sense,

0:19:00.359 --> 0:19:03.200
<v Speaker 5>the Fifth circu opinion is definitely better than the District

0:19:03.280 --> 0:19:06.239
<v Speaker 5>Court opinion that preceded it. And yet I don't know

0:19:06.280 --> 0:19:08.480
<v Speaker 5>what would happen if the Fifth Circuit opinion is appealed

0:19:08.480 --> 0:19:09.520
<v Speaker 5>to the Supreme Court.

0:19:09.760 --> 0:19:13.240
<v Speaker 2>The Biden administration told the Supreme Court it's going to

0:19:13.280 --> 0:19:15.960
<v Speaker 2>ask the court to take the case on appeal, and

0:19:16.000 --> 0:19:20.119
<v Speaker 2>in the meantime, Justice Samuel Alito granted the government's request

0:19:20.480 --> 0:19:23.879
<v Speaker 2>for a temporary stay. Does the Justice Department have a

0:19:23.920 --> 0:19:27.000
<v Speaker 2>good argument for the court to take this case.

0:19:27.240 --> 0:19:31.080
<v Speaker 5>The opinion, Although it narrowed the injunction quite a bit,

0:19:31.520 --> 0:19:36.760
<v Speaker 5>it still leaves a core injunction against key executive branch agencies,

0:19:37.000 --> 0:19:41.040
<v Speaker 5>restricting their ability to do their job and leaving such

0:19:41.119 --> 0:19:43.959
<v Speaker 5>ambiguity about how they can do their job that it

0:19:44.200 --> 0:19:47.320
<v Speaker 5>seems like they need the Supreme Court to give the

0:19:47.320 --> 0:19:51.680
<v Speaker 5>government more guidance. It wouldn't surprise me if the states

0:19:51.800 --> 0:19:54.280
<v Speaker 5>that are the plaintiffs in this case also appeal the

0:19:54.359 --> 0:19:56.520
<v Speaker 5>ruling because they want to pick up the stuff they

0:19:56.520 --> 0:19:58.639
<v Speaker 5>had gotten in the District Court that the Fifth Circuit

0:19:58.680 --> 0:20:01.399
<v Speaker 5>took away. So it's entirely possible both sides will be

0:20:01.480 --> 0:20:03.520
<v Speaker 5>encouraged in the Supreme Court to take this case.

0:20:03.480 --> 0:20:06.800
<v Speaker 2>And we'll know more by next Friday when Alito's stay ends.

0:20:07.280 --> 0:20:10.520
<v Speaker 2>Thanks Eric, that's Professor Eric Goleman of the Santa Clara

0:20:10.680 --> 0:20:15.400
<v Speaker 2>University School of Law. Coming up next, Justice Alito refuses

0:20:15.520 --> 0:20:18.680
<v Speaker 2>to recuse. I'm June Grosso and you're listening to Bloomberg.

0:20:22.040 --> 0:20:26.840
<v Speaker 1>This is Bloomberg Law with June Grosso from Bloomberg Radio.

0:20:28.000 --> 0:20:31.600
<v Speaker 2>At a judicial conference in August, Justice Elena Kagan was

0:20:31.640 --> 0:20:35.119
<v Speaker 2>asked about Congress's power to check the Supreme Court.

0:20:35.359 --> 0:20:37.840
<v Speaker 6>It just can't be that the Court is the only

0:20:37.960 --> 0:20:41.720
<v Speaker 6>institution that somehow is not subject to any checks and

0:20:41.840 --> 0:20:46.200
<v Speaker 6>balances from anybody else. I mean, we're not imperial, and

0:20:46.600 --> 0:20:49.240
<v Speaker 6>we too are a part of a checking and balancing

0:20:49.280 --> 0:20:54.240
<v Speaker 6>system in various ways. So can Congress do various things

0:20:54.280 --> 0:20:57.920
<v Speaker 6>to regulate the Supreme Court? I think the answer is yes.

0:20:58.800 --> 0:21:02.880
<v Speaker 2>Justice Kagan's answer may have been yes, but Justice Samuel

0:21:02.920 --> 0:21:06.679
<v Speaker 2>Alito's answer was no. In a July interview for The

0:21:06.720 --> 0:21:10.439
<v Speaker 2>Wall Street Journal, Alito said Congress did not have the

0:21:10.520 --> 0:21:13.919
<v Speaker 2>power to impose an ethics code on the Supreme Court.

0:21:14.359 --> 0:21:17.359
<v Speaker 2>That interview has now led to calls for Alito to

0:21:17.480 --> 0:21:20.879
<v Speaker 2>recuse himself. Not because of the content of the piece,

0:21:21.119 --> 0:21:24.360
<v Speaker 2>but because one of the writers is an attorney involved

0:21:24.359 --> 0:21:27.800
<v Speaker 2>in a major tax case coming before the court this term.

0:21:28.000 --> 0:21:32.280
<v Speaker 2>Alito has refused to recuse himself, explaining why in an

0:21:32.359 --> 0:21:36.119
<v Speaker 2>unusual statement released by the Court last Friday, joining me

0:21:36.200 --> 0:21:40.000
<v Speaker 2>is constitutional law scholar David Souper, a professor at Georgetown

0:21:40.080 --> 0:21:43.040
<v Speaker 2>Law School, tell us a little more about the background

0:21:43.080 --> 0:21:45.240
<v Speaker 2>of this recusal dispute.

0:21:45.440 --> 0:21:50.040
<v Speaker 7>Certainly, Justice Alito perceived correctly that he was under considerable

0:21:50.080 --> 0:21:54.679
<v Speaker 7>criticism in the media and responded in a number of ways,

0:21:54.840 --> 0:21:58.760
<v Speaker 7>partly by writing an op ed defending himself and partly

0:21:58.800 --> 0:22:04.080
<v Speaker 7>by giving two interviews to a lawyer who was interviewing

0:22:04.119 --> 0:22:07.919
<v Speaker 7>him for the Wall Street Journal. That lawyer is now

0:22:08.280 --> 0:22:13.359
<v Speaker 7>one of the lawyers behind an effort to have large

0:22:13.440 --> 0:22:17.679
<v Speaker 7>chunks of our tex system declared unconstitutional, that is in

0:22:17.720 --> 0:22:21.480
<v Speaker 7>front of the court. Several people, including a number of Senators,

0:22:21.480 --> 0:22:26.040
<v Speaker 7>have suggested that Justice Alto should refuse himself because of

0:22:26.440 --> 0:22:30.040
<v Speaker 7>the ties to the lawyer who twice interviewed him, and

0:22:30.280 --> 0:22:32.520
<v Speaker 7>Justice Alito has said he will do no such things.

0:22:32.840 --> 0:22:36.359
<v Speaker 2>A group of Democrats, led by Senatjudiciary chaired Dick Durbin,

0:22:36.480 --> 0:22:39.600
<v Speaker 2>call for his recusal in a letter to the Chief Justice,

0:22:39.680 --> 0:22:43.840
<v Speaker 2>and Alito attached his statement in response to a Supreme

0:22:43.880 --> 0:22:47.120
<v Speaker 2>Court orders list, And if you look at it quickly,

0:22:47.400 --> 0:22:50.600
<v Speaker 2>it looks like a decision of the court, complete with footnotes.

0:22:51.080 --> 0:22:54.400
<v Speaker 2>How unusual is it on a scale of.

0:22:54.400 --> 0:22:57.760
<v Speaker 7>One to ten, pretty close to a ten. I think

0:22:57.800 --> 0:22:59.920
<v Speaker 7>you can get to a ten if you come by

0:23:00.119 --> 0:23:04.119
<v Speaker 7>in the very unusual form, and that the content is

0:23:04.160 --> 0:23:05.840
<v Speaker 7>also extremely strange.

0:23:06.080 --> 0:23:09.080
<v Speaker 2>He said that there was nothing out of the ordinary

0:23:09.200 --> 0:23:13.159
<v Speaker 2>about the interviews in question, and then he refers to

0:23:13.320 --> 0:23:17.320
<v Speaker 2>in footnotes interviews that various justices have done with members

0:23:17.320 --> 0:23:20.960
<v Speaker 2>of the media and says, well, they didn't recuse themselves

0:23:21.000 --> 0:23:25.080
<v Speaker 2>when cases involving those media entities came before the court.

0:23:25.160 --> 0:23:27.520
<v Speaker 2>But I don't know of any case where the journalists

0:23:27.960 --> 0:23:29.880
<v Speaker 2>then came before the court.

0:23:30.160 --> 0:23:35.640
<v Speaker 7>I don't either. It's also pretty unusual because Justice Alito

0:23:35.800 --> 0:23:43.000
<v Speaker 7>himself described this PR campaign as his self defense. Judges

0:23:43.160 --> 0:23:46.600
<v Speaker 7>talked to journalists to educate the public about the law

0:23:46.720 --> 0:23:50.840
<v Speaker 7>all the time, that's all fine, but he said that

0:23:50.960 --> 0:23:53.240
<v Speaker 7>no one was defending him, so he would have to

0:23:53.280 --> 0:23:58.760
<v Speaker 7>defend himself and launched this PR campaign. The lawyer in

0:23:58.840 --> 0:24:02.280
<v Speaker 7>this case helped to him with his pr campaign. Something

0:24:02.320 --> 0:24:05.159
<v Speaker 7>that people in this town pay tens and hundreds of

0:24:05.200 --> 0:24:08.840
<v Speaker 7>thousands of dollars for was given to him free, and

0:24:08.880 --> 0:24:13.119
<v Speaker 7>then this lawyer who did this enormous favor to him

0:24:13.560 --> 0:24:16.119
<v Speaker 7>is arguing a case in front of the court that's

0:24:16.440 --> 0:24:18.199
<v Speaker 7>unprecedented to my knowledge.

0:24:18.920 --> 0:24:22.960
<v Speaker 2>There's also the fact that when the first article was

0:24:23.000 --> 0:24:26.680
<v Speaker 2>published in April, the justices hadn't yet agreed to hear

0:24:26.720 --> 0:24:28.920
<v Speaker 2>the case. They agreed in June, and then the second

0:24:29.000 --> 0:24:32.440
<v Speaker 2>article was published in July. So the timing alone gives

0:24:32.440 --> 0:24:33.840
<v Speaker 2>the appearance of impropriety.

0:24:34.280 --> 0:24:38.040
<v Speaker 7>Well, any participation, whether it's in considering whether to take

0:24:38.119 --> 0:24:41.919
<v Speaker 7>the case or in deciding it, is improper if you

0:24:42.000 --> 0:24:44.679
<v Speaker 7>have a conflict of interest, and when someone has just

0:24:44.760 --> 0:24:48.480
<v Speaker 7>provided you services which, by your own admission, you felt

0:24:48.520 --> 0:24:52.520
<v Speaker 7>you badly needed, and those services have enormous value. That's

0:24:52.560 --> 0:24:55.679
<v Speaker 7>precisely why we have conflict of interest law. There's nothing

0:24:55.720 --> 0:24:59.000
<v Speaker 7>wrong with his getting these services. He just shouldn't participate

0:24:59.040 --> 0:25:01.960
<v Speaker 7>in a case that being litigated by the person who

0:25:01.960 --> 0:25:02.600
<v Speaker 7>provided them.

0:25:02.960 --> 0:25:06.800
<v Speaker 2>Something he said is something that I think Justice Thomas

0:25:06.840 --> 0:25:09.680
<v Speaker 2>has said too, which to me, this is the point

0:25:09.680 --> 0:25:12.800
<v Speaker 2>about ethics. He said they didn't discuss the tax case,

0:25:12.880 --> 0:25:16.680
<v Speaker 2>either directly or indirectly. Well, I mean, that's not the point,

0:25:16.760 --> 0:25:18.439
<v Speaker 2>is it, whether they discuss the case.

0:25:19.240 --> 0:25:21.679
<v Speaker 7>Well, that's certainly not the point. I mean, if a

0:25:21.800 --> 0:25:27.240
<v Speaker 7>lawyer in the case had given a car or a

0:25:27.359 --> 0:25:32.280
<v Speaker 7>house to a Supreme Court justice while not discussing the

0:25:32.320 --> 0:25:36.240
<v Speaker 7>case they were litigating, that justice should still refuse themselves

0:25:36.280 --> 0:25:39.800
<v Speaker 7>from the case that that lawyer was arguing, because they

0:25:40.000 --> 0:25:43.359
<v Speaker 7>obviously owe the lawyer or something and will have a

0:25:43.440 --> 0:25:44.680
<v Speaker 7>temptation to repay it.

0:25:45.080 --> 0:25:49.639
<v Speaker 2>Judiciary Chairman Dick Durbin's response was quote Justice Alito, of

0:25:49.680 --> 0:25:52.679
<v Speaker 2>the originalist school of thinking that empty seats on an

0:25:52.680 --> 0:25:56.320
<v Speaker 2>airplane don't count as gifts, surprises no one by sitting

0:25:56.400 --> 0:25:58.840
<v Speaker 2>on a case involving a lawyer who honored him with

0:25:58.880 --> 0:26:01.880
<v Speaker 2>a puff piece in the World Street Journal that referred

0:26:01.880 --> 0:26:05.800
<v Speaker 2>to Alito accepting a trip to a luxury fishing lodge

0:26:05.840 --> 0:26:09.879
<v Speaker 2>in Alaska from wealthy Republican donors. But there have been

0:26:09.880 --> 0:26:12.880
<v Speaker 2>a string of ethical lapses by some of the justices,

0:26:13.119 --> 0:26:14.880
<v Speaker 2>especially Clarence Thomas.

0:26:15.600 --> 0:26:19.800
<v Speaker 7>Yes, this one, though, is really more striking because Justice

0:26:19.960 --> 0:26:26.560
<v Speaker 7>Alito is saying that he should be able to rise

0:26:26.640 --> 0:26:31.680
<v Speaker 7>above his debt that he owes this lawyer and decide

0:26:31.720 --> 0:26:35.920
<v Speaker 7>the case fairly, which shows a fundamental misunderstanding of conflicts

0:26:35.960 --> 0:26:38.439
<v Speaker 7>of interest law. The whole point of conflicts of interest

0:26:38.520 --> 0:26:41.119
<v Speaker 7>law is that we don't want to ask people to

0:26:41.240 --> 0:26:44.000
<v Speaker 7>rise above their conflicts, and we don't want to ask

0:26:44.040 --> 0:26:46.879
<v Speaker 7>the public to trust that that has happened. Instead, we

0:26:46.960 --> 0:26:50.840
<v Speaker 7>eliminate the conflicts by having people who are conflicted not

0:26:51.320 --> 0:26:55.239
<v Speaker 7>involved in cases and with judges, the goal is to

0:26:55.320 --> 0:26:57.840
<v Speaker 7>avoid the appearance of impropriety.

0:26:58.000 --> 0:27:03.280
<v Speaker 2>The Judiciary Chair wrote to Chief Justice Roberts, Can Roberts

0:27:03.359 --> 0:27:06.480
<v Speaker 2>do anything when Alito says, nope, I'm not going to

0:27:06.480 --> 0:27:07.360
<v Speaker 2>recuse myself.

0:27:07.800 --> 0:27:08.000
<v Speaker 1>Yeah.

0:27:08.280 --> 0:27:11.199
<v Speaker 7>The Chief Justice, combined with the other justice can do

0:27:11.320 --> 0:27:14.560
<v Speaker 7>quite a great deal. Towards the end of Justice Douglas's

0:27:14.680 --> 0:27:18.800
<v Speaker 7>service on the Court, the other justice concluded that he

0:27:19.200 --> 0:27:24.399
<v Speaker 7>didn't have enough mental acuity to make responsible decisions, so

0:27:24.480 --> 0:27:27.760
<v Speaker 7>they informally agreed that they would not decide any case

0:27:27.800 --> 0:27:30.600
<v Speaker 7>in which his was the fifth vote. The other justices

0:27:30.800 --> 0:27:35.520
<v Speaker 7>can similarly decide that they will not decide any case

0:27:35.880 --> 0:27:39.520
<v Speaker 7>in which Justice Alito's is the fifth vote, or they

0:27:39.520 --> 0:27:43.560
<v Speaker 7>could simply vote to reject this case because they can't

0:27:43.640 --> 0:27:48.919
<v Speaker 7>hear it in impartial circumstances. It's called dismissed as improvidently

0:27:49.040 --> 0:27:53.240
<v Speaker 7>granted or dig. They can dig the case to prevent

0:27:53.680 --> 0:27:56.560
<v Speaker 7>Justice Alito from participating in it. But this goes way

0:27:56.600 --> 0:28:01.879
<v Speaker 7>beyond Justice Alito or Justice Thomas, other justices, and it

0:28:01.920 --> 0:28:05.120
<v Speaker 7>only takes five of them to make an order. They

0:28:05.160 --> 0:28:08.760
<v Speaker 7>can adopt an ethics code, they can adopt rules for accusal,

0:28:09.280 --> 0:28:12.680
<v Speaker 7>and it does not have to be unanimous. Many orders

0:28:12.720 --> 0:28:15.159
<v Speaker 7>of the Court, of course, are not unanimous, so the

0:28:15.240 --> 0:28:18.879
<v Speaker 7>others haven't need to step up. If they want the

0:28:18.920 --> 0:28:21.199
<v Speaker 7>public to respect the Court and if they want the

0:28:21.240 --> 0:28:23.880
<v Speaker 7>Court to do its business in a way that's worthy

0:28:23.920 --> 0:28:25.080
<v Speaker 7>of the public's competence.

0:28:25.440 --> 0:28:28.200
<v Speaker 2>It seems like a three prong problem. You have the

0:28:28.280 --> 0:28:32.800
<v Speaker 2>court's ethics controversies, you have the limited transparency at the court,

0:28:32.840 --> 0:28:35.919
<v Speaker 2>and then you have also these far reaching rulings that

0:28:36.640 --> 0:28:39.320
<v Speaker 2>bring the public's attention to the Court and its power.

0:28:39.840 --> 0:28:43.680
<v Speaker 7>Yeah, and that's the combination. Now, there's a majority of

0:28:43.720 --> 0:28:46.520
<v Speaker 7>the Court that is very conservative, and even on a

0:28:46.560 --> 0:28:50.840
<v Speaker 7>case that neither Justice Thomas nor Justice Leader were participating in,

0:28:50.920 --> 0:28:53.520
<v Speaker 7>there would still be a conservative majority on the Court.

0:28:53.920 --> 0:28:58.120
<v Speaker 7>The question is, why do they insist on proceeding in

0:28:58.200 --> 0:29:01.080
<v Speaker 7>a way that is, at once they're in bold and

0:29:01.160 --> 0:29:05.360
<v Speaker 7>at the same time raises serious ethical questions, and that's

0:29:05.480 --> 0:29:08.960
<v Speaker 7>very hard to understand. And then why the other justices

0:29:09.000 --> 0:29:11.400
<v Speaker 7>don't seem to see this is the problem worth addressing

0:29:11.840 --> 0:29:13.160
<v Speaker 7>is also hard to understand.

0:29:13.600 --> 0:29:16.120
<v Speaker 2>You talked about the various things that could be done

0:29:16.240 --> 0:29:19.640
<v Speaker 2>by the Supreme Court justices, But do you think that

0:29:19.840 --> 0:29:22.680
<v Speaker 2>anything will really be done in the end about either

0:29:22.840 --> 0:29:25.760
<v Speaker 2>just As Alito or just As Thomas by the Court itself.

0:29:26.080 --> 0:29:30.200
<v Speaker 7>I don't think they'll take action directly against them. That's

0:29:30.400 --> 0:29:33.920
<v Speaker 7>not how I close system like the Supreme Court typically works.

0:29:34.000 --> 0:29:37.240
<v Speaker 7>But I think they might very well establish a code

0:29:37.240 --> 0:29:39.720
<v Speaker 7>of ethics going forward. It won't deal with all the

0:29:39.760 --> 0:29:43.720
<v Speaker 7>problems we've had, it won't deal with how much, particularly

0:29:43.720 --> 0:29:48.160
<v Speaker 7>these two justices have committed themselves to a narrow set

0:29:48.240 --> 0:29:52.520
<v Speaker 7>of right wing billionaires, but it can limit what happens

0:29:52.600 --> 0:29:56.400
<v Speaker 7>going forward and hopefully keep this sort of thing from

0:29:56.640 --> 0:29:59.680
<v Speaker 7>snowballing as it obviously has with these two justices.

0:30:00.080 --> 0:30:02.200
<v Speaker 2>Well, we'll see if this is the last word on

0:30:02.920 --> 0:30:06.560
<v Speaker 2>Justice Alito's recusal or not. Thanks so much, David. That's

0:30:06.600 --> 0:30:10.440
<v Speaker 2>Professor David super of Georgetown Law School coming up. Next

0:30:10.440 --> 0:30:14.280
<v Speaker 2>on the Bloomberg Law Show, a controversial appellate court ruling

0:30:14.560 --> 0:30:19.080
<v Speaker 2>that the Biden administration coerced social media platforms to take

0:30:19.120 --> 0:30:22.720
<v Speaker 2>down posts on their sites. I'm Junengrosso and you're listening

0:30:22.800 --> 0:30:23.520
<v Speaker 2>to Bloomberg.

0:30:26.760 --> 0:30:32.000
<v Speaker 1>This is Bloomberg Law with June Brusso from Bloomberg Radio.

0:30:32.680 --> 0:30:36.720
<v Speaker 3>The money is there, the cause is righteous, the world

0:30:36.800 --> 0:30:41.160
<v Speaker 3>is watching, and the UAW is ready to stand up.

0:30:41.600 --> 0:30:43.120
<v Speaker 1>This is our defining moment.

0:30:44.000 --> 0:30:48.000
<v Speaker 2>It certainly was an unprecedented moment, as the United Auto

0:30:48.040 --> 0:30:52.360
<v Speaker 2>Workers went on strike Friday against all three Detroit automakers,

0:30:52.560 --> 0:30:56.640
<v Speaker 2>a strategy announced by its president Sean Fain. Of course,

0:30:56.720 --> 0:31:00.160
<v Speaker 2>Tesla doesn't have to worry about strikes. It's the the

0:31:00.200 --> 0:31:04.760
<v Speaker 2>only major US auto manufacturer not represented by a union.

0:31:05.120 --> 0:31:09.000
<v Speaker 2>The electric car makers legal disputes over union organizing are

0:31:09.040 --> 0:31:12.520
<v Speaker 2>no secret, and the legal fight over Tesla's ban on

0:31:12.640 --> 0:31:16.520
<v Speaker 2>workers wearing union shirts on its electric car production line

0:31:16.640 --> 0:31:19.600
<v Speaker 2>has reached the Fifth Circuit Court of Appeals. Joining me

0:31:19.680 --> 0:31:23.160
<v Speaker 2>is labor law expert Kate Andreas, a professor at Columbia

0:31:23.240 --> 0:31:27.040
<v Speaker 2>Law School. Kate is a ban on union shirts unusual.

0:31:27.560 --> 0:31:30.480
<v Speaker 2>I mean a lot of places even require uniforms.

0:31:30.960 --> 0:31:35.320
<v Speaker 8>Since the nineteen forties. The NLRB has held, with Supreme

0:31:35.320 --> 0:31:40.200
<v Speaker 8>Court approval that workers are allowed to wear union insignia,

0:31:40.560 --> 0:31:44.640
<v Speaker 8>including union T shirts, unless there's a special business reason

0:31:44.800 --> 0:31:46.840
<v Speaker 8>for an employer to prohibit it. So it is the

0:31:46.840 --> 0:31:50.240
<v Speaker 8>case that a lot of employers have uniform requirements, but

0:31:50.320 --> 0:31:55.320
<v Speaker 8>they have to permit workers to wear union buttons, union stickers,

0:31:55.440 --> 0:31:58.800
<v Speaker 8>union shirts unless there's some business reason why doing so

0:31:59.440 --> 0:32:03.240
<v Speaker 8>is trumental to the business. The board has recognized that

0:32:03.560 --> 0:32:06.160
<v Speaker 8>showing your support for the union is an important part

0:32:06.200 --> 0:32:09.080
<v Speaker 8>of how workers organized unions, and it's an important part

0:32:09.080 --> 0:32:12.160
<v Speaker 8>of workers right to expression at work right. It's their

0:32:12.240 --> 0:32:14.560
<v Speaker 8>right to communicate their support for the union, and that

0:32:14.720 --> 0:32:16.640
<v Speaker 8>is protected by the NRA.

0:32:17.200 --> 0:32:20.240
<v Speaker 2>Did a factor in it all that Tesla adopted this

0:32:20.400 --> 0:32:24.440
<v Speaker 2>policy in twenty seventeen during a campaign by the UAW

0:32:24.600 --> 0:32:26.360
<v Speaker 2>to organize production workers.

0:32:26.960 --> 0:32:30.680
<v Speaker 8>The Tesla's position was that ad adopted the ban because

0:32:30.720 --> 0:32:35.600
<v Speaker 8>there were problems with production, that Tesla vehicles were getting

0:32:35.680 --> 0:32:38.200
<v Speaker 8>harmed in some way in production, so it tightened up

0:32:38.200 --> 0:32:41.720
<v Speaker 8>this uniform rules. But what the board said was, well,

0:32:41.880 --> 0:32:45.120
<v Speaker 8>if you had, for example, made a progression on wearing

0:32:45.200 --> 0:32:48.240
<v Speaker 8>sharp implements, that would be understandable, right because you might

0:32:48.560 --> 0:32:51.680
<v Speaker 8>rip a our speed if you're wearing a sharp implement.

0:32:52.040 --> 0:32:54.520
<v Speaker 8>But what you can't do is adopt a rule that

0:32:54.600 --> 0:32:57.800
<v Speaker 8>there's no special business reason for it, And you certainly

0:32:57.840 --> 0:33:00.480
<v Speaker 8>can't do it if there's the possibility that you're doing

0:33:00.520 --> 0:33:03.680
<v Speaker 8>it in order to coerce workers and exercise of their

0:33:03.840 --> 0:33:07.160
<v Speaker 8>union organizing rights, that you're trying to discriminate against union activity.

0:33:07.320 --> 0:33:10.040
<v Speaker 8>But even if it's adopted for other reasons, it's not

0:33:10.200 --> 0:33:13.600
<v Speaker 8>permissible unless the employer can show that there's a need

0:33:13.640 --> 0:33:13.880
<v Speaker 8>for it.

0:33:14.080 --> 0:33:18.200
<v Speaker 2>But it seemed like the Fifth Circuit judges were concentrating

0:33:18.440 --> 0:33:23.080
<v Speaker 2>on the difference between dress codes that don't allow any

0:33:23.120 --> 0:33:27.240
<v Speaker 2>expression of union support and those like Tesla's that permit

0:33:27.600 --> 0:33:31.280
<v Speaker 2>workers to wear union stickers and the like. One of

0:33:31.280 --> 0:33:35.200
<v Speaker 2>the judges said, a sticker says go union, union is

0:33:35.240 --> 0:33:38.440
<v Speaker 2>good or whatever. In what way is that an insufficient

0:33:38.600 --> 0:33:43.760
<v Speaker 2>means of communication? So were these judges ignoring that precedent

0:33:43.880 --> 0:33:45.320
<v Speaker 2>you just told us about.

0:33:45.440 --> 0:33:47.320
<v Speaker 8>Right, So one of the judges seem to be saying,

0:33:47.880 --> 0:33:51.520
<v Speaker 8>if the employer gives workers some way to communicate their support,

0:33:51.720 --> 0:33:56.000
<v Speaker 8>that's enough that the employer gets to decide how workers

0:33:56.040 --> 0:33:58.600
<v Speaker 8>can communicate their support for the union. That is not

0:33:58.720 --> 0:34:02.600
<v Speaker 8>what the precedent has held since nineteen forty five. Other

0:34:02.680 --> 0:34:05.720
<v Speaker 8>than that brief period during the Trump administration. Since nineteen

0:34:05.760 --> 0:34:08.560
<v Speaker 8>forty five, the Board has said the employer doesn't get

0:34:08.600 --> 0:34:11.239
<v Speaker 8>to decide that it doesn't like union shirts or it

0:34:11.280 --> 0:34:14.480
<v Speaker 8>doesn't like union buttons unless there's a business reason for that.

0:34:14.680 --> 0:34:18.200
<v Speaker 8>So if the Fifth Circuit ends up adopting the reasoning

0:34:18.200 --> 0:34:20.880
<v Speaker 8>that was suggested in oral arguments, that would be a

0:34:20.880 --> 0:34:24.080
<v Speaker 8>real retrenchment of where workers' rights have been for a

0:34:24.120 --> 0:34:24.600
<v Speaker 8>long time.

0:34:25.160 --> 0:34:29.319
<v Speaker 2>I find it surprising that Tesla would bother to go

0:34:29.360 --> 0:34:32.440
<v Speaker 2>through these appeals and everything over this issue when I'm

0:34:32.480 --> 0:34:33.240
<v Speaker 2>missing something.

0:34:33.800 --> 0:34:35.600
<v Speaker 8>I think there are two things going on. One is

0:34:35.640 --> 0:34:40.319
<v Speaker 8>that employers like Tesla do everything they can to try

0:34:40.360 --> 0:34:44.160
<v Speaker 8>to stop workers from organizing unions. And so in every case,

0:34:44.280 --> 0:34:47.640
<v Speaker 8>if they're able to exert more authority over the workplace

0:34:47.680 --> 0:34:51.200
<v Speaker 8>and narrow the ability of workers to engage in organizing

0:34:51.239 --> 0:34:54.640
<v Speaker 8>activity that is very important to them that precedent for

0:34:54.880 --> 0:34:57.359
<v Speaker 8>user cases, it sends a message to workers, even if

0:34:57.360 --> 0:34:59.600
<v Speaker 8>it doesn't set precedent, that it's going to be very

0:34:59.640 --> 0:35:02.680
<v Speaker 8>different to win a union. And so I think that

0:35:02.800 --> 0:35:07.080
<v Speaker 8>explains why Tesla's pursuing what seems like a relatively minor issue.

0:35:07.239 --> 0:35:11.040
<v Speaker 2>Thanks Kate. That's Professor Kate Andreas of Columbia Law School.

0:35:11.360 --> 0:35:14.600
<v Speaker 2>This is Bloomberg Law on Bloomberg Radio. I'm June Grosso.

0:35:15.000 --> 0:35:18.280
<v Speaker 2>Stay with us. Today's top stories and global business headlines

0:35:18.280 --> 0:35:19.680
<v Speaker 2>are coming up right now