The Big Story: As broadband subsidy program ramps up, lawmakers eye next steps.
The need for universal broadband was back in the spotlight this week as lawmakers discussed the impacts of the digital divide, especially during the pandemic. At a hearing Tuesday, the House Appropriations subcommittee on financial services and general government examined the impact a lack of affordable, reliable broadband has, especially on rural communities and communities of color.
The panel’s top Democrat, Rep. Mike Quigly (D-Ill.) called Congress’ previous efforts to boost funding for Internet access during the pandemic “just the beginning,” and pointed to “bipartisan agreement about the importance of ensuring universal broadband access” as well as a focus on the issue from the Biden administration. Also this week, the Federal Communications Commission announced that one million households have signed up for the recently-launched broadband subsidy program. Congress passed the $3.2 billion program as part of a larger stimulus package in December.
As we’ve stressed throughout the pandemic, the availability of reliable, affordable Internet access is critical to all consumers using the Internet for everything from remote work, to education, to telemedicine, and more. The need for reliable, affordable Internet access is especially clear for startups across the country that use the Internet to launch and grow new and innovative businesses, many of which have helped keep consumers connected during the pandemic.
Policy Roundup:
Challenge to U.S.-EU data transfers moves forward in Ireland. Late last week, an Irish court ruled against Facebook’s challenge of an order from the Irish Data Protection Commission that could halt the company’s data transfers from the EU to the U.S. The Irish Data Protection Commission’s order came after last summer’s ruling from the EU’s highest court to strike down Privacy Shield—a transatlantic data transfer agreement that allowed U.S. companies to store and process data of EU users in the U.S.—and open other transfer mechanisms to scrutiny, citing concerns about U.S. government surveillance. Privacy Shield was an especially useful tool for startups, which often attract EU users far before they can afford to store EU users’ data locally.
Amendment to Endless Frontier would address digital trade barriers. Senate Majority Leader Chuck Schumer and Senate Finance Committee Chair Ron Wyden on Wednesday introduced the Combating Oppressive and Manipulative Policies that Endanger Trade and Economic Security (COMPETES) Act as a part of the Senate’s larger package aimed at taking on China. The bill would enable the U.S. Trade Representative to take on unfair digital trade practices by identifying countries with and conducting investigations of discriminatory digital trade regimes.
Treasury eyes reporting requirements for $10k crypto transfers. The Treasury Department announced plans this week to require that any cryptocurrency transfer of more than $10,000 be reported to the Internal Revenue Service. The announcement came as part of a broader plan on tax compliance and noted that “cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion.”
Washington State Files First Case Under Anti-Patent Troll Law. Last week, Washington state’s Attorney General sued a patent assertion entity known as Landmark A, marking the first time a case has been brought under Washington’s Patent Troll Prevention Act. This 2015 law was passed to “crack down” on so-called patent trolls and prevent them from harassing, e.g., startups and small businesses. The present case alleges Landmark sent demand letters to numerous businesses—on the theory that basically any company operating a website infringes—and demanding $65,000 to avoid costly litigation. If successful, the AG’s case would bar Landmark from further bad faith assertions and require restitution payments to the targeted businesses.
Legislation to renew expired trade programs introduced. Senate Finance Committee Chair Ron Wyden introduced a bill this week that, among other things, would renew through 2027 the Generalized System of Preferences, a program eliminating tariffs on certain imports from developing countries that expired at the end of 2020. The bill would encourage countries to maintain open digital ecosystems and eliminate any digital trade barriers like data localization requirements. As Engine has long noted, restrictions on data flows increase costs for startups and reduce their ability to compete abroad.
Startup Roundup:
#StartupsEverywhere: Cambridge, Massachusetts. While working through her graduate studies, Anne Kim—Co-Founder and CEO of Secure AI Labs (SAIL)—discovered a significant obstacle to her research in her efforts to obtain patient data from hospitals. This led her to the concept of SAIL, a data management platform that focuses on the need for accessible yet secure medical data. We sat down with Kim to hear what brought her to develop the platform, her thoughts on how startups and policymakers can be more forward thinking about privacy policy, and how she thinks the government can provide startups a boost as a partner and customer.
Startup Policy Seminar Series: Access to Talent & Your Startup. Join Engine on June 9 at 4 p.m. ET where, together with an expert panel, we will explore the current landscape of workforce mobility & immigration public policy, particularly focusing on how these issues impact startups and how startups can get involved in these policy debates. The event will feature a discussion moderated by Engine’s Policy Manager, Jennifer Weinhart, and several expert panelists. You can RSVP here.
