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Welcome and Happy Tuesday! Follow our cyber reporter, Maggie Miller (@magmill95), and tech team, Chris Mills Rodrigo (@millsrodrigo) and Rebecca Klar (@rebeccaklar_), for more coverage. 

President BidenJoe BidenKentucky lawmaker faces scrutiny for comparing Fauci to Jonestown cult leader Omar leads lawmakers in calling for US envoy to combat Islamophobia Public charter schools group blasts proposed Democratic cut MORE on Tuesday declared his intent to nominate an individual to lead the Department of Justice’s antitrust division that has the backing of organizations looking to crackdown on anticompetitive behavior among Big Tech companies. Meanwhile, cybersecurity continues to be a hot topic in the nation’s capital, with the House approving a raft of bills Tuesday intended to shore up critical infrastructure against attacks, and the Transportation Security Administration putting out a new directive to protect pipelines from hackers. Outside of the beltway, Amazon founder and former CEO Jeff BezosJeffrey (Jeff) Preston BezosOn The Money: Schumer pressured from all sides on spending strategy | GOP hammers HUD chief over sluggish rental aid | Democrat proposes taxes on commercial space flights Hillicon Valley: Biden to appoint Big Tech critic to DOJ antitrust role | House passes host of bills to strengthen cybersecurity in wake of attacks | Bezos returns from flight to space Overnight Health Care: Fauci clashes with Paul – again | New York reaches .1B settlement with opioid distributors | Delta variant accounts for 83 percent of US COVID-19 cases MORE blasted off to the edge of space, drawing criticism from some officials for how funding was obtained. 

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BIG TECH TRIO:  President Biden plans to appoint lawyer Jonathan Kanter as the head of the Department of Justice’s (DOJ) antitrust division, the White House announced Tuesday, another sign of the administration’s intention to take on Big Tech. 

Kanter has been a favorite pick of progressive organizations pushing for the DOJ and Federal Trade Commission (FTC) to do more to crack down on anti-competitive conduct, especially in the tech industry.

Kanter, who started his own law firm last year, has represented companies seeking to push antitrust enforcers into suing Google. If confirmed he would hold the position of assistant attorney general for the antitrust division.

Kanter would join FTC chair Lina KhanLina KhanHillicon Valley: Biden to appoint Big Tech critic to DOJ antitrust role | House passes host of bills to strengthen cybersecurity in wake of attacks | Bezos returns from flight to space House passes bill to revive FTC authority to recover money for consumers Biden to appoint Big Tech critic to DOJ antitrust role MORE and White House economic adviser Tim Wu in a growing group of outspoken Big Tech critics in the Biden administration.

Read more reactions.

 

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HOUSE GOES WILD ON CYBER: The House on Tuesday approved five bipartisan measures designed to enhance various aspects of the nation’s cybersecurity following recent major cyberattacks. 

The cyber-related package passed in a 319-105 vote. It included measures to fund cybersecurity at the state and local level, bolster reporting requirements and test critical infrastructure.

Read about the bills approved here.

 

BEZOS BLASTS OFF: Jeff Bezos, the billionaire founder and former CEO of Amazon, successfully returned to Earth from his trip to the edge of space on Tuesday morning, touching down at around 9:22 a.m. ET.

Bezos launched into space aboard a rocket and capsule that was developed by his spaceflight company, Blue Origin. 

The flight lasted roughly 11 minutes. It took off from a site in the West Texas desert.

Read more about the launch. 

 

Congress weighs in: Rep. Alexandria Ocasio-CortezAlexandria Ocasio-CortezHillicon Valley: Biden to appoint Big Tech critic to DOJ antitrust role | House passes host of bills to strengthen cybersecurity in wake of attacks | Bezos returns from flight to space Schumer feels pressure from all sides on spending strategy Duckworth, Pressley introduce bill to provide paid family leave for those who experience miscarriage MORE (D-N.Y.) on Tuesday lashed out at Amazon founder Jeff Bezos, alluding to poor conditions for his employees after he thanked workers and customers upon return from space launch.

“Yes, Amazon workers did pay for this,” she said. “With lower wages, union busting, a frenzied and inhumane workplace, and delivery drivers not having health insurance during a pandemic.”

And Rep. Earl BlumenauerEarl BlumenauerOn The Money: Schumer pressured from all sides on spending strategy | GOP hammers HUD chief over sluggish rental aid | Democrat proposes taxes on commercial space flights Hillicon Valley: Biden to appoint Big Tech critic to DOJ antitrust role | House passes host of bills to strengthen cybersecurity in wake of attacks | Bezos returns from flight to space Democrat proposes taxes on commercial space flights for nonscientific purposes MORE (D-Ore.), a senior member of the tax-writing House Ways and Means Committee, said Tuesday that he is planning to introduce legislation that would establish excise taxes on commercial space flights with human passengers that aren’t focused on scientific research.

Read more about Ocasio-Cortez’s comments and Blumenauer’s proposal. 

 

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NO MORE TESTS: Amazon is ending its coronavirus testing at warehouses at the end of July.

An internal memo sent to employees on Monday said Amazon will end its testing program at its warehouses on July 30. The news was first reported by tech publication The Information.

Amazon says the testing program could resume immediately depending on local and national guidance. 

In the memo, the company cited the broader availability of testing and the fact employees “have many options available to them, including through health providers and public testing sites” for the reason to end the program.

Read more here. 

 

PROTECT THE PIPELINES: The Transportation Security Administration (TSA) on Tuesday issued a second security directive meant to strengthen critical pipelines against cyberattacks in the wake of the crippling ransomware attack on Colonial Pipeline earlier this year. 

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Under the directive, owners and operators of critical pipelines transporting gasoline or other hazardous liquids are required to take specific security measures to protect against ransomware attacks, develop recovery plans in the event of an attack and review their existing cybersecurity plans.

The first security directive was issued by TSA, which falls under the Department of Homeland Security (DHS), in May, and required pipeline companies to report cybersecurity incidents within 12 hours to the Cybersecurity and Infrastructure Security Agency (CISA).

Read more about the directives here.

 

EXTREMELY CONCERNING IN RETROSPECT: The FBI and the Cybersecurity and Infrastructure Security Agency (CISA) disclosed Tuesday that multiple U.S. natural gas and oil pipeline companies were successfully breached by Chinese hackers for two years beginning in 2011. 

The agencies outlined the campaign, which ended in 2013, in a joint cybersecurity advisory released Tuesday. The agencies noted that 13 companies were successfully breached, three were described as “near misses” and eight others were subject to an “unknown depth of intrusion.”

CISA and the FBI attributed the incidents to Chinese state-sponsored hackers and noted in the advisory that it was a targeted attack likely designed to further develop China’s cyber capabilities.

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Read more about the intrusions here.

 

INCOMING INVESTIGATION: Senate Homeland Security and Governmental Affairs Committee Chairman Gary PetersGary PetersHillicon Valley: Biden to appoint Big Tech critic to DOJ antitrust role | House passes host of bills to strengthen cybersecurity in wake of attacks | Bezos returns from flight to space Peters launches bipartisan investigation into increasing ransomware attacks Biden ICE nominee pledges to uphold agreements with local law enforcement MORE (D-Mich.) on Tuesday announced the launch of a bipartisan investigation into the recent string of debilitating ransomware attacks against U.S. companies. 

The investigation will examine how cryptocurrencies are used in ransomware attacks to exploit victims. Ransoms are often demanded in the form of cryptocurrency, which is harder to trace. 

“The increased use of cryptocurrencies as the preferred method of payment in ransomware attacks shows that cybercriminals believe they can commit attacks without being held accountable,” Peters said in a statement Tuesday. “These attacks can have a devastating effect on Americans’ lives and livelihoods, and we must do everything we can to deter them – including understanding what additional regulations, actions and reforms are needed to adequately tackle complicated cybersecurity threats.”

Read more about the investigation here.

 

A WIN FOR THE FTC: The House passed a bill Tuesday that would revive the Federal Trade Commission’s (FTC) authority to return money to constituents harmed by companies found to engage in deceptive practices. 

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The Consumer Protection and Recovery Act passed in a 220-203 vote, with two Republicans joining Democrats in favor of passing the bill. 

The bill comes after the Supreme Court unanimously ruled earlier this year that the agency did not have authority under a provision known as Section 13(b) to obtain equitable monetary relief. 

Read more here. 

What we’re watching this week:

-The House Small Business Committee will hold a hearing Wednesday on strengthening the cybersecurity of small businesses.

-The Senate Environment and Public Works Committee will hold a hearing on Thursday to examine cybersecurity vulnerabilities impacting critical infrastructure. 

 

An op-ed to chew on: As talks on infrastructure continue, Congress must invest in the workers who will build it

Lighter click: Define ‘extended’

 

NOTABLE LINKS FROM AROUND THE WEB: 

Amazon Denied a Worker Pregnancy Accommodations. Then She Miscarried. (Vice News / Lauren Kaori Gurley)

 U.S. Military Bought Cameras In Violation Of America’s Own China Sanctions (The Intercept / Sam Biddle) 

Beijing’s costly plans for cybersecurity ‘self-sufficiency’ (Protocol / Dave Yin)

Small businesses are scrambling to hire enough workers to meet surging demand.

With consumers flocking back to their pre-pandemic routines quicker than some workers are willing and able to rejoin the workforce, businesses are boosting wages, offering bonuses and stretching the limits of their margins to lock in employees.

There were more than 9.2 million jobs open on the last business day of May, according to the Labor Department, but U.S. employment was still down by 6.8 million from its pre-pandemic level by the end of June. Millions more have yet to return to the labor force after losing their jobs during the pandemic, and it’s unclear how many will come back.

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A range of pandemic-related forces, including child or family care responsibilities, health concerns and the cushion of expanded unemployment aid, have limited the pool of workers able to fill a flood of jobs.

The squeeze sent wages higher by 3.6 percent year over year in June overall and by 7.2 percent in the leisure and hospitality industry, where a rush of activity has forced restaurants and bars to fight over scarce workers.

Devin Gong, owner of Copycat Co. and Astoria in Washington, D.C., said his restaurants have been “busier than ever” after scraping through a tough winter thanks in part to government aid. He said that while he was able to retain most of his staff, competition within the industry has prompted “shuffling around” among newly empowered workers.

“Right now, it’s like everybody’s hiring, so the workers really have the upper leg here,” he said.

“Everybody in the company is making great money, way more money than pre-pandemic,” he continued, adding that both of his restaurants have always shared profits among employees.

“But we’re still facing the same issues,” he noted.

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The leisure and hospitality industry has been a focal point of the hiring struggles facing small businesses. No industry has lost more jobs to COVID-19 or has added more jobs in the months since states scrapped nearly all pandemic-related capacity and service restrictions.

Anne Marisic, head of marketing at Maine Beer Co., said the brewery and taproom has flourished this summer thanks to a steady stream of vacationers and has been one of few in the area able to hire enough staff.

“We are still having good luck hiring people, but I think we were all sort of surprised by the volume of staff that we needed,” she said. “We had a hint that this was going to happen, but I still think it’s surprising people every day just how busy it’s been.”

But Marisic says Maine Beer Co. pays all employees at least $18 an hour, well above Maine’s minimum wage of $12.15 and almost three times the state’s tipped minimum wage of $7.25.

For businesses with tighter margins used to paying employees less, matching wages like those could prove difficult, particularly amid rising food costs. While the hospitality industry has also been hit hard by labor constraints, similar issues have hindered retailers and manufacturers.

The firms most desperate for employees are the ones most likely to pay the highest wages, said Adam Ozimek, chief economist at Upwork.

“If you have a restaurant and the bare minimum you can open with is 10 people, those 10 people are really really important,” he said. “They’re hiring a worker to get to a survival level of service, so they’re willing and able to pay more.”

For businesses simply looking to increase their capacity, Ozimek said hiring bonuses have exploded in popularity as a way of boosting compensation to navigate a short-term problem with a temporary solution.

“It’s an upfront cost that doesn’t lock you into a longer-term payment structure,” he said.

Google searches for “hiring bonus” have more than doubled since before the pandemic, and many employers are adding additional compensation for workers who meet a certain threshold of hours. Ozimek added that employers are also offering workers more flexibility with scheduling and hours, something Gong said he was also working on with his restaurants.

Even so, it remains to be seen how much longer the power will last for workers — and how soon hiring might ease for small businesses.

The Centers for Disease Control and Prevention on Friday recommended that all schools reopen for in-person education in the upcoming school year, which should free up parents still stuck at home taking care of children. Enhanced federal unemployment benefits also expire in September, but there is insufficient evidence from states who’ve pulled out of the program to know how much of an impact it will make.

“Workers have realized that they have leverage in the economy right now in the short-term. In part because of this rapid, rapid reopening process, they’re able to be choosy,” said Kenan Fikri, head of research at the Economic Innovation Group, a business think tank.

“I think what we’ll start to see over the next six months is whether that leverage is durable and long lasting, or whether it’s kind of fleeting,” he added.

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