PublishedJanuary 11, 2022

CCIA Response To Senate Judiciary Committee’s Announced Markup of Bill Aimed At Handful of Companies

Washington —  The Senate Judiciary Committee has noticed a markup of S. 2992, the American Innovation and Choice Online Act, aimed at regulating a specific group of American digital service providers. The proposed regulation represents a shift from the market-oriented principles that have characterized U.S. economic policy. It would have a severe impact on U.S. economic leadership, and decrease consumers’ ability to enjoy free digital services, and potentially put U.S. user data and national security at risk.

The Computer & Communications Industry Association, which represents small, medium, and large digital services, has advocated for competition in the tech industry for 50 years.

The following can be attributed to CCIA President Matt Schruers:

“Rather than explore antitrust reform across the economy, this bill singles out a handful of successful U.S. companies, picking winners and losers, at a time when consumers are frustrated with higher prices and fewer options in other segments of the economy.” 

“Gerrymandering regulations around a handful of leading businesses will skew competition and leave consumers worse off.  By hamstringing successful U.S. tech companies without even imposing corresponding obligations on foreign rivals, this shortsighted legislation will put the data and security of U.S. users at risk.” 

“While Congress works to maintain the United States’ technology lead vis-a-vis China, the Senate Judiciary Committee is considering legislation to weaken U.S. tech companies and force them to provide critical information to foreign competitors. This bill disregards the principles that have governed the U.S. market economy and would stop successful digital services from providing consumers with the products and services that they love.”

CCIA VP of Public Policy, Arthur Sidney adds:

“Not only is this Senate companion bad policy, it doubles down on a segment of Congress that has made it their intention to break tech companies, when consumers are not asking for Congress’s intervention in these matters.  Even worse, neither this bill nor its House companion have had a hearing for Members to learn about the risks this legislation poses to U.S. consumers, to the digital economy and to national security.”

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