The Big Story: Digital trade provisions critical for startups. Speaker of the House Nancy Pelosi (D-Calif.) is reportedly pushing to have digital trade provisions that provide intermediary liability protections for startups removed from the United States-Mexico-Canada Agreement (USMCA). These protections are based on the U.S. legal framework that startups rely on to launch, grow, and compete with major Internet companies.
We pointed out in a recent blog post that these protections—modeled on Section 230 of the Communications Decency Act of 1996—simply ensure that companies of all sizes can compete in a globally competitive market without the fear of ruinous litigation when it comes to moderating, policing, and removing user-generated online content.
As we noted in comments submitted to the House Ways and Means Subcommittee on Trade following the panel’s November 20th hearing on U.S.-Japan trade agreements, “Cementing common-sense digital provisions with a basis in U.S. law would provide certainty to American startups seeking to expand their ventures globally without the fear of onerous, costly lawsuits and with legal, unambiguous certainty.”
Policy Roundup:
Senate panel considers privacy proposals. Members of the Senate Commerce Committee debated a variety of legislative proposals to better safeguard consumers’ online data during a committee hearing on Wednesday, including separate proposals from Chairman Roger Wicker (R-Miss.) and top Democrat Maria Cantwell (Wash.) that differ in state preemption and private right of action provisions. Engine remains concerned about the already wide variety of state laws and provisions that could allow "privacy trolls" to target startups.
Administration moves against France’s digital tax. The Trump administration proposed implementing tariffs as high as 100 percent against $2.4 billion in French imports in response to France’s new digital services tax that would apply a three percent tax on large tech companies. The recommendation of tariffs came from the office of the U.S. Trade Representative, which concluded in a report released earlier this week that France’s tax “discriminates against U.S. digital companies.”
FCC announces 5G fund amid broadband mapping concerns. The Federal Communications Commission announced plans to launch a new fund that would allocate $9 billion from the Universal Service Fund to spur the development of 5G wireless service across rural America over the next 10 years. The new plan would replace the FCC’s previous 4G-focused program, which was stymied by concerns that coverage data submitted by wireless carriers was not accurate—a claim the agency verified in a report released this week.
More on mapping. During a House Energy and Commerce Subcommittee on Communications FCC oversight hearing this week, lawmakers criticized the agency for its handling of broadband mapping data.
EU blocks stablecoins until ‘risks’ can be assessed. European Union finance ministers released a joint statement saying that stablecoins—digital currencies backed by fiat currencies or other securities—should not be allowed in the bloc “until the legal, regulatory and oversight challenges and risks have been adequately identified and addressed.”
Senate panel plans encryption hearing for next week. The Senate Judiciary Committee is planning to hold a hearing on “encryption and lawful access” at 10 a.m. on Tuesday, December 10th. As we previously explained, weakening encryption protocols would adversely impact startups that rely on strong security measures to safeguard user data and set themselves apart from their larger competitors.
Lunch panel on the copyright rules governing sharing online. Join Engine, the Computer and Communications Industry Association, and Internet Association on Wednesday, December 11th, at noon for a lunch panel about the complex copyright rules that govern (and permit) sharing online. We will discuss the ways those rules impact platforms and users, as well as the impact that proposed changes could have on the Internet ecosystem. Learn more and RSVP here.
Startup Roundup:
#StartupsEverywhere: New Haven, Conn. New Haven, the home of Yale University, is quickly emerging as a hub of entrepreneurial activity in Connecticut. One of the organizations spurring early-stage startup development in The Elm City is Collab, a community-led accelerator that works to build up the confidence, skills, and resources available to emerging founders.
