This Day in Legal History: Sandra Day O’Connor Nominated to the Supreme Court
On July 7, 1981, President Ronald Reagan announced that he was nominating Sandra Day O’Connor to the Supreme Court of the United States. If confirmed, she would become the first woman ever to serve on the Court in its then-191-year history. The Senate confirmed her later that summer by a vote of 99 to 0, and she took her seat in September 1981.
O’Connor’s path to the Court was, in its own way, a commentary on the barriers women faced in the legal profession. She had graduated near the top of her class at Stanford Law School in 1952—ahead of, among others, William Rehnquist, who would one day be her Chief Justice—and yet law firms in California would not hire her as a lawyer. One offered her a job as a legal secretary. She built her career instead in public service and in Arizona politics, eventually rising to become the majority leader of the Arizona state senate, the first woman in the country to hold such a post, before moving to the bench as a state judge. When Reagan, who had promised during his campaign to appoint a woman to the Court, chose her, he was reaching past the federal appellate judiciary—which had almost no women on it—into state government.
On the Court, O’Connor became famous as a pragmatic, case-by-case decision-maker who resisted sweeping rules, and for roughly a quarter century she sat at the ideological center, casting decisive votes on abortion, affirmative action, campaign finance, religion, and the limits of federal power. Her approach frustrated those who wanted bright-line doctrines from either side, but it made her, for a generation, arguably the most powerful jurist in the country—the swing vote whose reasoning lower courts and litigants had to anticipate.
Her nomination matters in legal history not only because it broke a barrier that had stood since 1789, but because of what came after it. Once one woman had sat on the Court and served with distinction, the question was no longer whether a woman could do the job but why it had taken so long. O’Connor herself was characteristically understated about the symbolism, insisting that she wanted to be judged on the quality of her arguments rather than her place in history. But the two are not really separable. The fact that a brilliant lawyer could be turned away from every firm that interviewed her, and then go on to become the deciding vote on the highest court in the land, is a reminder of how much talent the profession wasted for how long—and of how quickly a barrier that seems permanent can fall once someone is finally allowed through it.
Meta has disclosed that four states are seeking as much as $1.4 trillion in penalties heading into an August trial over claims that the company deliberately designed Facebook and Instagram to addict young users. The figure—close to Meta’s entire market value of around $1.5 trillion—came out in a court filing in which Meta argued the number is wildly excessive and, in its words, “has no analog in the history of consumer protection enforcement.”
California, Colorado, Kentucky, and New Jersey are among the states suing Meta, alleging that the company engineered features to keep teenagers compulsively engaged—infinite scroll, autoplay, manipulative notifications—while publicly downplaying the harm to young users’ mental health. The case is set for trial in Oakland in August. The eye-popping penalty number comes from how state consumer-protection laws are structured: they typically set a fixed statutory fine per violation, and the states arrive at $1.4 trillion by multiplying that per-violation fine by an enormous number of alleged violations, one for roughly every affected young user, across years of conduct.
Think about how that math works and why it produces such a staggering figure. If a law says you owe, say, a few thousand dollars per violation, that sounds modest—until the “violations” are counted in the tens or hundreds of millions because each affected teenager, each exposure, is its own violation. Statutes written to punish a corner store for mislabeling a product start to generate astronomical numbers when applied to a platform that touches nearly every teenager in a state. That’s the tension at the heart of this filing: the states say they’re simply applying the law as written, and Meta says applying it that way produces a number no legislature could possibly have intended.
The significance here isn’t really the trillion-dollar headline, which almost no one expects to be the actual outcome. It’s what the fight over the number reveals. Penalty calculations like this are leverage—they shape settlement negotiations and signal how seriously a court might treat the underlying conduct. The case is one of the most important tests yet of whether decades-old consumer-protection statutes can be turned against the design choices of social media platforms, and whether “we built it to be addictive” can be treated as a deceptive or unfair business practice. However the penalty question resolves, the theory of liability is the thing to watch.
Meta says US states are seeking $1.4 trillion in penalties in August youth safety trial | Reuters
A coalition of twenty-two Democratic state attorneys general has come out against the Trump administration’s plan to impose tariffs of up to 12.5% on 59 countries and the European Union, tariffs the administration justifies as a response to trade in goods made with forced labor. The attorneys general, led by California’s Rob Bonta, call the levies unlawful and describe them as a pretext to resurrect tariff authority the Supreme Court has already rejected.
Tariffs are taxes on imports, and the Constitution gives the power to levy taxes primarily to Congress. Presidents can impose tariffs, but only when Congress has delegated them that authority through a specific statute, and each of those statutes comes with its own conditions and limits. Earlier tariffs from this administration were struck down when courts found the President had stretched his delegated power past what the law allowed. Now the administration is invoking forced-labor concerns as the legal basis for a new round. The Democratic attorneys general argue that this is the same overreach in a new costume—that dressing tariffs up as a human-rights measure doesn’t cure the underlying problem, which is that the President is claiming a taxing power Congress never handed him.
Consider the practical reach of what’s proposed. The attorneys general say these tariffs would hit roughly 99% of imports. A tariff, whatever its stated purpose, is ultimately paid by importers and passed along to consumers in higher prices. So the debate isn’t only an abstract argument about the separation of powers—it’s about who gets to decide to raise the cost of nearly everything Americans buy from abroad, and whether that decision belongs to one person in the executive branch or to Congress. The forced-labor rationale is genuinely important on its own terms; forced labor in global supply chains is a real and serious problem. But the attorneys general are making a structural point: even a good goal doesn’t authorize a power the law doesn’t grant.
The significance is that this is another front in an ongoing constitutional struggle over how far presidential trade power extends. The attorneys general are signaling they will litigate, and the courts have already shown, in striking down the earlier tariffs, that they are willing to police the boundary. Watch for whether this dispute follows the same path to the Supreme Court, because the answer will shape not just this set of tariffs but how much unilateral economic power any president can claim by pointing to a sufficiently sympathetic justification.
Democratic AGs oppose Trump plan to impose tariffs on forced labor concerns | Reuters
The U.S. Patent and Trademark Office has abandoned an unusual set of trademark applications it had filed to register the phrase “Board of Peace” on behalf of President Trump, walking away from the filings after sharp criticism from congressional Democrats and questions about whether the agency had any legal authority to file them in the first place. The government filed an express abandonment of the applications, ending what one member of Congress called an unlawful venture.
A trademark protects a brand—a word or logo used to identify the source of goods or services in commerce. Normally, a person or company files their own application, or has their lawyer file it for them. What happened here is that the Director of the Patent and Trademark Office, the head of the very agency that examines and grants trademarks, filed applications to register “Board of Peace” on the President’s behalf. And that raised an immediate legal problem: the Lanham Act, the federal trademark statute, generally forbids filing an application on behalf of another person unless you are that person’s attorney—and the Director specifically was not acting as Trump’s lawyer.
Think about why that rule exists and why the arrangement looked so troubling. The agency that decides who gets a trademark is supposed to be a neutral referee. When the head of that agency personally files an application for the President, the referee has stepped onto the field to play for one team. Even setting aside the specific statutory bar, it collapses the distinction between the government official who grants rights and the private party who receives them. Critics questioned not just the legality but the transparency of the whole exercise—who authorized it, on what authority, and why the trademark office was branding a presidential initiative at all.
The significance is less about the phrase “Board of Peace” and more about the guardrails around a powerful administrative agency. Trademark law has technical rules about who may file and on whose behalf, and those rules are part of what keeps the system credible. The abandonment—prompted by oversight from the House Judiciary Committee’s Democrats—shows those guardrails still functioning: an irregular filing was flagged, its legal basis questioned, and the agency backed down before a court had to intervene. It’s a small episode in the scheme of things, but a clean illustration of how ordinary statutory limits and legislative oversight can check an official who reaches beyond his role.
US trademark office abandons ‘Board of Peace’ branding rights applications | Reuters
In my column for Bloomberg Tax this week, I take on the administration’s threat to hit countries that have digital services taxes with 100% tariffs. My argument, in short, is that this is an ill-advised response—it isn’t really a defense of the U.S. tax system at all, but an attempt to use consumer-funded trade pain to shield big tech from foreign tax bills.
Let me set up the problem. A digital services tax, or DST, is a levy some foreign governments impose on the local digital revenue of companies like Alphabet, Meta, Apple, Amazon, or Netflix. These firms can earn enormous revenue from users in a country without ever having the kind of physical presence that the traditional international tax system was built to tax. Netflix can stream into a jurisdiction, pull revenue out of it, and never owe local tax. So foreign governments invented DSTs to capture some of that. The U.S. response, apparently, is to threaten tariffs on that country’s completely unrelated goods until the tax goes away. The logic is that if Google has to pay France a modest tax on its digital revenue, someone in Cleveland might have to pay more for their champagne.
I want to be fair to both sides here, because I actually think both have a point. DSTs genuinely deserve criticism—they’re blunt instruments that tax gross revenue rather than profit, which means they can overtax low-margin business, and they’re often designed with revenue thresholds conveniently set to catch every big U.S. tech firm while sparing domestic companies. So the U.S. complaint that these taxes are tailored to skim revenue from American firms is not baseless. But foreign governments also have a legitimate grievance: the old international tax rules really do struggle to tax digital businesses that earn a fortune from local users without setting foot in the country.
Here’s where I think the tariff response falls apart. A blanket 100% tariff doesn’t fix any of a DST’s design flaws. It doesn’t determine where digital value is actually created, it doesn’t allocate taxing rights, and it doesn’t even fall on the foreign government. Tariffs are paid by importers, and most of that cost gets passed along to consumers. With last year’s tariffs, as much as ninety percent of the economic burden landed on domestic firms and consumers. So think about how strange this is as tax policy: the companies facing the foreign tax are the largest and richest technology firms in the world, but the companies and consumers who’d actually feel the tariff are unrelated domestic players. No one is literally cutting Meta a reimbursement check, but the effect is the same—American consumers and importers become the leverage used to protect Silicon Valley from foreign tax exposure.
And the bilateral approach has a nasty structural problem. The administration seems emboldened by the Canada episode—Canada moved to collect its DST, the U.S. threatened trade consequences, and Canada backed down. The apparent lesson the administration drew is that a big enough threat can make any foreign tax disappear. But if the U.S. treats tariff threats as a standing veto over other countries’ tax policy, then every DST becomes a bilateral confrontation—France, Spain, Italy, the UK, one hostage negotiation after another—and it invites everyone else to adopt the same playbook the moment U.S. firms need something from them.
So what I argue for instead is a binding, multilateral framework, and I lay out three pieces it would need. First, countries with DSTs agree to repeal them once a replacement is in place—the goal is to swap the ad hoc levies for something coherent, not stack a new rule on top of them. Second, market jurisdictions get, and help design, a predictable formula for their share of taxing rights over digital multinationals—something administrable and tied to a defensible theory of where digital profits are earned. And third, the U.S. keeps its powder dry: retaliation stays in reserve for countries that refuse the framework or discriminate against U.S. firms, applied with due process and proportionality, not as a one-size-fits-all tariff bazooka every time a foreign tax annoys Silicon Valley. Until we build that kind of system, the DST fight is just going to keep coming back.
US Tariff Threat Is an Ill-Advised Digital Services Tax Reaction | Bloomberg Tax
