Electronic commerce, the Internet and computing promise new opportunities for businesses and services.  Unfortunately, Federal and State governments sometimes view the Internet and electronic commerce as a new platform for government-provided products and services for consumers in direct competition with private sector market participants.  These e-commerce ambitions by government entities are separate and distinct from e-government initiatives to digitize and modernize traditional governmental functions.

CCIA’s View:

CCIA views government efforts to launch competitive e-commerce initiatives with great trepidation. While we support government efforts to modernize operations, improve taxpayer services and utilize the tools and technologies of the Information Age, we cannot support the government as a competitor in commercial markets.  Such activity is antithetical to a successful free market and unfair to American taxpayers and shareholders of private businesses, who are forced to compete with publicly-funded government entities.

CCIA believes that the government injecting itself into the competitive software industry market with the goal of replacing private financial services will have new and far-reaching impacts, such as destabilizing competition, private investment and innovation.  The important goals of tax simplification and tax reform can be achieved without unnecessarily inserting the federal government into a new economic role currently played by the private technology sector.  Reduction of taxpayer burden can be achieved by non-monetary partnering with the private sector (through initiatives like the Free File Alliance) without reducing the essential citizen-centric and decentralized character of the U.S. voluntary compliance tax system.

Most Recent Statements&Findings:

CCIA Welcomes the Council’s General Approach on the Digital Services Act, Cautions More Work Needed on the Digital Markets Act

Brussels, BELGIUM — The Computer & Communications Industry Association welcomes the general approach reached today by the EU Ministers on the digital services act (DSA), but cautions that more work is needed on the general approach agreed on the Digital Markets Act (DMA). Trilogue negotiations will start shortly thereafter for both the DMA and the…

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CCIA Cautions Risk of Unintended Consequences from European Parliament Amendments to the Digital Markets Act

Brussels, BELGIUM — Today the European Parliament’s Committee on the Internal Market and Consumer Protection voted on its amendments to the Digital Markets Act (DMA) proposal. The Computer & Communications Industry Association (CCIA Europe) appreciates MEPs’ hard work. However, we caution that some of the amendments go far beyond the existing evidence base for intervention,…

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Tech Industry Groups Urge Improving Adjustment Mechanisms to Ensure an Effective and Proportionate Digital Markets Act

Brussels, BELGIUM — The Computer & Communications Industry Association (CCIA Europe) and several other leading technology trade associations representing startups, SMEs, app developers, platform operators and other technology industry players today sent a joint letter to Members of the European Council on the Digital Markets Act (DMA). The letter urges lawmakers to strengthen and improve…

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Study Offers Reasons Why Government Technology and Procurement Practices Needs to Change

Washington — A study by market research firm Omdia released Monday explores reasons why most government departments rely on just one vendor for productivity software and why IT departments are choosing to select ease of management and end user familiarity with the tools at the expense of developing a best of breed approach that would…

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New Study Finds House, Senate Bills Would Have Blocked A Fifth Of Acquisitions

Washington — An economic analysis of the merger and acquisition restrictions in House and Senate legislation finds the provisions would have blocked a significant source of spending on tech startups and resulted in more of them failing. The study, “Irreplaceable Acquisitions: Proposed Platform Regulation and Venture Capital,”  looks at sources of spending on acquisitions of…

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Economic Study Estimates Cost of Online Platform and Marketplace Regulation at $300 Billion

Washington — A study by economists at NERA Economic Consulting estimates that U.S. House and Senate legislative proposals subjecting online platforms and marketplaces to common carrier, structural separation, and line of business restrictions would cost the economy approximately $300 billion. The study also finds that the proposals would impact at least 13 additional American companies…

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