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2022 will be the ‘do or die’ moment for Congress to take action against Big Tech

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Mark Zuckerberg, founder and chief executive officer of Facebook Inc., spoke during Wednesday’s hearing before the House Energy and Commerce Committee in Washington, D.C., U.S. on Wednesday, April 11. 2018.

Andrew Harrer | Bloomberg | Getty Images

The New Year could be a pivotal one for tech policy — if Congress can move to act before the 2022 midterm season kicks into high gear.

There is broad support for bipartisan proposals that update the Competition Law, protect online children and install privacy rights on the Internet. Many important bills have been stalled due to disagreements over how these laws should be drafted and the existence of other urgent legislative priorities.

Numerous bills have been introduced and there has been renewed anger from legislators over potential negative effects of websites like Facebook Google’s YouTubeA. former Facebook employee’s testimony and leaked documentsThere could be just enough momentum to move some of these proposals forward.

In the interim, agencies from government are expected to continue with new regulations.

A Republican takeover could stop antitrust legislation

In 2022, there are many things going on in the antitrust field that could lead to major changes. It includes both legislation and possible regulations as well enforcement actions of the Federal Trade Commission or Department of Justice Antitrust Division.

Paul Gallant of Cowen’s Washington Research Group, said that the likely Republican takeover means 2022 for antitrust legislation in tech. This is the greatest threat for Washington-based companies. We won’t be seeing it return until 2025 if they are able to stop that.

A package of tech-focused antitrust bills have already crossed a major hurdle in the HouseWith bipartisan votes from the Judiciary Committee, they are now moving forward. However, even so, legislators expressed reservations and the Senate companion legislation must clear the initial hurdle.

Rep. David Cicilline from Rhode Island, the chairman of the Judiciary subcommittee for antitrust, said in a telephone interview that he and his staff have been working hard to make sure other members are up-to-date on the legislation. These are the billsThese were the result of a 16-month investigationby the subcommittee to the competitive practices Amazon, AppleFacebook and Google found they each have monopoly powers and suggested legislative changes to foster competition in digital marketplaces.

Cicilline stated that while his coworkers may not have been supportive of the bill at the beginning, “When people read the bills and get briefed from my staff, there’s tremendous support for this whole package.”

He stated that he is optimistic that the bills would ultimately enjoy strong bipartisan support, when brought to the floor as either a group of two or as an individual.

He stated, “I believe we will succeed them.”

Timing is a major obstacle as Congress continues to examine the impacts of the coronavirus pandemic.

The window to pass antitrust tech legislation will remain open through Labor Day. Gallant stated that was all.

“I think that the crucial thing is whether Biden gets involved,” said he. If Biden feels it is important that the party pass antitrust tech legislation, it can help give the party the momentum it needs to move it forward.”

Cicilline claimed that officials from the Administration “worked closely” with him as they put together the bills and added that they continue to be in “very regular contact with all of the important players within the Administration who are responsible for the competition policy.”

The White House must decide what legislative priorities it will support ahead of the midterm elections that will be determining how much of Biden’s agenda can still be accomplished before the end his term. Gallant indicated that “tech antitrust” is one of his priorities. Gallant indicated that the decision on whether or not it will make it to the final round is yet “TBD.”

The American Innovation and Choice Online Act (introduced by senators) is one of many proposed bills. The Senate has received significant support for the American Innovation and Choice Online Act, which was introduced by Sens. Amy Klobuchar (D-Minn.) and Chuck Grassley (R-Iowa). This bill is a companion to Cicilline’s House bill. Grassley, along with other Republicans, has shown promise in support of the proposal which would ban dominant platforms discriminating against businesses that rely upon their services.

U.S. U.S.

Ting Shen | Pool | Reuters

Antitrust regulators will keep moving forward in 2022 as the Federal Trade Commission and Department of Justice Antitrust Division both gain progressive heads in Lina Khan and Jonathan Kanter.

Lina Khan, FTC commissioner nominee, speaks during the confirmation hearing for Senate Committee on Commerce, Science and Transportation on Capitol Hill, Washington, DC, on April 21, 2021.

AFP – Getty Images| AFP | Getty Images

Sarah Miller (executive director, American Economic Liberties Project), which promotes stronger antitrust regulations, said that Congress will most likely let enforcement agencies lead.

Both inherited significant lawsuits and probes into Big Tech firms that they are expected to keep. The FTC indicated that it would consider rulemaking regarding key issues such as labor and the consumers’ rights to repair their products, without ending their warranty.

Both the FTC and DOJ continue to pursue Google and Facebook on antitrust grounds. After a judge dismissed the FTC’s claims initially, it filed an amended complaint. However, the court gave Facebook another opportunity to present its case.

According to reports, the FTC is also investigating Amazon. The DOJ has been reportedly taking on Apple. Gallant said that an Apple lawsuit was more likely in 2022 due to FTC resources constraints. But he still believes Amazon will be subject to an antitrust investigation. Gallant expected that Apple’s DOJ would bring a state lawsuit against it. Epic Games’ lawsuit against the companyHowever, it is possible to be much larger.

These agencies will decide how they handle merger enforcement. Already, the FTC gave early warnings that more deals could be deemed anticompetitive. However, resources are limited due to the recent merger boom.

Miller stated, “Working against FTC is that they have to prevent mergers.” Miller stated that with every decision on whether or not to pursue conduct cases against a merger, Miller asked the agency to ask, “Do we believe that if it moves forward, that we will regret it later because that’ll tie us up?”

Privacy

While the lawmakers seem to be stuck on broad privacy legislation since a while they have appeared to be fairly close on key issues. However, the lawmakers appear to be pressing for legislation.

Caitriona Fitzgerald is the deputy director at the Electronic Privacy Information Center. She advocates for privacy laws that are strong and said it was a matter of priority.

According to her, “We are seeing sufficient indications from agencies it is a priority that I believe it’s something that the Biden administration has in mind and that they hope next year that they will act on it.”

Both Democrats and Republicans disagree on two key issues: whether a bill to protect digital privacy should contain private rights for individuals who are subject to data violations, and whether federal laws should prevail over state laws. Although both sides left room for compromise, there is no digital privacy law currently in the U.S.

CNBC spoke with a Republican aide to the House Energy and Commerce Committee who was not allowed to speak publicly about future legislation. He said that staff had made “some pretty solid progress” prior Covid’s arrival and “everything kinda stalled.” According to the aide, Democrats seem “pretty happy” with California’s privacy laws being used as primary legislation in this space. Republicans prefer a national solution that would preempt state laws.

A representative for the House E&C Democrats did not immediately respond to a request for comment.

New understandings about tech’s effect on children, partly based on documents leaked by Frances Haugen (an ex-Facebook employee) have breathed new life to the topic, as far as kids are concerned. Fitzgerald cautioned that Congress must not forget to pass a comprehensive privacy bill, even though a bill focusing on children would be more politically viable.

“It can’t be that like a switch flips when someone’s 18 years old and then their privacy’s gone,” she said. In this Congress, which has few large legislative packages, it would be nice if privacy legislation was done to ensure that everyone is protected, and not just children.

The Federal Trade Commission indicated, however, that it would continue its efforts to regulate the industry. consider privacy rulemakingand Commerce Department’s National Telecommunications and Information Administration said it will solicit commentData privacy concerns

Legislation that is children-focused

The widespread outrage expressed by members following the revelations made about Facebook’s effects on children through Haugen’s internal research, is helping to position legislation to safeguard kids’ online safety well for next year.

Gallant admitted that he is skeptical about whether the Haugen revelations will fundamentally alter the privacy calculation in Congress, but he stated an update to the Children’s Online Privacy Protection Act from Sen. Ed Markey, D-Mass“has a good chance of moving through both the houses by ’22,” said.

Internal Facebook research that showed the company’s products had significant negative effects on young people angered both parties. There were several hearings between lawmakers and executives, where they seemed to have reached an agreement on the need to urgently protect children.

Matt Fossen (U.S. communications manager at Proton), a company which makes encrypted email and promotes stronger privacy protections for children, suggested that kid-focused privacy legislation might have a distinct advantage over wider reforms.

“Unlike other interests and pursuits and goals that exist within the privacy sphere, child privacy … has a precedent,” he said. “We have laws and regulations, which we already have the ability to use. It is possible that there would be fewer hurdles to clear to make it a little easier for American kids.

Net Neutrality

Biden sent out strong messages through his competition executive order and personnel choices that he would like to see. net neutrality brought back to life. This term is used to refer to the notion that Internet Service Providers (ISPs), should be fair with all traffic and not block or throttle sites.

The Federal Communications Commission adopted this principle in 2015. It voted to reclassify ISPs in Title II of 1934’s Communications Act of 1934. This makes them utilities, and opens up future price regulation.

In 2017, the FCC had a Republican majority under the Trump administration and voted in favor of repealing the rules.

Biden has been confirmed for another term by the Senate. Now, he is waiting to vote in his place as commissioner. Both men have expressed support for the reinstatement of net neutrality rules.

Although Congress discussed the possibility that net neutrality could be made a law in order to eliminate concerns over Title II price regulation, it will probably face a difficult battle with a Congress divided by many other priorities.

Gallant stated that the possibility of net neutrality rules being reinstated has already been “baked into” the ISP stocks.

Title II has some concerns, however they are as confident as can be about the Chair. [Jessica]Rosenworcel “is an honest broker in broadband policy, and as good as any pick they could get for their top regulator,” said he.

Section 230

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