Palo Alto, Calif. - Facebook surpassed MySpace in U.S. Web traffic for the first time ever in the month of May, TechCrunch reported, citing data from Internet audience measurement firm comScore. [more..]

Los Angeles - The transition to digital television broadcasting went off with relatively few problems, although the Federal Communications Commission (FCC) received nearly 800,000 calls from consumers last week with questions related to the transition, the Associated Press reported. [more..]

London - U.K. ISP Virgin Media has partnered with Universal Music Group to launch an unlimited music download service, and more controversially has also agreed to work with the label to suspend the accounts of repeat file-swappers. [more..]

New York - Online retailer Amazon.com has agreed to pay $51 million to settle a lawsuit with toy retailer Toys R Us over their partnership to sell toys online, the Associated Press reported. [more..]

Washington - A group of small cable TV operators has petitioned the Federal Communication Commission (FCC) to halt the practice of content providers charging "discriminatory" rates to ISPs in exchange for exclusive content, as they say is the case with Disney's ESPN360 broadband service, Ars Technica reports. [more..]

London - Lovefilm, a U.K.-based online DVD rental service, is in the midst of buyout talks with potential suitors that include KKR and Silver Lake Partners, the Financial Times reported.
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Washington - For the first time, Army soldiers at most U.S. bases now have access to social networking sites like Facebook, Twitter and Flickr, following a new order issued by Army officials and published by Wired.com. [more..]

Scottsdale, Ariz. - Broadband-connected video game consoles will remain the top device for streaming Web video to U.S. television sets through 2013, when over 10.7 million consoles will be used to access such services, according to a report from market research firm In-Stat. [more..]

New York - Digimarc, a provider of digital watermarking and other technologies, announced on Monday that it has partnered with ratings provider Nielsen on two new joint ventures, which the companies say will "leverage the intellectual property assets of Digimarc and the wealth of consumer and business data amassed by Nielsen." [more..]

New York - IAC, the holding company that operates Internet firms including Citysearch, Evite and Ask.com, announced on Monday that it sold the assets of its Very Short List cultural email newsletter to a joint venture with Observer Media Group. [more..]

Redwood City, Calif. - YuMe, the provider of a video ad management platform and online video ad network, has raised $2.9 million of a $4.5 million round of equity, VentureWire reported. [more..]

New York - The Huffington Post has named former Ziff Davis chairman and CEO Eric Hippeau as its new chief executive, replacing Betsy Morgan, who joined the company in late 2007, PaidContent reports. [more..]

San Francisco - Digital music service eMusic said that its recent price increase which has many users unhappy had more to do with calls to raise prices from independent labels than it did with its new deal to add Sony Music's catalog to its offering, Wired.com reported. [more..]

San Francisco - The Internet Advertising Bureau (IAB) said on Monday that it has established a set of in-game advertising guidelines, the first of their kind, which seek to establish a common methodology for counting impressions and simplify the process of buying and selling the format. [more..]

Los Angeles - Further expanding its "no convenience fees" summer concert ticket sales promotion, Live Nation said on Monday that it will offer "all-in" $24.99 lawn seat tickets to events at all of its amphitheaters on Wednesday. [more..]

Los Angeles - The Associated Press has announced plans to begin syndicating articles published by non-profit watchdog and investigative journalism sources for free to its 1,500 member newspapers. [more..]

Los Angeles - Production company Prometheus Entertainment ("Bridget's Sexiest Beaches") has signed a deal with Axelist.com, a site that highlights users' complaints, to create a half-hour TV show, Variety reports. [more..]