House Commerce Committee subpanels plan hearings Dec. 1 and Dec. 9 on legislation to “hold Big Tech accountable,” Chairman Frank Pallone, D-N.J., announced Wednesday. The Communications Subcommittee scheduled a hearing Dec. 1 on Communications Decency Act Section 230 and how to “recalibrate the law in a way that better incentivizes responsible actions by tech companies.” The Consumer Protection Subcommittee will meet Dec. 9 on “an array of proposals to enhance transparency, promote online safety, and hold Big Tech accountable.” Legislation to be discussed will be announced the week before each hearing.
President Joe Biden signed the Secure Equipment Act (HR-3919), which requires the FCC to ban issuing new equipment licenses to companies the commission decides are a national security risk, the White House said. The Senate passed the measure in late October (see 2110290067). Commissioners approved an NPRM 4-0 in June proposing a similar ban (see 2106090063). Lead sponsor Rep. Anna Eshoo, D-Calif., and other sponsors jointly hailed Biden’s Thursday signing. “Now the FCC is prohibited from issuing licenses for any equipment made by companies that pose a threat to our national security,” Eshoo said Friday. Congress and the White House “sent a strong signal to the Chinese Communist Party that America is committed to protecting our telecommunications networks" and data security, said lead GOP co-sponsor House Minority Whip Steve Scalise of Louisiana. Senate companion S-1790 sponsors Ed Markey, D-Mass., and Marco Rubio, R-Fla., also welcomed enactment. House Commerce Committee ranking member Cathy McMorris Rodgers, R-Wash., praised the measure as “a major step towards securing America’s telecommunications infrastructure” against companies like “China state-backed Huawei and ZTE.”
Legislation introduced Friday would require large tech companies to prove their potential acquisitions of rivals aren’t anticompetitive. Senate Antitrust Subcommittee Chair Amy Klobuchar, D-Minn., and Sen. Tom Cotton, R-Ark., introduced the Platform Competition and Opportunity Act, as expected (see 2110250055). It would apply to companies with a market capitalization of $600 billion at enactment. The bill is a companion to legislation introduced by Democratic Caucus Chair Rep. Hakeem Jeffries, D-N.Y. (see 2106110070). Klobuchar previously introduced a bipartisan bill with Senate Judiciary Committee ranking member Chuck Grassley, R-Iowa, mirroring a House bill on self-preferencing. “With a bill like this in place, truly innovative ideas that are disruptive to the Big Tech status quo will have a chance to flourish,” said Public Knowledge Competition Policy Director Charlotte Slaimant about the latest bill. “The answer is to make clear that predatory behavior -- like Facebook’s acquisitions of Instagram and WhatsApp -- will no longer be tolerated,” said Public Citizen Competition Policy Advocate Alex Harman. “This legislation will do just that and is an important step towards reining in the power of these companies that believe they should be above the law.” Among the companies with $600 billion market cap are Microsoft, Apple, Alphabet, Amazon, Tesla, Meta, Nvidia and Taiwan Semiconductor Manufacturing.
A National Defense Authorization Act amendment introduced Thursday would require online marketplaces like Amazon to verify third-party sellers in an effort to combat fake and stolen goods (see 2111020061). Senate Judiciary Committee Chairman Dick Durbin, D-Ill., and Sen. Bill Cassidy, R-La., introduced the Inform Consumers Act (S-936) after holding a hearing Tuesday. It includes the latest text from a bill negotiated in the House. It “ensures a baseline level of transparency for online marketplaces -- like Amazon -- and will help promote responsible marketplace behavior,” said Durbin.
FCC Commissioners Brendan Carr and Nathan Simington and telecom-focused lawmakers hailed Senate passage of the Secure Equipment Act (HR-3919). The Senate approved the legislation by unanimous consent Thursday, sending it to President Joe Biden. The House passed it earlier in October (see 2110200066). HR-3919 and Senate companion S-1790 would ban the FCC from issuing new equipment licenses to companies the commission decides are a national security risk. Commissioners approved an NPRM 4-0 in June proposing a similar ban (see 2106090063). The bill “will help to ensure that insecure gear from companies like Huawei and ZTE can no longer be inserted into America’s communications networks,” Carr said. “We have already determined that this gear poses an unacceptable risk to our national security, so closing what I have called the ‘Huawei loophole’ is an appropriate action for us to take.” HR-3919 “does not complete the work of protecting our digital sovereignty,” Simington said. “Inadvertent flaws in wireless edge devices are as much a threat as intentionally created backdoors. The FCC must continue to engage with industry and other parts of government to identify and eliminate weaknesses that can be exploited by our adversaries.” Equipment made by “Huawei and ZTE, companies linked to the Chinese government, increases the vulnerabilities of our telecommunication systems,” said lead sponsor Rep. Anna Eshoo, D-Calif. The measure “forcefully signals to the Chinese Communist Party that America is committed to protecting the privacy and security of our citizens,” said lead GOP co-sponsor House Minority Whip Steve Scalise, La. S-1790 lead sponsors Sens. Ed Markey, D-Mass., and Marco Rubio, R-Fla., also praised passage.
The Senate Judiciary Committee reported DOJ Antitrust Division nominee Jonathan Kanter to the Senate floor Thursday by voice vote (see 2110210033). John Cornyn, R-Texas, was the sole no vote. He said he shares Kanter’s concerns about the tech industry’s influence over consumers but is troubled by Kanter potentially moving away from the consumer welfare standard. Cornyn said Kanter has expressed interest in “competitive objectives” outside the traditional scope of antitrust and using antitrust as a “political hammer.” Sen. Amy Klobuchar, D-Minn., noted support for Kanter from a bipartisan group of nine former Antitrust Division chiefs (see 2109250003), saying he has the experience for the job. The committee 13-9 reported Lucy Koh, nominated to be 9th U.S. Circuit Court of Appeals judge. Voting against Koh were GOP Sens. Cornyn; Josh Hawley, Mo.; Mike Lee, Utah; Ted Cruz, Texas; Ben Sasse, Neb.; Tom Cotton, Ark.; John Kennedy, La.; Thom Tillis, N.C.; and Marsha Blackburn, Tenn.
The Senate Judiciary Committee delayed a vote on confirming nominee Jonathan Kanter to lead DOJ’s Antitrust Division Thursday (see 2110080038). The committee traditionally holds items when they’re first scheduled on the agenda, said Chairman Dick Durbin, D-Ill.
Congress should support a bill that would deliver “long overdue” independent research on social media’s impact on child development, said House Health Subcommittee Chair Anna Eshoo, D-Calif., at a hearing Wednesday. Commerce Committee Chairman Frank Pallone, D-N.J., also drew attention to the measure, HR-2161. The Children and Media Research Advancement Act would authorize a National Institutes of Health research program on the effects of tech and media on infants, children and adolescents. There would be $15 million for research 2022-24, and $50 million for 2025-26. The bill was reintroduced in March by Sens. Ed Markey, D-Mass.; Ben Sasse, R-Neb.; Roy Blunt, R-Mo.; Brian Schatz, D-Hawaii; Susan Collins, R-Maine; and Michael Bennet, D-Colo.; and Reps. Jamie Raskin, D-Md.; Anthony Gonzalez, R-Ohio; and Lori Trahan, D-Mass. Microsoft, Amazon, Google, Apple, Facebook, Charter Communications and the Internet Association support the legislation. Social media companies can’t be trusted to “do the right thing” for youth, said Eshoo. The bill would stop tech companies from evading scrutiny about their impact on child development, she said.
Facebook should abandon revived plans to launch a digital currency (see 1910220059), Democrats wrote CEO Mark Zuckerberg Tuesday. Sens. Brian Schatz, Hawaii; Sherrod Brown, Ohio; Richard Blumenthal, Connecticut; Elizabeth Warren, Massachusetts; and Tina Smith, Minnesota, signed. Citing the recent controversy over internal research about teen mental health (see 2110050062), they asked Zuckerberg to abandon plans for its pilot digital wallet Novi, announced Tuesday, and to agree not to bring its digital currency Diem to the market. “Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient,” they wrote. A Novi spokesperson said the company looks forward to responding to the letter.
The House is to vote Tuesday under rules suspension on the Secure Equipment Act (HR-3919/S-1790) and three other telecom bills: the Information and Communication Technology Strategy Act (HR-4028), Open Radio Access Network Outreach Act (HR-4032) and Communications Security, Reliability and Interoperability Council Act (HR-4067). The House Commerce Committee advanced all four bills in July (see 2107210064).