Secretary Gina Raimondo said the Commerce Department supports a proposal aiming to block Big Tech giants from giving preferential treatment to their own products and services. This adds to the Biden administration’s support behind the American Innovation and Choice Online Act (AICOA). This follows a letter the Department of Justice (DOJ) presented in support of the AICOA. The proposed act would block dominant online companies such as Amazon, Apple, Meta and Google from preferencing their products and discriminating against rivals on their platforms.
There are two provisions included in the legislation that would directly impact how covered Big Tech platforms are able to use and manage data on their platforms. First, the legislation would make it unlawful for covered platforms to “use non-public data” that is generated by the platform to offer its “own products or services.” This restriction is intended to prevent online marketplaces like Amazon from using data about popular products sold on its platform to offer its own competing products. Second, the legislation would make it unlawful for covered platforms to restrict business users from “accessing data generated on the covered platform by the activities of the business user, or through an interaction of a covered platform user with the business user’s products or services.”
In addition, Raimondo also threw the Commerce Department support behind the Kids Online Safety Act, a bipartisan bill introduced by Sens. Richard Blumenthal (D-Conn.) and Marsha Blackburn (R-Tenn.) which require social media platforms to take additional measures to keep safe children under 16 online, including by providing families with safety tools and additional transparency measures.
Some experts consider the AICOA as legislators’ best shot at making substantial reform to laws that govern Big Tech. The bill has significant implications for Amazon, Apple and Google in particular, although it would also apply to other large platforms like Meta (Facebook) and TikTok. Here is an opinion piece we found of interest relating to the Commerce Department backing of the AICOA.
Major tech antitrust bill gets backing of US Commerce Department
In an opinion piece “Major tech antitrust bill gets backing of US Commerce Department” for CNN, Brian Fung, reporter, discusses the Commerce Department’s backing of a key legislative proposal aimed at forcing tech giants such as Facebook and Google to compete against smaller businesses. Commerce Department Agency Secretary Gina Raimondo applauded the efforts by Sens. Amy Klobuchar and Rep. David Cicilline to champion the AICOA which would prohibit Big Tech from unfairly favoring their own proprietary services on their platforms over those of competing businesses.
Fung reports that Raimondo’s endorsement could provide a further boost to the legislation as US lawmakers seek to follow in the footsteps of the European Union (EU). The EU has approved two sweeping legislative proposals to regulate social media and competition in technology markets. Under the proposed US legislation, Apple would have to allow iPhone users to install apps from non-official app stores, while companies such as Google could have to change how they display search results, he adds. Read the full article on CNN.
Disclosure: Fatty Fish is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
The Fatty Fish Editorial Team includes a diverse group of industry analysts, researchers, and advisors who spend most of their days diving into the most important topics impacting the future of the technology sector. Our team focuses on the potential impact of tech-related IP policy, legislation, regulation, and litigation, along with critical global and geostrategic trends — and delivers content that makes it easier for journalists, lobbyists, and policy makers to understand these issues.
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