The Big Story: Broadband access in the time of COVID-19. House Democrats this week introduced the HEROES Act, their proposed $3 trillion coronavirus relief package that includes a dramatic expansion of pandemic-related broadband assistance to help close the digital divide. The inclusion of broadband funding in the proposed relief package comes as policymakers in recent weeks have grown more vocal about the importance of reliable Internet connectivity during the COVID-19 pandemic.
The Democrats’ “phase four” relief package would set aside $4 billion to provide assistance to low-income, furloughed, and laid off Americans who are struggling to pay their Internet bills amidst the pandemic. The bill would also allocate another $1.5 billion to the Federal Communications Commission’s E-Rate Program to allow schools and libraries to purchase hot spots and other WiFi-connected devices that can be used to support distance learning. In a separate move, Democrats in both chambers of Congress also introduced legislation that would establish a $1 billion fund at the National Telecommunications and Information Administration to help ensure that college students have access to high-speed Internet services as they complete their coursework from home.
During a hearing on Wednesday about the state of broadband during the COVID-19 pandemic, lawmakers stressed the importance of keeping both small businesses and consumers connected during a time of increased reliance on digital services. Policymakers and industry witnesses also called for the Federal Communications Commission to quickly move forward with broadband expansion efforts—such as the planned Rural Digital Opportunity Fund and the agency’s $9 billion 5G fund—despite the lack of accurate coverage data in order to supercharge ongoing connectivity efforts. As we’ve previously noted, startups and consumers are relying more than ever before on digital services to comply with stay-at-home orders. That's why it's so crucial for lawmakers and federal officials to take immediate steps to narrow the nation’s digital divide, and ensure that all Americans have access to reliable Internet services.
Policy Roundup:
House, Senate Democrats introduce COVID-19 privacy proposal. A group of House and Senate Democrats introduced privacy legislation, known as the Public Health Emergency Privacy Act, that would protect consumers’ data privacy amidst the coronavirus outbreak by requiring that companies delete collected health data within 60 days of the public health crisis coming to an end. The bill comes after a group of Senate Republicans introduced the COVID-19 Consumer Data Protection Act last week.
Senate passes FISA renewal without restricting warrantless Internet history searches. The Senate voted yesterday to approve the USA Freedom Reauthorization Act, legislation that would restore the federal government’s lapsed surveillance powers while also expanding legal protections for certain groups of individuals targeted by federal surveillance efforts. Senators rejected an amendment from Sens. Ron Wyden (D-Ore.) and Steve Daines (R-Mont.) that would have prevented law enforcement officials from obtaining users’ Internet browsing and search histories without a warrant.
GOP members release legislative package to boost U.S. tech firms. Leading Republican lawmakers on the House Energy and Commerce Committee introduced a package of 15 bills to support U.S. tech firms against increasing Chinese competition. The raft of legislation would in part promote the use of blockchain technologies, assess the use of artificial intelligence to remove harmful online content, and would require companies to disclose whether or not their apps were developed in China.
France approves bill requiring near-immediate removal of flagged content. French policymakers adopted legislation that would force Internet companies to remove flagged child abuse materials and terrorist propaganda from their websites within one hour, or risk being fined as much as four percent of their global revenues. The bill would also require online firms to remove flagged hate speech from their sites within 24 hours, or face similar punitive measures.
Push for a merger moratorium during the pandemic continues. Several Democratic lawmakers called for the U.S. Federal Reserve and the Treasury Department to temporarily block mergers between large companies that received any financial assistance from coronavirus relief packages. Earlier this week, a group of Republicans on the House Judiciary’s antitrust subcommittee also wrote to the Fed and the Treasury Department to express their concerns that a merger moratorium of any kind “would reduce the flexibility that American businesses have in deciding how to best access capital.” Makan Delrahim, the Justice Department’s top antitrust enforcer, told CNBC that it would be “misguided” for lawmakers to temporarily suspend large mergers during the pandemic.
Facebook settles with content moderators who developed PTSD. Facebook agreed to a $52 million settlement with current and former content moderators who sued the social media company over mental health concerns that developed from policing harmful and violent content uploaded to the social media platform.
Bipartisan proposal would clarify affiliation rule confusion for startups. Reps. Anna Eshoo (D-Calif.) and Cathy McMorris Rodgers (R-Wash.) introduced bipartisan legislation that would waive the U.S. Small Business Administration’s affiliation rule for venture capital-backed startups that have no majority shareholder and are seeking emergency Paycheck Protection Program loans. As we’ve previously noted, many VC-backed firms are excluded from receiving PPP loans because the rule requires that startups and other small businesses count the employees of their “affiliates” as their own employees.
Telegram gives up on blockchain network after SEC dispute. Messaging app Telegram announced that it has abandoned plans to launch its blockchain project, the Telegram Open Network, after a drawn out dispute with the U.S.. Securities and Exchange Commission. The SEC filed an emergency injunction last year to halt Telegram’s $1.7 billion digital coin offering, which would have supported the company’s blockchain network, on the grounds that it was an illegal securities offering.
Startup Roundup:
#StartupsEverywhere: Greenville, South Carolina. As local media outlets in the United States struggle with declining revenues, a South Carolina-based startup is working to engage readers across the Southeast by creating localized content to spur greater participation and involvement in local communities.
Looking back on a modified National Small Business Week. Although the U.S. Small Business Administration postponed last week’s 57th annual National Small Business Week, that didn’t stop communities all across the country from celebrating the importance of our small businesses. We took a look back at the policymakers who were the most vocal in their support for startups and small businesses amidst the ongoing pandemic.
