Issue:
U.S. policymakers continue to explore policy solutions to address wide-ranging concerns around the power and influence of large technology companies. The Edelman Trust Barometer survey supports this concern with only moderate trust (57%) in the U.S. technology sector. As part of the overarching narrative, S. 2992 specifically looks at the competition behavior of these major firms and represents one step towards addressing some of the broader technology policy concerns.
What does it mean:
S. 2992 passed with a 16-6 vote. While there was majority support for bill passage, some Senators voiced concerns around the legislative process, bill language being too broad, unintended consequences to third parties, and data security, among others. Bloomberg reports:
“One of the amendments the committee adopted would address how data is shared with China, companies controlled by China, or other foreign adversaries. Another amendment added criteria to the covered platform definition to include companies that have $550 billion in net annual sales or 1 billion worldwide users, which could capture platforms like Bytedance Ltd.’s TikTok.”
As a next step, House and Senate leaders need to determine if these bills are ready for floor action. In the House, there remains significant opposition – Ranking member Jim Jordan (R-OH) opposed the House version, HR 3816. Many Democrats also expressed concerns. As technology companies step up their education efforts around the legislation, the road ahead will become more difficult for supporters of the legislation.
Why it matters:
While there is broad support by Americans for regulating large technology companies, the question has been how. S. 2992 moves the conversation towards potential policy action and symbolizes rare bipartisan agreement on Capitol Hill around regulating large technology companies. But there is a careful balancing act between supporting innovation and protecting U.S. business interests while making sure that there’s fair competition in the marketplace.