Business
An Algorithm Told Police She Was Safe. Then Her Husband Killed Her.
In a small apartment outside Madrid on Jan. 11, 2022, an argument over household chores turned violent when Lobna Hemid’s husband smashed a wooden shoe rack and used one of the broken pieces to beat her. Her screams were heard by neighbors. Their four children, ages 6 to 12, were also home.
Ms. Hemid’s husband of more than a decade, Bouthaer el Banaisati, regularly punched and kicked her, she later told the police. He also called her a “whore,” “disgusting” and “worthless,” according to the police report.
Before Ms. Hemid left the station that night, the police had to determine if she was in danger of being attacked again and needed support. A police officer clicked through 35 yes or no questions — Was a weapon used? Were there economic problems? Has the aggressor shown controlling behaviors? — to feed into an algorithm called VioGén that would help generate an answer.
VioGén produced a score:
low risk Lobna Hemid
2022 Madrid
The police accepted the software’s judgment and Ms. Hemid went home with no further protection. Mr. el Banaisati, who was imprisoned that night, was released the next day. Seven weeks later, he fatally stabbed Ms. Hemid several times in the chest and abdomen before killing himself. She was 32 years old.
A photo of Lobna Hemid on the phone of a friend. She was killed by her husband in 2022.
Ana Maria Arevalo Gosen for The New York Times
Spain has become dependent on an algorithm to combat gender violence, with the software so woven into law enforcement that it is hard to know where its recommendations end and human decision-making begins. At its best, the system has helped police protect vulnerable women and, overall, has reduced the number of repeat attacks in domestic violence cases. But the reliance on VioGén has also resulted in victims, whose risk levels are miscalculated, getting attacked again — sometimes leading to fatal consequences.
Spain now has 92,000 active cases of gender violence victims who were evaluated by VioGén, with most of them — 83 percent — classified as facing little risk of being hurt by their abuser again. Yet roughly 8 percent of women who the algorithm found to be at negligible risk and 14 percent at low risk have reported being harmed again, according to Spain’s Interior Ministry, which oversees the system.
At least 247 women have also been killed by their current or former partner since 2007 after being assessed by VioGén, according to government figures. While that is a tiny fraction of gender violence cases, it points to the algorithm’s flaws. The New York Times found that in a judicial review of 98 of those homicides, 55 of the slain women were scored by VioGén as negligible or low risk for repeat abuse.
How the Risk Levels of 98 Women Were Classified
Extreme
High
Medium
Low
Negligible
Source: Spanish General Council of the Judiciary Note: Data from 2010 to 2022. Data from 2016 to 2018 is unavailable. By Alice Fang
Spanish police are trained to overrule VioGén’s recommendations depending on the evidence, but accept the risk scores about 95 percent of the time, officials said. Judges can also use the results when considering requests for restraining orders and other protective measures.
“Women are falling through the cracks,” said Susana Pavlou, director of the Mediterranean Institute of Gender Studies, who coauthored a European Union report about VioGén and other police efforts to fight violence against women. The algorithm “kind of absolves the police of any responsibility of assessing the situation and what the victim may need.”
Spain exemplifies how governments are turning to algorithms to make societal decisions, a global trend that is expected to grow with the rise of artificial intelligence. In the United States, algorithms help determine prison sentences, set police patrols and identify children at risk of abuse. In the Netherlands and Britain, authorities have experimented with algorithms to predict who may become criminals and to identify people who may be committing welfare fraud.
Few of the programs have such life or death consequences as VioGén. But victims interviewed by The Times rarely knew about the role the algorithm played in their cases. The government also has not released comprehensive data about the system’s effectiveness and has refused to make the algorithm available for outside audit.
VioGén was created to be an unbiased tool to aid police with limited resources identify and protect women most at risk of being assaulted again. The technology was meant to create efficiencies by helping police prioritize the most urgent cases, while focusing less on those calculated by the algorithm as lower risk. Victims classified as higher risk get more protection, including regular patrols by their home, access to a shelter and police monitoring of their abuser’s movements. Those with lower scores get less support.
In a statement, the Interior Ministry defended VioGén and said the government was the “first to carry out self-criticism” when mistakes occur. It said homicide was so rare that it was difficult to accurately predict, but added it was an “incontestable fact” that VioGén has helped reduce violence against women.
Since 2007, about 0.03 percent of Spain’s 814,000 reported victims of gender violence have been killed after being assessed by VioGén, the ministry said. During that time, repeat attacks have fallen to roughly 15 percent of all gender violence cases from 40 percent, according to government figures.
“If it weren’t for this, we would have more homicides and gender-based violence,” said Juan José López Ossorio, a psychologist who helped create VioGén and works for the Interior Ministry.
Juan José López Ossorio, a government official who helped create the VioGén system. Ana Maria Arevalo Gosen for The New York Times
Yet victims and their families are grappling with the consequences when VioGén gets it wrong.
“Technology is fine, but sometimes it’s not and then it’s fatal,” said Jesús Melguizo, Ms. Hemid’s brother-in-law, who is a guardian for two of her children. “The computer has no heart.”
‘Effective but not perfect’
VioGén started with a question: Can police predict an assault before it happens?
After Spain passed a law in 2004 to address violence against women, the government assembled experts in statistics, psychology and other fields to find an answer. Their goal was to create a statistical model to identify women most at risk of abuse and to outline a standardized response to protect them.
Some initial designs and research strategies for what became VioGén, including a decision tree and calibration techniques for predicting intimate partner homicides.
Ana Maria Arevalo Gosen for The New York Times
“It would be a new guide for risk assessment in gender violence,” said Antonio Pueyo, a psychology professor at the University of Barcelona who later joined the effort.
The team took a similar approach to how insurance companies and banks predict the likelihood of future events, such as house fires or currency swings. They studied national crime statistics, police records and the work of researchers in Britain and Canada to find indicators that appeared to correlate with gender violence. Substance abuse, job loss and economic uncertainty were high on the list.
Then they came up with a questionnaire for victims so their answers could be compared with historical data. Police would fill in the answers after interviewing a victim, reviewing documentary evidence, speaking with witnesses and studying other information from government agencies. Answers to certain questions carried more weight than others, like if an abuser displayed suicidal tendencies or showed signs of jealousy.
These are some of the questions answered by women
6. In the last six months, has there been an escalation of aggression or threats?
YesNoN/A
26. Has the aggressor demonstrated addictive behaviors or substance abuse?
YesNoN/A
34. In the last six months, has the victim expressed to the aggressor her intention to sever their relationship?
YesNoN/A
The system produced a score for each victim: negligible risk, low risk, medium risk, high risk or extreme risk. A higher score would result in police patrols and the tracking of an aggressor’s movements. In extreme cases, police would assign 24-hour surveillance. Those with lower scores would receive fewer resources, mainly follow-up calls.
Predictive algorithms to address domestic violence have been used in parts of Britain, Canada, Germany and the United States, but not on such a national scale. In Spain, the Interior Ministry introduced VioGén everywhere but in the Catalonia region and Basque Country.
Law enforcement initially greeted the algorithm with skepticism, police and government officials told The Times, but it soon became a part of everyday police business.
Before VioGén, investigations were “based on the experience of the policeman,” said Mr. Pueyo, who remains affiliated with the program. “Now this is organized and guided by VioGén.”
VioGén is a source of impartial information, he said. If a woman attacked late at night was seen by a young police officer with little experience, VioGén could help detect the risk of future violence.
“It’s more efficient,” Mr. Pueyo said.
Over the years, VioGén has been refined and updated, including with metrics that are believed to better predict homicide. Police have also been required to conduct a follow-up risk assessment within 90 days of an attack.
But Spain’s faith in the system has surprised some experts. Juanjo Medina, a senior researcher at the University of Seville who has studied VioGén, said the system’s effectiveness remains unclear.
“We’re not good at forecasting the weather, let alone human behavior,” he said.
Francisco Javier Curto, a commander for the military police in Seville, said VioGén helps his teams prioritize, but requires close oversight. About 20 new cases of gender violence arrive every day, each requiring investigation. Providing police protection for every victim would be impossible given staff sizes and budgets.
“The system is effective but not perfect,” he said, adding that VioGén is “the best system that exists in the world right now.”
Francisco Javier Curto, a commander for the military police in Seville who oversees gender violence incidents in the province. VioGén is “the best system that exists in the world right now,” he said.
Ana Maria Arevalo Gosen for The New York Times
José Iniesta, a civil guard in Alicante, a southeastern port city, said not enough of the police are trained to keep up with growing case loads. A leader in the United Association of Civil Guards, a union representing officers in rural areas, he said that outside of big cities, the police often must choose between addressing violence against women or other crimes.
Sindicato Unificado de Policía, a union that represents national police officers, said even the most effective technology cannot make up for a lack of trained experts. In some places, a police officer is assigned to work with more than 100 victims.
“Agents in many provinces are overwhelmed,” the union said in a statement.
When attacks happen again
The women who have been killed after being assessed by VioGén can be found across Spain.
One was Stefany González Escarraman, a 26-year-old living near Seville. In 2016, she went to the police after her husband punched her in the face and choked her. He threw objects at her, including a kitchen ladle that hit their 3-year-old child. After police interviewed Ms. Escarraman for about five hours, VioGén determined she had a negligible risk of being abused again.
negligible risk Stefany González Escarraman
2016 Seville
The next day, Ms. Escarraman, who had a swollen black eye, went to court for a restraining order against her husband. Judges can serve as a check on the VioGén system, with the ability to intervene in cases and provide protective measures. In Ms. Escarraman’s case, the judge denied a restraining order, citing VioGén’s risk score and her husband’s lack of criminal history.
Stefany González Escarraman, who was killed in 2016 by her husband. VioGén had scored her as negligible risk.
About a month later, Ms. Escarraman was stabbed by her husband multiple times in the heart in front of their children. In 2020, her family won a verdict against the state for failing to adequately measure the level of risk and provide sufficient protection.
“If she had been given the help, maybe she would be alive,” said Williams Escarraman, Ms. Escarraman’s brother.
In 2021, Eva Jaular, who lived in Liaño in northern Spain, was slain by her former boyfriend after being classified as low risk by VioGén. He also killed their 11-month-old daughter. Six weeks earlier, he had jabbed a knife into a couch cushion next to where Ms. Jaular sat and said, “look how well it sticks,” according to a police report.
low risk Eva Jaular
2021 Liaño
Since 2007, 247 of the 990 women killed in Spain by a current or former partner were previously scored by VioGén, according to the Interior Ministry. The other victims had not been previously reported to the police, so were not in the system. The ministry declined to disclose the VioGén risk scores of the 247 who were killed.
The Times instead analyzed reports from a Spanish judicial agency, released almost every year from 2010 to 2022, which included information about the risk scores of 98 women who were later killed. Of those, 55 had been classified as negligible risk or low risk.
In a statement, the Interior Ministry said that analyzing the risk scores of homicide victims doesn’t provide an accurate picture of VioGén’s effectiveness because some homicides happened more than a year after the first assessment, while others were committed by a different partner.
Why the algorithm incorrectly classifies some women varies and isn’t always clear, but one reason may be the poor quality of information fed into the system. VioGén is ideally suited for cases when a woman, in the moments after being attacked, can provide complete information to an experienced police officer who has time to fully investigate the incident.
That does not always happen. Fear, shame, economic dependency, immigration status and other factors can lead a victim to withhold information. Police are also often squeezed for time and may not fully investigate.
Elisabeth, a lawyer, is a survivor of gender violence who now advocates for other victims who face institutional mistreatment in Spain. Ana María Arévalo Gosen for The New York Times
“If we already enter erroneous information into the system, how can we expect the system to give us a good result?” said Elisabeth, a victim who now works as a gender violence lawyer. She spoke on the condition her full name not be used, for fear of retaliation by her former partner.
Luz, a woman from a village in southern Spain, said she was repeatedly labeled low risk after attacks by her partner because she was afraid and ashamed to provide complete information to the police, some of whom she knew personally. She got her risk score increased to extreme only after working with a lawyer specializing in gender violence cases, leading to round-the-clock police protection.
extreme risk Luz
2019 Southern Spain
“We women keep a lot of things silent not because we want to lie but out of fear,” said Luz, who spoke on the condition her full name not be used for fear of retaliation by her attacker, who was imprisoned. “VioGén would be good if there were qualified people who had all the necessary tools to carry it out.”
Luz, with her son, said she was labeled lower risk because she was afraid and ashamed to provide complete information about her partner’s abuse to police.
Ana María Arévalo Gosen for The New York Times
Victim groups said that psychologists or other trained specialists should lead the questioning of victims rather than the police. Some have urged the government to mandate that victims be allowed to be accompanied by somebody they trust to help ensure full information is given to authorities, something that is now not allowed in all areas.
“It’s not easy to report a person you’ve loved,” said María, a victim from Granada in southern Spain, who was labeled medium risk after her partner attacked her with a dumbbell. She asked that her full name not be published for fear of retaliation by him.
medium risk María
2023 Granada
Ujué Agudo, a Spanish researcher studying the influence of artificial intelligence on human decisions, said technology has a role in solving societal problems. But it could reduce the responsibility of humans to approving the work of a machine, rather than conducting the necessary work themselves.
“If the system succeeds, it’s a success of the system. If the system fails, it’s a human error that they aren’t monitoring properly,” said Ms. Agudo, a co-director of Bikolabs, a Spanish civil society group. A better approach, she said, was for people “to say what their decision is before seeing what the A.I. thinks.”
Spanish officials are exploring incorporating A.I. into VioGén so it can pull data from different sources and learn more on its own. Mr. Ossorio, a creator of VioGén who works for the Interior Ministry, said the tools can be applied to other areas, including workplace harassment and hate crimes.
The systems will never be perfect, he said, but neither is human judgment. “Whatever we do, we always fail,” he said. “It’s unsolvable problems.”
This month, the Spanish government called an emergency meeting after three women were killed by former partners within a 24-hour span. One victim, a 30-year-old from central Spain, had been classified by VioGén as low risk.
At a news conference, Fernando Grande-Marlaska, the interior minister, said he still had “absolute confidence” in the system.
‘Always cheerful’
A memorial of roses and eucalyptus adorns a lamppost at the entrance to the street where Ms. Hemid lived.
Ana Maria Arevalo Gosen for The New York Times
Ms. Hemid, who was killed outside Madrid in 2022, was born in rural Morocco. She was 14 when she was introduced at a family wedding to Mr. el Banaisati, who was 10 years older than her. She was 17 when they married. They later moved to Spain so he could pursue steadier work.
Ms. Hemid was outgoing and gregarious, often seen racing to get her children to school on time, friends said. She learned to speak Spanish and sometimes joined children playing soccer in the park.
“She was always cheerful,” said Amelia Franas, a friend whose children went to the same school as Ms. Hemid’s children.
Few knew that abuse was a fixture of Ms. Hemid’s marriage. She spoke little about her home life, friends said, and never called the police or reported Mr. el Banaisati before the January 2022 incident.
VioGén is intended to identify danger signs that humans may overlook, but in Ms. Hemid’s case, it appears that police missed some clues. Her neighbors told The Times they were not interviewed, nor were administrators at her children’s school, who said they had seen signs of trouble.
Family members said Mr. el Banaisati had a life-threatening form of cancer that made him behave erratically. Many blamed underlying discrimination in Spain’s criminal system that overlooks violence against immigrant women, especially Muslims.
Police haven’t released a copy of the assessment that produced Ms. Hemid’s low risk score from VioGén. A copy of a separate police report shared with The Times noted that Ms. Hemid was tired during questioning and wanted to end the interview to get home.
A few days after the January 2022 attack, Ms. Hemid won a restraining order against her husband. But Mr. el Banaisati largely ignored the order, family and friends said. He moved into an apartment less than 500 meters from where Ms. Hemid lived and continued threatening her.
Mr. Melguizo, her brother-in-law, said he appealed to Ms. Hemid’s assigned public lawyer for help, but was told the police “won’t do anything, it has a low risk score.”
The day after Ms. Hemid was stabbed to death, she had a court date scheduled to officially file for divorce.
Business
Commentary: Serious backlash to a Netflix/Warner Bros deal may come from European regulators
If you’re looking for where the most crucial governmental backlash to a merger deal involving Warner Bros. Discovery, you might want to turn your attention east — to Europe, where regulators are girding to take an early look at any such deal.
Both of the leading bidders — Netflix, which has the blessing of the WBD board, and Paramount, which launched a hostile takeover bid — could face obstacles from the European Union. EU officials have spoken only vaguely about their role in judging whatever deal emerges, since the outcome of the tussle remains in doubt.
The European Commission “could enter to assess” the outcome in the future, Teresa Ribera, the EU’s top antitrust official, said last week at a conference in Brussels, but she didn’t go beyond that. Pressure is mounting within Europe for close scrutiny of any deal.
A deal with Netflix as the buyer likely will never close, due to antitrust and regulatory challenges in the United States and in most jurisdictions abroad.
— Paramount makes its appeal to the Warner board
As early as May, UNIC, the trade organization of European cinemas, expressed opposition to a Netflix deal. The exhibitors’ concern is Netflix’s disdain for theatrical distribution of its content compared to streaming.
“Netflix has time and again made it clear that it doesn’t believe in cinemas and their business model,” UNIC stated. “Netflix has released only a handful of titles in cinemas, usually to chase awards, and only for a very short period, denying cinema operators a fair window of exclusivity.”
Neither WBD nor Netflix has commented on the prospect of EU oversight of their deal. Paramount, however, has made it a key point in its appeals to the WBD board and shareholders.
In both overtures, Paramount made much of the size and potential anti-competitive nature of Netflix’s acquisition of WBD. In a Dec. 1 letter sent via WBD’s lawyers, Paramount asserted that the Netflix deal “likely will never close due to antitrust and regulatory challenges in the United States and in most jurisdictions abroad. … Regulators around the world will rightfully scrutinize the loss of competition to the dominant Netflix streamer.”
Netflix’s dominance of the streaming market is even greater in Europe than in the U.S., Paramount said, citing a Standard & Poor’s estimate that Netflix holds a 51% share of European streaming revenue. That figure swamps the second-place service, Disney, with only a 10% share. Paramount made essentially the same points in its Dec. 10 letter to WBD shareholders, launching its hostile takeover attempt at Warner.
European business regulators have been rather more determined in scrutinizing big merger deals — and about the behavior of major corporate “platforms” such as Google and X.com — than U.S. agencies, especially under Republican administrations. One reason may be the role of federal judges in overseeing antitrust enforcement by the Federal Trade Commission.
“Despite the European Commission (EC) successfully doling out fines numbering in the billions of euros for giants like Apple and Google for distorting competition, the FTC has struggled significantly in court, losing virtually all its merger challenges in 2023,” a survey from Columbia Law School observed last year.
The survey pointed to differing legal standards motivating antitrust oversight: “American courts have placed undue weight on preventing consumer harm rather than safeguarding competition; by contrast, the EU has remained centered on establishing clear standards for competitive fairness.”
In September, for example, the European Commission fined Google nearly $3.5 billion for favoring its own online advertising display services over competing providers. (Google has said it will appeal.) The action was the fourth multi-billion-dollar fine imposed on Google by the EC since 2017; Google won one appeal and lost another; an appeal of the third is pending.
As an ostensibly independent administrative entity, the EC at least theoretically comes under less political pressure from the 27 individual members of the European Union than the FTC and Department of Justice face from U.S. political leaders.
President Trump has made no secret of his doubts about the Netflix-WBD deal. As I reported last week, Trump has said that Netflix’s deal “could be a problem,” citing the companies’ combined share of the streaming market. Trump said he “would be involved” in his administration’s decision whether to approve any deal.
That feels like a Trumpian thumb on the scale favoring Paramount. The Ellison family is personally and politically aligned with Trump, and among those contributing financing to the bid is the sovereign wealth fund of Saudi Arabia, a country that has recently received lavish praise from Trump. Another backer is Affinity Partners, a private equity fund led by Jared Kushner, Trump’s son-in-law.
The most important question about European oversight of the quest for WBD is what the regulators might do about it. The European Commission tends to be reluctant to block deals outright. The last time the EC blocked a deal was in 2023, when it prohibited a merger between the online travel agencies Booking.com and eTraveli. The EC ruling is under appeal.
At least two proposed mega-mergers were withdrawn in 2024 while they were under the EC’s penetrating “Phase II” scrutiny: the acquisition of robot vacuum cleaner maker iRobot by Amazon, and the merger of two Spanish airlines, IAG and Air Europa.
Typically, the EC addresses potentially anticompetitive mergers by requiring the divestment of overlapping businesses. In the case of Netflix and WBD, the likely divestment target would be HBO Max, which competes directly with Netflix in entertainment streaming. Paramount’s streaming service, Paramount+, also competes with HBO Max but not on the same scale as Netflix.
Antitrust rules aren’t the only possible pitfall for Netflix and Paramount. Others are the EU’s Digital Services Act and Digital Markets Act, which went into effect in 2022. The latter applies mostly to social media platforms—the six companies initially deemed to fall within its jurisdiction were Alphabet (the parent of Google), Amazon, Apple, ByteDance (the parent of TikTok), Meta and Microsoft. Those “gatekeepers” can’t favor their own services over those of competitors and have to open their own ecosystems to competitors for the good of users.
The Digital Services Act imposes rules of transparency and content moderation on large digital services. No platforms owned by Netflix, Paramount or WBD are on the roster of 19 originally named by the EU as falling under the law’s jurisdiction, but its regulations could constrain efforts by a merged company to move into social media.
The EU also has begun to show greater concern about foreign investments in strategic assets. Traditionally, these assets are those connected with national security. But defining them is left up to member countries. As my colleague Meg James reported, the sovereign funds of Saudi Arabia, Abu Dhabi and Qatar have agreed to back the Ellisons’ WBD bid with $24 billion — twice the sum the Ellison family has said it would contribute.
The Gulf states’ role has already raised political issues in the U.S., since the cable news channel CNN would be part of the sale to Paramount (though not to Netflix). Paramount says those investors, along with a firm associated with Kushner, have agreed to “forgo any governance rights — including board representation.”
That pledge aims to keep the deal out of the jurisdiction of the U.S. government’s Committee on Foreign Investment in the United States, or CFIUS, which must clear foreign investments in U.S. companies. But whether it would satisfy any European countries that choose to see Warner Bros. Discovery as a strategically important entity is unknown.
Then there’s Trump’s apparent favoring of the Paramount bid. Trump is majestically unpopular among European political leaders, who resent his pro-Russian bias in efforts to end Russia’s invasion of Ukraine. Trump has castigated European leaders as “weak” stewards of their “decaying” countries.
The administration’s recently published National Security Strategy white paper advocated “cultivating resistance to Europe’s current trajectory” and extolled “the growing influence of patriotic European parties,” which many European leaders interpreted as support for antidemocratic movements.
The document “effectively declares war on European politics, Europe’s political leaders, and the European Union,” in the judgment of the bipartisan Center for Strategic and International Studies.
How all these forces will play out as the bidding war for WBD moves toward its conclusion is imponderable just now. What’s likely is that the rumbling won’t stop at the U.S. border.
Business
What happens to Roombas now that the company has declared bankruptcy?
Roomba maker IRobot filed for bankruptcy and will go private after being acquired by its Chinese supplier Picea Robotics.
Founded 35 years ago, the Massachusetts company pioneered the development of home vacuum robots and grew to become one of the most recognizable American consumer brands.
Over the years, it lost ground to Chinese competitors with less-expensive products. This year, the company was clobbered by President Trump’s tariffs. At its peak during the pandemic, IRobot was valued at $3 billion.
The bankruptcy filing, which happened on Sunday, has raised fear among Roomba users who are worried about “bricking,” which is when a device stops working or is rendered useless due to a lack of software updates.
The company has tried assuaging the fears, saying that it will continue operations with no anticipated disruption to its app functionality, customer programs or product support.
The majority of IRobot products sold in the U.S. are manufactured in Vietnam, which was hit with a 46% tariff, eroding profits and competitiveness of the company. The tariffs increased IRobot’s costs by $23 million in 2025, according to its court filings.
In 2024, IRobot’s revenue stood at $681 million, about 24% lower than the previous year. The company owed hundreds of millions in debt and long-term loans. Once the court-supervised transaction is complete, IRobot will become a private company owned by contract manufacturer Picea Robotics.
Today, nearly 70% of the global smart vacuum robot market is dominated by Chinese brands, according to IDC, with Roborock and Ecovacs leading the charge.
The sale of a famous household brand to a Chinese competitor has prompted complaints from Silicon Valley entrepreneurs and politicians, citing the case as a failure of antitrust policy.
Amazon originally planned to acquire IRobot for $1.4 billion, but in early 2024, it terminated the merger after scrutiny from European regulators, supported by then-Federal Trade Commission Chair Lina Khan. IRobot never recovered from that.
The central concern for the merger was that Amazon could unduly favor IRobot products in its marketplace, according to Joseph Coniglio, director of antitrust and innovation at the think tank Information Technology and Innovation Foundation.
Buying IRobot could have expanded Amazon’s portfolio of home devices, including Ring and Alexa, he said, bolstering American competition in the robot vacuum market.
“Blocking this deal was a strategic error,” said Dirk Auer, director of competition policy at the International Center for Law & Economics. “The consequence is that we have handed an easy win to Chinese rivals. IRobot was the only significant Western player left in this space. By denying them the resources needed to compete, regulators have left American consumers with fewer alternatives to Chinese dominance.”
“While IRobot has become a peripheral player recently, Amazon had the specific capacity to reverse those fortunes — specifically by integrating IRobot into its successful ecosystem of home devices,” Auer said. “The best way to handle global competition is to ensure U.S. firms are free to merge, scale and innovate, rather than trying to thwart Chinese firms via regulation. We should be enabling our companies to compete, not restricting their ability to find a path forward.”
Business
California unemployment rises in September as forecast predicts slow jobs growth
California lost jobs for the fourth consecutive month in September — and it’s expected to add only 62,000 new jobs next year as high taxes drag on business formation, according to a report released Thursday.
The annual Chapman University economic forecast released Thursday found that the state’s job growth totaled just 2% from the second quarter of 2022 to the second quarter of this year, ranking it 48th among all states.
That matches California’s low ranking on the Tax Foundation’s 2024 State Business Tax Climate Index, which measures the rate of taxes and how they are assessed, according to the Gary Anderson Center for Economic Research report by the Orange, Calif., school.
The state also experienced a net population outflow of more than 1 million residents from 2021 to 2023, with the top five destinations being states with zero or very low state income taxes: Texas, Arizona, Nevada, Idaho and Florida, the report noted.
What’s more, the average adjusted gross income for those leaving California was $134,000 in 2022, while for those entering it was $113,000, according to the most recent IRS data on net income flows cited by the report.
“High relative state taxes not only drive out jobs, but they also drive out people,” said the report, which expects just a 0.3% increase in California jobs next year leading to the 62,000 net gain.
More unsettling, the report said, was a “sharp decline” in the number of companies and other advanced industry concerns established in California relative to other states, in such sectors as technology, software, aerospace and medical products.
California accounted for 17.5% of all such establishments in the fourth quarter of 2018, but that dropped to 14.9% in the first quarter of this year. Much of the competition came from low-tax states, the report said.
California saw the number of advanced industry establishments grow from 89,300 to 108,600 from 2018 through this year, but low-tax states saw a 52.2% growth rate from 164,000 to 249,600 establishments, it said.
Also on Thursday, the U.S. Bureau of Labor Statistics released its monthly states jobs report, which had been delayed by the government shutdown. It, too, showed California had a weak labor market with the state losing 4,500 jobs for the month, edging up its unemployment rate from 5.5% to 5.6%, the highest in the nation aside from Washington, D.C.
The state has lost jobs since June as tech companies in the Bay Area and elsewhere shed employees and spend billions of dollars on developing artificial intelligence capabilities.
There have also been high-profile layoffs in Hollywood amid a drop-off in filming, runaway production to other states and countries, and industry consolidation, such as the bidding war being conducted over Warner Bros. Discovery. The latter is expected to bring even deeper cuts in Southern California’s cornerstone film and TV industry.
Michael Bernick, a former director of California’s Employment Development Department, said such industry trends are only partially to blame for the state’s poor job performance.
“The greater part of the explanation lies in the costs and liabilities of hiring in California — costs and especially liabilities that are higher than other states,” he said in an emailed statement.
Nationally, the Chapman report cited the Trump administration’s tariffs as a drag on the economy, noting they are greater than the Smoot-Hawley Tariff Act of 1930 thought to have exacerbated the Great Depression.
That act only increased tariffs on average by 13.5% to 20% and mainly on agricultural and manufactured products, while the Trump tariffs “cover most goods and affect all of our trading partners.”
As a consequence, the report projects that annual job growth next year will reach only 0.2%, which will curb GDP growth.
The report predicts the national economy will grow by 2% next year, slightly higher than this year’s 1.8% expected rate. Among the positive factors influencing the economy are AI investment and interest rates, while slowing growth — aside from tariffs and the jobs picture — is low demand for new housing.
The report cites lower rates of family formation, lower immigration rates and a declining birth rate contributing to the lower housing demand.
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Miami, FL1 week agoUrban Meyer, Brady Quinn get in heated exchange during Alabama, Notre Dame, Miami CFP discussion
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Cleveland, OH1 week agoMan shot, killed at downtown Cleveland nightclub: EMS
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World1 week ago
Chiefs’ offensive line woes deepen as Wanya Morris exits with knee injury against Texans
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Minnesota1 week agoTwo Minnesota carriers shut down, idling 200 drivers