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2018年4月19日 星期四

Overnight Energy: Senate confirms Bridenstine as NASA chief | Watchdog probes Pruitt’s use of security detail | Emails shine light on EPA science policy changes

 
 
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BRIDENSTINE EKES OUT SENATE VOTE: Republican Rep. Jim Bridenstine (Okla.) just barely made it through his Senate confirmation vote to be the National Aeronautics and Space Administration's (NASA) administrator, passing 50 to 49, with all Republicans in favor and all Democrats opposed.

The vote came after a dramatic nearly hourlong vote period on the Senate floor. Sen. Jeff Flake (R-Ariz.) cast the final "yes" vote after holding out for about 15 minutes longer than his fellow Senators.

Flake was seen speaking to Senate leaders and their staff, including Majority Whip John Cornyn (R-Texas). Flake declined to say after the vote why he held out so long.

"When you have some leverage, when it's a close vote, every senator does that from time to time," he told reporters. "And I have a couple of issues I've been raising with the administration and it's a good time to do it."

Senate leaders also held the vote open to let Sen. Tammy Duckworth (D-Ill.), who delivered a baby days ago, come to the floor with her daughter and cast her vote against Bridenstine. More on that below.

Bridenstine, who has represented Tulsa, Okla., since 2013, is a former Navy pilot, and previously led the Tulsa Air and Space Museum & Planetarium.

He'll be responsible for a 17,000-person agency whose far-reaching duties include space exploration, overseeing commercial space activities, studying aeronautics and researching the Earth's atmosphere, among other tasks.

Sen. Marco Rubio (R-Fla.) voted to confirm Bridenstine despite previous objections to having a "politician" run NASA, which operates its main flight facility in Florida.

Rubio said earlier Thursday that the impending retirement of acting NASA Director Robert Lightfoot meant the organization needs a leader.

"I was not enthused about the nomination," he said on the Senate floor. "Nothing personal about Mr. Bridenstine. NASA is an organization that needs to be led by a space professional."

Lightfoot's departure, Rubio said, "leaves us with the prospect of this incredible agency with a vacancy in its top job."

While Republicans hailed Bridenstine as a top-notch candidate to lead NASA, Democrats argued that he was unqualified for the high-profile scientific spot and too divisive of a politician. They also argued that his views, such as doubting climate change science and opposition to LGBT rights, ought to disqualify him.

 

What it means: Democrats had been trying for months to enlist Republicans to vote against Bridenstine.

Their arguments, led by Sen. Bill Nelson (D-Fla.), fell mainly into two camps: That a divisive politician shouldn't run the agency and that Bridenstine lacked the scientific credentials necessary.

The Democrats succeeded in keeping their caucus together, with no one -- not even those running for reelection in red states -- crossing the aisle. But the GOP was also united, in support of the nominee.

 

What's next: Bridenstine still needs to be sworn in at NASA, and to resign his House seat.

He said in a statement via NASA Thursday, "I look forward to working with the outstanding team at NASA to achieve the president's vision for American leadership in space."

Read more.

 

Duckworth shows up to vote, with baby in hand: Duckworth cast the 49th vote against Bridenstine, taking advantage of a new Senate rule to bring her infant daughter into the chamber.

Up until Wednesday, the Senate didn't allow any children onto the floor. Congress's upper chamber is notorious for strict rules from decorum to attire.

Senators voted unanimously on Wednesday to allow children under one year of age onto the floor. Duckworth pushed the resolution along with other Senate women, due to Duckworth's concerns about being away from her daughter and not nursing her.

Duckworth, an Iraq War veteran who lost both of her legs when her helicopter was hit by a grenade, was in her wheelchair for the vote, carrying her daughter, Maile, in a sling.

Duckworth and her daughter came into the Senate chamber greeted by applause from senators. They quickly attracted a bipartisan throng of senators to admire Maile, including Sens. Claire McCaskill (D-Mo.), Amy Klobuchar (D-Minn.), Charles Schumer (D-N.Y.), Jeff Flake (R-Ariz.), Mitch McConnell (R-Ky.), Patty Murray (D-Wash.) and Jeff Merkley (D-Ore.).

McCaskill joked that Maile is "wearing a blazer," abiding by the Senate's strict dress rules. Duckworth joked on Twitter earlier Thursday that she had prepared an outfit for Maile, complete with a blazer.  

Read more.

 

ANOTHER PRUITT PROBE: The Environmental Protection Agency's (EPA) Office of Inspector General (OIG) announced Thursday that it had opened another investigation into Administrator Scott Pruitt.

Inspector General Arthur Elkins accepted Sen. Sheldon Whitehouse's (D-R.I.) request to investigate Pruitt's use of a taxpayer-funded security detail during travel to Disneyland, the Rose Bowl and other personal trips.

"While I consider matters of personal security to be extremely serious, personal security should never be used as a pretext to obtain special treatment," Whitehouse wrote in a letter to Elkins last month.

In Whitehouse's original letter, he alleged that Pruitt took a security detail on family vacations to Disneyland and on trips to the Rose Bowl and to his home in Tulsa, Okla., for college basketball games. The allegations were based on schedules and documents the senator said he received from an unnamed source.

The EPA inspector general is already investigating Pruitt's travel habits, and the White House budget office is looking into the agency's decision to spend $43,000 to install a soundproof phone booth for Pruitt.

Read more.

 

EPA spent $45k for advance trip before canceled Australia journey: Two aides and three security agents working for Pruitt took a $45,000 trip to Australia for the purpose of setting up meetings for Pruitt that never actually occurred, Reuters reports.

The five-person "advance" team was in Australia and New Zealand in order to set up a meeting with Australia's Parliament, where Pruitt was expected to meet with Australian officials to discuss environmental policy.

Pruitt's trip was canceled, however, due to the landfall of Hurricane Harvey last year, and a new meeting has not been scheduled. An EPA spokesman told Reuters that rescheduling the trip had been stymied by Australia's parliamentary schedule.

"This is not news," Jahan Wilcox said, adding that the advance team was "adhering to the federal government's travel policy."

"We have been unable to find a time to reschedule this meeting as it must be done when they are in session," he added, referring to Australia's government.

The officials were away for just a few days and traveling business class in this case was not a violation of federal rules, as government policy allows officials to fly business class for trips 14 hours or longer.

Read more.

 

EMAILS SHOW EPA'S EFFORTS TOWARD 'SECRET SCIENCE' POLICY: EPA political staffers have been working to internally replicate through agency action a bill that would restrict the kind of science that the EPA can use when writing regulations, internal emails show.

Pruitt met with Rep. Lamar Smith (R-Texas), chairman of the House Science Committee, on Jan. 9, according to a copy of Pruitt's public schedule.

Smith for years has been pushing to restrict the type of scientific findings accepted by the EPA. His repeatedly sponsored bill, now called the Honest and Open New EPA Science Treatment -- or HONEST -- Act, would mandate all scientific data and findings be made publicly available before they are used to justify agency regulations.

Newly released emails show that Pruitt and his staff are working to essentially replicate Smith's proposal, and spent a majority of February working to finalize the policy.

The week after Smith's meeting with Pruitt, a high-level Smith staffer reached out to one of Pruitt's aides to set up a meeting to "discuss further transparent science-based regulations at EPA."

The EPA staffer forwarded that to his colleagues, telling them it was part of a "pitch that EPA internally implement the HONEST Act."

Pruitt told the Daily Caller News Foundation last month that he would implement a new policy to ensure that the data the EPA uses is "transparent." But the agency has refused to provide more details.

Read more.

 

TRUMP OFFICIALS MOVE TOWARD ANWR DRILLING: The Trump administration is taking a big step toward allowing oil and natural gas drilling in Alaska's Arctic National Wildlife Refuge (ANWR).

The Interior Department's Bureau of Land Management (BLM) released a notice Thursday that it is starting the "scoping" process for an environmental review. The review will examine the impact of leasing drilling rights to companies in ANWR's 1.6 million-acre coastal plain.

The BLM will take public comments for 60 days and hold four meetings in Alaska to inform the public on how it will conduct the environmental review, it said in the notice, which is set to be published Friday in the Federal Register.

The notice comes just four months after Congress voted to allow drilling in the federally owned ANWR for the first time.

 

Greens ask 'why the rush?': Environmentalists see the scoping notice as evidence that the administration is rushing through the review process to get drills in the ground.

"The Trump administration's reckless dash to expedite drilling and destroy the Arctic National Wildlife Refuge will only hasten a trip to the courthouse. We will not stand by and watch them desecrate this fragile landscape," said Jamie Rappaport Clark, president of Defenders of Wildlife.

Read more.

 

EPA TO OPEN REVIEW INTO PRUITT'S EMAILS: EPA's deputy Chief Information Officer Steven Fine confirmed that Pruitt has been utilizing three separate EPA emails, and that the agency will conduct a "full review" of the searches conducted under FOIA.

"In response to your concern, my office is conducting a full review of the searches conducted regarding FOIA requests seeking Administrator Pruitt's records," Fine wrote.

In a letter sent Wednesday in response to a prior request from Sen. John Barrasso (R-Wyo.), the EPA official said that Pruitt had a traditional email with his first and last name and additionally used a "day to day" email with the address sooners7@epa.gov. One other email, esp7@epa.gov, was set up for Pruitt but never used. Without offering a reason, Fine told Barrasso that Pruitt's day to day address "must now be changed."

Barrasso, chairman of the Senate Committee on Environment and Public Works, wrote Pruitt last Friday following reports that Pruitt used multiple email addresses to conduct EPA business. Barrasso's letter expressed concerns that all emails were not searchable under the Freedom of Information Act (FOIA) and asked for confirmation that they were.

"During your confirmation hearing I specifically asked you to 'refrain from taking any ... action that makes it difficult or impossible for the public to access your written communications under the Freedom of Information Act,'" Barrasso wrote the administrator.

He added: "You agreed to my request. Can you affirm that EPA does in fact search all your email accounts when responding to FOIA requests?"

In his response to Barrasso, Fine noted that previous EPA administrators have also used multiple email addresses to conduct business, saying the practice stems back to Carol Browner's tenure from 1993 to 2001.

In a statement Friday, Barrasso said that he looked forward to EPA's full review of his questions.

"EPA has reiterated Administrator Pruitt's commitment to me that all of his email accounts are searched for Freedom of Information Act requests," Barrasso said. "I look forward to receiving the findings of the agency's full review that's being conducted in response to my letter."

 

OUTSIDE THE BELTWAY:

China's environment ministry says the country is reaching a "stalemate" in its efforts to cut smog pollution, Reuters reports.

One of the Canadian First Nations that Trans Mountain pipeline developer Kinder Morgan said has approved the project through its land says it hasn't decided on the matter, CBC News reports.

Puerto Rico's islandwide blackout, which is now over, was caused by a contractor's bulldozer accidentally hitting a power line, NBC News reports.

 

IN CASE YOU MISSED IT:

Check out Thursday's stories ...

-Pruitt spent $45K flying aides to Australia to prep for later-canceled visit: report

-Duckworth brings her baby to Senate vote, drawing a crowd

-Senate confirms Trump's pick to lead NASA

-EPA inspector general to probe Pruitt's use of taxpayer-funded security detail on trips to Disneyland, Rose Bowl game

-Dems urge Interior to reverse new policy that could threaten birds

-Trump eyes Cold War statute to keep coal burning: report

-UK goes 55 hours without using coal

-Trump administration takes major step toward Alaska refuge drilling

-UK to become first country to ban plastic straws

 
 

Please send tips and comments to Timothy Cama, tcama@thehill.com; and Devin Henry, dhenry@thehill.com. Follow us on Twitter: @Timothy_Cama@dhenry@thehill

 
 
 
 
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Overnight Tech: AT&T chief takes the stand to defend merger | Facebook keeps most users out of EU data law's reach | HUD reopens probe into Facebook housing ads | Venture capital firms go to bat for cryptocurrencies

 
 
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AT&T CEO TAKES THE STAND: AT&T CEO Randall Stephenson testified Thursday in the landmark trial over his company's $85 billion merger with Time Warner.

He echoed his lawyers' arguments that the deal is needed to keep up with a changing media landscape driven by new competitors from Silicon Valley.

"We would like to compete for their advertising dollars," Stephenson said of Facebook and Google.

But prosecutor Craig Conrath pointed out differences in AT&T's model and those of tech giants. For one, he noted that streaming platforms like Netflix and Amazon still rely on internet service providers like AT&T to reach their customers.

The government has argued that combining the reach of the largest pay-TV distributor with Time Warner's popular entertainment offerings hurts competitors and consumers.

Stephenson dismissed the prosecution's theory that the combined company would try to use Time Warner programming as leverage to hurt competitors.

"The more people that watch your content, the more your content is worth," Stephenson said.

 

Takeaway: Stephenson largely echoed the arguments made by Jeff Bewkes, his counterpart at Time Warner, in court on Wednesday. The two executives insist the merger is necessary to keep them competitive. CNN Media reported that Stephenson often seemed to speak "directly" to the judge in his testimony. The trial could come down to how well they made their argument for the merger.

 

--Makan Delrahim, the Justice Department's antitrust chief, gave a speech on Thursday in which he suggested that tech platforms should be scrutinized for their use of consumer data.

"As public attention has been drawn to the practice of collecting data, there is a heightened concern about the value of privacy and the value of consumer data," Delrahim said at University of Chicago conference. "This concern is no longer limited to privacy advocates and policymakers who have sounded the alarm for years, only for their concerns to fall on deaf ears."

 

Welcome to Overnight Tech! Please send your tips, comments and analysis on who would win a Mike D'Antoni vs. Steve Kerr boxing match to Ali Breland (abreland@thehill.com) and Harper Neidig (hneidig@thehill.com) and follow us on Twitter: @alibreland and @hneidig. We're also on Signal and WhatsApp. Email or DM us for our numbers.

 

FACEBOOK WILL LEAVE MOST USERS OUT OF NEW PRIVACY LAW: Outside of the U.S. and Canada, Facebook users are mostly governed by the terms of service that they agreed to with the company's Ireland headquarters. But the social media giant is making changes so that only European users fall under that umbrella, according to a new Reuters report.

The move is significant because it comes ahead of a sweeping new EU privacy law, the General Data Protection Regulation (GDPR), that will impose strict new consumer protections and subject companies to massive fines for violations.

 

ICYMIhere's Harper's story on how tech companies are preparing for the GDPR.

 

--The company is already facing heat in Europe. A top Facebook executive will reportedly meet with German regulators on Friday over concerns about its data practices.

"Facebook needs to show more openness and transparency when dealing with user data," Nadine Schoen, deputy leader of Chancellor Angela Merkel's conservative bloc in the lower house, told Reuters.

 

HUD REOPENS PROBE INTO FACEBOOK HOUSING ADS: Facebook is facing problems on another front as Housing Secretary Ben Carson told Congress on Wednesday that his department is re-opening an investigation into whether the social media giant violated fair housing laws with its advertising practices.

"We were very concerned when we began to uncover the facts," Carson told a Senate panel after Sen. Brian Schatz (D-Hawaii) pressed him on the issue.

A HUD spokesperson told The Hill that the agency has found new info about Facebook's practices "that warrant a deeper level of scrutiny."

According to The New York Times, HUD first closed its investigation in November.

 

This has been going for a long time: Facebook said it took action not long after ProPublica first discovered that advertisers could exclude black, Hispanic and Asian-Americans from seeing their ads. Facebook claimed they stopped allowing advertisers to do so, but ProPublica later found that Facebook had not deactivated this function.

 

Capitol Hill connection: This matter has been a key concern for the Congressional Black Caucus which has long said that Facebook needs to step up on the issue.

 

From Facebook: A company spokesperson insisted Facebook is trying to fix the issue. It's introduced new detection tools and asks more information from advertisers to prevent discrimination.

 

MORE FACEBOOK TROUBLE.

RESEARCHERS SAY THOUSANDS OF FACEBOOK USERS AFFECTED BY MALWARE: Cybersecurity researchers believe that hackers have compromised tens of thousands of Facebook accounts by creating a fake painting app on the platform.

According to data security firm Radware, hackers are using the malware to harvest user credentials, payment methods and other information stored on Facebook accounts across the world.

"We are investigating these malware findings and we are taking steps to help protect and notify those who are impacted," Facebook spokesman Pete Voss told The Hill.

 

VENTURE CAPITAL GOES TO BAT FOR CRYPTO: Top venture capital firms reportedly asked the Securities and Exchange Commission (SEC) to exempt cryptocurrency-based tokens from their regulations.

Andreessen Horowitz and Union Square Ventures met with SEC officials on March 28, reports The Wall Street Journal.

They argued that government regulation could stifle innovation in cryptocurrency and blockchain.

 

Takeaway: SEC officials are reportedly skeptical about granting the exemptions. But it remains to be seen how far the agency goes in cracking down on crypto. Chairman Jay Clayton has repeatedly said regulators will go after scams and bad actors using cryptocurrencies.

 

LONG READ OF THE DAY: Some landlords are offering housing in exchange for sex from young men. And in some cases it's being facilitated through Facebook, a BuzzFeed News investigation found. Patrick Strudwick details the often predatory and harrowing situations for the young men involved.

 

ON TAP:

The American Bar Association will continue its intellectual property law conference at 6:30 a.m.

 

IN CASE YOU MISSED IT:

Financial Times: An interview with Ethereum creator Vitalik Buterin

Bloomberg Businessweek: A deep dive in the secretive Peter Thiel-founded data analysis company, Palantir

New York Magazine: "I Fundamentally Believe That My Time at Reddit Made the World a Worse Place"

WSJ: Why tech titans are betting on India, in 14 charts

The Baffler: An aggressive take on how tech companies merge with the nation-state

 
 
 
 
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Overnight Finance: IMF chief warns against US-China trade war | Trump, Abe can't strike deal on tariff exemptions | Republicans push Trump to rescind Gateway funds

 
 
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Happy Thursday and welcome back to Overnight Finance, where we're fawning over some precedent-shattering cuteness in the Senate. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

 

THE BIG DEAL: The managing director of the International Monetary Fund (IMF) warned Thursday that tensions sparked by a U.S.-China trade war could damage the driving forces behind global economic growth.

IMF chief Christine Lagarde said that billions of dollars in planned U.S. and Chinese tariffs would have a “not very substantial” direct impact on the global economy, but they could do serious damage in the long run by dampening investor confidence.

"When investors do not know under what terms they will be trading, when they don’t know how to organize their supply chain, they will be reluctant on investing,” Lagarde said at the IMF spring meeting in Washington, D.C.

“Growth is being driven by more investment than the previous years, and more trade. So why damage those two engines that are effectively working for growth?”

The IMF has projected the global economy to grow 3.9 percent of gross domestic product in 2018, a 0.2-point increase from its October prediction. But Lagarde said the IMF is "seeing more clouds on the horizon" and urged nations to steer away from protectionism. I’ll tell you why here.

 

Japan tariff exemption falls through: Hours after Lagarde’s remarks, Trump and Japanese Prime Minister Shinzo Abe announced they had failed to reach a deal to exempt Japan from the steel and aluminum tariffs, according the Associated Press.

Trump and Abe said that they instead began talks to secure a “free, fair and reciprocal” trade agreement.  

 

LEADING THE DAY

Quarles returns to Congress: Federal Reserve Vice Chairman of Supervision Randal Quarles appeared before the Senate Banking Committee on Thursday, two days after he testified before the House Financial Services Committee. Here are a few highlights from his second appearance before a congressional panel since his confirmation.

  • Quarles on the bipartisan Senate bill to roll back Dodd-Frank: “Both I and the Federal Reserve as an institution are very supportive of efforts to tailor regulation particularly for community banks as exemplified in [the bill] and I do think the measures that are in that bill would still leave the Federal Reserve with full ability to ensure the safety and soundness of the financial system.”
  • On whether foreign banks would benefit from the Senate bill: “The Senate bill doesn’t have a practical effect for any foreign bank operating within the United States.” “We don’t have a secret plan in my satchel here for we’re going to do when this bill passes.”
  • On whether the Fed should step in when banks decide not to service gunmakers, per a question from Sen. John Kennedy (R-La.), Quarles said that it’s not appropriate for the Fed to tell banks what lines of business to conduct, but they’d have to step in if a law were being violated.

 

'She wasn't left twisting in the wind.' Treasury Secretary Steven Mnuchin on Thursday defended the Trump administration's backpedaling after U.S. Ambassador to the United Nations Nikki Haley incorrectly announced Russia would be subject to new sanctions for its role in a recent chemical attack in Syria.

Mnuchin told Fox Business Network that he and Haley were part of discussions last weekend to determine the administration’s strategy in Syria. He added that the White House hadn't left her "twisting in the wind" over the remarks, despite one official saying she had been "confused" before later apologizing over the characterization.

“I’m not going to go through the specifics, but we refined the strategy after Nikki made that announcement,” Mnuchin said. “Between Saturday and Sunday and Monday, we refined the strategy, and we will continue to refine the strategy." Here’s more from The Hill’s Brett Samuels. 

GOP pushes Mulvaney, Trump to rescind Gateway funds: A group of House Republicans wants White House budget chief Mick Mulvaney to strip funding in last month's omnibus spending package that could go toward a multi-billion dollar rail project in the New York metro region.

In a Thursday letter, 27 GOP members of the House ask the Office of Management and Budget Director to press President Trump to withhold the funds for the Gateway Program, a series of projects valued at $30 billion that includes restoring the Hudson River’s North River Tunnel. 

“[W]e urge you to advise the president to include in his message rescissions of budget authority from the appropriations accounts in the Consolidated Appropriations Act (‘the Act’) that could provide funding for the Gateway Program," the lawmakers wrote. The Hill’s Mallory Shelbourne tells us why.

 

NY comptroller pushes Wells Fargo to release details on pay incentives: The New York State Comptroller in a letter urged Wells Fargo shareholders to push the bank to reveal the details of incentive-based payment policies amid a slew of sales scandals.

Thomas DiNapoli said Wells Fargo should explain how it offers rewards to employees for reaching certain sales quotas.

DiNapoli, a Democrat, is the trustee of the New York State public retirement fund, which holds a $722 million stake in Wells Fargo. The comptroller asked fellow shareholders in a Tuesday letter to support a measure at the bank’s April 24 annual meeting that would force Wells Fargo to issue a report on its incentive-based compensation system.

“Incentive pay practices have been identified as contributing to the multiple crises at Wells Fargo,” DiNapoli said. “Investors need to know whether the company has taken steps to identify employees’ incentive-based compensation that could spur conduct that puts the bank, its customers and investors at risk.”

 

Just to recap: Wells Fargo has been under investigation by federal and state agencies after it opened millions of accounts for customers without authorization and sold thousands of other customers unnecessary insurance and interest rate-locking products.

The bank revealed last week that it's preparing to pay a fine of $1 billion to the Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of the Currency (OCC). The Wall Street Journal reported today that Wells could pay that fine as soon as tomorrow.

 

MARKET CHECK: Stocks dipped into red Thursday. The Dow Jones Industrial Average fell 0.34 percent, while the Nasdaq and S&P 500 dropped 0.78 percent and 0.57 percent each.

 

GOOD TO KNOW

  • The Department of Housing and Urban Development (HUD) has reopened its investigation into whether Facebook violated fair housing laws, HUD Secretary Ben Carson said Wednesday.
  • The real-estate company run by Jared Kushner’s family in mid-March received a federal grand-jury subpoena for information related to paperwork the company filed regarding rent-regulated tenants, according to The Wall Street Journal.
  • Only 17 women won sexual harassment claims before the Financial Industry Regulatory Authority (FINRA), Wall Street’s self-governing watchdog, in 30 years, according to the Investigative Fund and The Intercept.
  • A partner at Ernst & Young was sexually assaulted and harassed by multiple colleagues at the company, which allegedly ignored the woman’s complaints and then retaliated against her, according to a complaint she filed on Wednesday against the firm, according to The Daily Beast.
  • New results from a global development experiment in Kenya have sparked a heated debate over whether lump-sum cash transfers have any long-term benefits for those who get them, or even do harm to neighbors who don’t.

 

ODDS AND ENDS

  • Nestle can’t get a break. A top EU legal expert Thursday recommended that the design of Kit Kat bars is not distinctive enough to warrant special trademark protection.
 
 

Write us with tips, suggestions and news: slane@thehill.comvneedham@thehill.comnjagoda@thehill.com, and nelis@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill@NJagoda, and @NivElis.

 
 
 
 
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