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

BY Heather Greenfield
January 11, 2022

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.”

Related Articles

New Research Reveals Strong Price Competition Between Online and Offline Sales Channels

Aug 15, 2022

Washington – A new economic study by the Brattle Group finds strong evidence on the dynamic competitive relationship between online and brick-and-mortar retail sales channels: both channels fiercely compete on price, with offline sales channels often directing price trends. The Brattle study uses data from NPD to analyze nation-wide online and offline prices and volumes…

CCIA Welcomes House Passage of CHIPS Bill

Jul 28, 2022

Washington – Following the Senate’s vote to advance, the House passed legislation to boost U.S. competitiveness with investment in U.S. microchip manufacturing, 5G wireless deployment, basic science, and research and development. The CHIPS Act passed the Senate Wednesday and will now be sent to President Biden to be signed into law.  The legislation will help…

CCIA Applauds Advancement of CHIPS bill in Senate

Jul 20, 2022

Washington – The Senate is moving ahead with debate on a broader bill to boost U.S. competitiveness with investment in U.S. microchip manufacturing, 5G wireless deployment, basic science, and research and development. Senators voted 64-34 on Tuesday night to move ahead with debate on H.R. 4346, the current legislative vehicle carrying the “CHIPS Act,” a…