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A group of Tesla investors yesterday sued Elon Musk, the company, and its board members, alleging that Tesla was harmed by Musk's diversion of resources to his xAI venture. The diversion of resources includes hiring AI employees away from Tesla, diverting microchips from Tesla to X (formerly Twitter) and xAI, and "xAI's use of Tesla's data to develop xAI's own software/hardware, all without compensation to Tesla," the lawsuit said.

The lawsuit in Delaware Court of Chancery was filed by three Tesla shareholders: the Cleveland Bakers and Teamsters Pension Fund, Daniel Hazen, and Michael Giampietro. It seeks financial damages for Tesla and the disgorging of Musk's equity stake in xAI to Tesla.

"Could the CEO of Coca-Cola loyally start a competing soft-drink company on the side, then divert scarce ingredients from Coca-Cola to the startup? Could the CEO of Goldman Sachs loyally start a competing financial advisory company on the side, then hire away key bankers from Goldman Sachs to the startup? Could the board of either company loyally permit such conduct without doing anything about it? Of course not," the lawsuit says.

Enlarge / Elon Musk. (credit: Getty Images | Bloomberg)

Tesla shareholders have re-approved CEO Elon Musk's $44.9 billion pay package, the company announced today. "Our stockholders have approved the ratification of the 100 percent performance-based stock option award to Elon Musk that was approved by stockholders in 2018," Brandon Ehrhart, Tesla's general counsel and corporate secretary, announced at Tesla's annual shareholder meeting.

Ehrhart also said that shareholders approved a corporate move from Delaware to Texas, and the re-election of board members James Murdoch and Kimbal Musk (Elon Musk's brother). While the official announcement was made at the shareholder meeting late in the day on Thursday, Musk revealed that the yes votes were winning in a social media post last night.

"Both Tesla shareholder resolutions are currently passing by wide margins!" Musk wrote, referring to the pay vote and the move from Delaware to Texas. His post included charts indicating that both shareholder resolutions had more than enough yes votes to surpass the "guaranteed win" threshold.

Enlarge / The standard Starlink satellite dish. (credit: Starlink)

You can now buy a Starlink satellite dish for $299 (plus shipping and tax) in 28 US states due to a discount for areas where SpaceX's broadband network has excess capacity.

Starlink had raised its upfront hardware cost from $499 to $599 in March 2022 but cut the standard price back down to $499 this week. In the 28 states where the network has what SpaceX deems excess capacity, a $200 discount is being applied to bring the price down to $299. It's unclear how long the deal will last, though we can assume the number of states eligible for $299 pricing will fall if a lot of people sign up.

"In the United States, new orders in certain regions are eligible for a one-time savings in areas where Starlink has abundant network availability," a support page posted yesterday said. "$200 will be removed from your Starlink kit price when ordering on Starlink.com and if activated after purchasing from a retailer, a $200 credit will be applied. The savings are only available for Residential Standard service in these designated regional savings areas."

Enlarge (credit: Getty Images | Kirill Kudryavtsev)

Elon Musk's X Corp. is reportedly demanding money from at least six Australians who were laid off, saying the company accidentally overpaid them. The Sydney Morning Herald reported today that "X is threatening to take some former Australian employees to court, demanding they return entitlements it claims were overpaid to them after it bungled the currency conversion from US to Australian dollars on the payments."

Emails sent this year by X's Asia Pacific human resources department to the laid-off employees said there was "a significant overpayment in error in January 2023." The alleged overpayments ranged from $1,500 to $70,000 for each employee.

So far, none of the former employees have repaid the money, The Sydney Morning Herald was told. One Australian dollar is currently worth $0.67 in US currency.

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When T-Mobile announced price hikes of up to $5 per line on older smartphone plans last month, many customers were shocked because of T-Mobile's years-old promise that their price would never rise as long as they stuck with the same plan.

"New rule: Only YOU should have the power to change what you pay," T-Mobile said in a January 2017 announcement of its "Un-contract" promise for T-Mobile One plans. "Now, T-Mobile One customers keep their price until THEY decide to change it. T-Mobile will never change the price you pay for your T-Mobile One plan."

Unfortunately, the promise wasn't as simple as T-Mobile claimed it to be in that press release. T-Mobile also published an FAQ that answered the question, "What happens if you do raise the price of my T-Mobile One service?" It explained that the only guarantee is T-Mobile will pay your final month's bill if the price goes up and you decide to cancel.

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Internet service providers are again urging the Federal Communications Commission to impose new fees on Big Tech firms and use the money to subsidize broadband network deployment and affordability programs. If approved, the request would force Big Tech firms to pay into the FCC's Universal Service Fund (USF), which in turn distributes money to broadband providers.

The request was made on June 6 by USTelecom, a lobby group for AT&T, Verizon, CenturyLink/Lumen, and smaller telcos. USTelecom has made similar arguments before, but its latest request to the FCC argues that the recent death of a broadband discount program should spur the FCC to start extracting money from Big Tech.

"Through focusing on the Big Tech companies who benefit most from broadband connectivity, the Commission will fairly allocate the burden of sustaining USF," USTelecom wrote in the FCC filing last week.

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Google has achieved its goal of avoiding a jury trial in one antitrust case after sending a $2.3 million check to the US Department of Justice. Google will face a bench trial, a trial conducted by a judge without a jury, after a ruling today that the preemptive check is big enough to cover any damages that might have been awarded by a jury.

"I am satisfied that the cashier's check satisfies any damages claim," US District Judge Leonie Brinkema said after a hearing in the Eastern District of Virginia on Friday, according to Bloomberg. "A fair reading of the expert reports does not support" a higher amount, Brinkema said.

The check was reportedly for $2,289,751. "Because the damages are no longer part of the case, Brinkema ruled a jury is no longer needed and she will oversee the trial, set to begin in September," according to Bloomberg.

Enlarge / Elon Musk speaks onstage at SXSW on March 11, 2018, in Austin, Texas. (credit: Getty Images | Diego Donamaria )

Tesla Board Chairperson Robyn Denholm urged shareholders to re-approve CEO Elon Musk's $46 billion pay package this week, saying the vote is "not about the money" while suggesting that Musk could leave Tesla or devote less time to the company if he isn't properly compensated.

"This is obviously not about the money. We all know Elon is one of the wealthiest people on the planet, and he would remain so even if Tesla were to renege on the commitment we made in 2018," Denholm wrote in a June 5 letter to shareholders.

Musk's pay plan was nullified by a Delaware Court of Chancery ruling in January 2024 after a lawsuit filed by a shareholder. The ruling said that Denholm had a "lackadaisical approach to her oversight obligations" and "derived the vast majority of her wealth from her compensation as a Tesla director." It also said most board members "were beholden to Musk or had compromising conflicts," and that the proxy information given to shareholders before the 2018 vote was "materially deficient."

Enlarge (credit: Getty Images | Yuichiro Chino)

The Federal Communications Commission wants to verify that Internet service providers are strengthening their networks against attacks that take advantage of vulnerabilities in Border Gateway Protocol (BGP).

The FCC today unanimously approved a Notice of Proposed Rulemaking that would require ISPs to prepare confidential reports "detail[ing] their progress and plans for implementing BGP security measures that utilize the Resource Public Key Infrastructure (RPKI), a critical component of BGP security."

"Today, we begin a rulemaking to help make our Internet routing more secure," FCC Chairwoman Jessica Rosenworcel said. "We propose that all providers of broadband Internet access service prepare and update confidential BGP security risk management plans. These plans would describe and attest to their efforts to follow existing best practices with respect to Route Origin Authorizations and Route Origin Validation using the Resource Public Key Infrastructure. In addition, we propose quarterly reporting for the largest providers to ensure we are making progress addressing this well-known vulnerability."

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The US Justice Department and Federal Trade Commission reportedly plan investigations into whether Nvidia, Microsoft, and OpenAI are snuffing out competition in artificial intelligence technology.

The agencies struck a deal on how to divide up the investigations, The New York Times reported yesterday. Under this deal, the Justice Department will take the lead role in investigating Nvidia's behavior while the FTC will take the lead in investigating Microsoft and OpenAI.

The agencies' agreement "allows them to proceed with antitrust investigations into the dominant roles that Microsoft, OpenAI, and Nvidia play in the artificial intelligence industry, in the strongest sign of how regulatory scrutiny into the powerful technology has escalated," the NYT wrote.

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T-Mobile is hoping that home Internet customers who suffer from frequent service outages will pay $30 a month for a "backup" 5G plan. T-Mobile's new "Home Internet Backup," announced today, is intended to be used only when a user's primary home Internet service goes down.

One big drawback is that T-Mobile clearly intends for customers to subscribe to the $30 monthly plan indefinitely, even though a user likely wouldn't need it during some months and might need it for just a day or two in other months. The pricing terms make it so that canceling and resubscribing as needed is not feasible.

T-Mobile said the plan provides 130GB of 5G data each month, "enough to keep a typical household connected with Wi-Fi for up to seven days a month when their primary internet service goes down." After 130GB, speeds will be reduced to "up to" 600kbps.

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Canada has ordered large online streaming services to pay 5 percent of their Canadian revenue to the government in a program expected to raise $200 million per year to support local news and other home-grown content. The Canadian Radio-television and Telecommunications Commission (CRTC) announced its decision yesterday after a public comment period.

"Based on the public record, the CRTC is requiring online streaming services to contribute 5 percent of their Canadian revenues to support the Canadian broadcasting system. These obligations will start in the 2024–2025 broadcast year and will provide an estimated $200 million per year in new funding," the regulator said.

The fees apply to both video and music streaming services. The CRTC imposed the rules despite opposition from Amazon, Apple, Disney, Google, Netflix, Paramount, and Spotify.

Enlarge (credit: Getty Images | Yuichiro Chino)

As expected, broadband industry lobby groups have sued the Federal Communications Commission in an attempt to nullify net neutrality rules that prohibit blocking, throttling, and paid prioritization.

Lobby groups representing cable, telecom, and mobile Internet service providers sued the FCC in several US appeals courts last week. Industry groups also filed a petition with the FCC on Friday asking for a stay of the rules, claiming the regulations shouldn't take effect while litigation is pending because the industry is likely to prevail in court.

The FCC is highly likely to reject the petition for a stay, but the groups can then ask appeals court judges to impose an injunction that would prevent enforcement. The industry lost a similar case during the Obama era, but is hoping to win this time because of the Supreme Court's evolving approach on whether federal agencies can decide "major questions" without explicit instructions from Congress.

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Minnesota this week eliminated two laws that made it harder for cities and towns to build their own broadband networks. The state-imposed restrictions were repealed in an omnibus commerce policy bill signed on Tuesday by Gov. Tim Walz, a Democrat.

Minnesota was previously one of about 20 states that imposed significant restrictions on municipal broadband. The number can differ depending on who's counting because of disagreements over what counts as a significant restriction. But the list has gotten smaller in recent years because states including Arkansas, Colorado, and Washington repealed laws that hindered municipal broadband.

The Minnesota bill enacted this week struck down a requirement that municipal telecommunications networks be approved in an election with 65 percent of the vote. The law is over a century old, the Institute for Local Self-Reliance's Community Broadband Network Initiative wrote yesterday.

Enlarge / President Joe Biden at a Rose Garden event at the White House on May 1, 2023, in Washington, DC. (credit: Getty Images | Alex Wong )

A Democratic consultant was indicted on charges of voter suppression and impersonation of a candidate after admitting that he commissioned a robocall that used artificial intelligence to imitate President Joe Biden's voice. The political consultant, Steven Kramer, is also facing a $6 million fine proposed by the Federal Communications Commission.

The fake Biden robocall urged Democrats not to vote and was placed to New Hampshire residents before the state's presidential primary in January. Kramer, who was working for a candidate running against Biden, acknowledged that he was responsible for the robocall in February.

Kramer, a 54-year-old from New Orleans, "has been charged with 13 felony counts of voter suppression... and 13 misdemeanor counts of impersonation of a candidate," New Hampshire Attorney General John Formella announced today. "The charges are spread across four counties based on the residence of thirteen New Hampshire residents who received the Biden robocalls."

Enlarge / Ticketmaster advertisements in the United States v. South Africa women's soccer match at Soldier Field on September 24, 2023 in Chicago, Illinois. (credit: Getty Images | Daniel Bartel/ISI Photos/USSF)

The US government today sued Live Nation and its Ticketmaster subsidiary in a complaint that seeks a breakup of the company that dominates the live music and events market.

The US Department of Justice is seeking "structural relief," including a breakup, "to stop the anticompetitive conduct arising from Live Nation's monopoly power." The DOJ complaint asked a federal court to "order the divestiture of, at minimum, Ticketmaster, along with any additional relief as needed to cure any anticompetitive harm."

The District of Columbia and 29 states joined the DOJ in the lawsuit filed in US District Court for the Southern District of New York. "One monopolist serves as the gatekeeper for the delivery of nearly all live music in America today: Live Nation, including its wholly owned subsidiary Ticketmaster," the complaint said.

Enlarge / A T-Mobile logo at a store in New York on April 30, 2018. (credit: Getty Images | Bloomberg)

T-Mobile today is notifying customers on some older smartphone plans that their monthly prices will soon be increased by either $2 or $5.

T-Mobile confirmed the price increases when contacted by Ars today. "The increase is $2 or $5 per line. We won't be sharing the details on which plans but the portion of customers who are included are being notified today," a T-Mobile spokesperson told us.

The price increases, which reportedly will take effect during the June billing cycle, were previously confirmed by The Mobile Report. The news article said that affected plans include One, Magenta, Magenta Max, Magenta 55+, Magenta First Responder, and Simple Choice. While smartphone plans will increase either $2 or $5, it appears that affected plans for tablets and hotspots will get a $2 price increase.