Digest

Startup News Digest 07/31/20

Startup News Digest 07/31/20

The Big Story: Messy ‘Big Tech’ hearing fails to address startup competition. Big tech CEOs were in the hot seat this week during a House antitrust hearing ostensibly about anti-competitive practices. Instead, however, lawmakers used the opportunity to air a variety of grievances against large tech firms without offering a coherent plan for policymaking that could benefit the U.S. startup ecosystem. While some of the members of the House Judiciary Antitrust Subcommittee used Wednesday’s hearing with the CEOs of Amazon, Apple, Google, and Facebook to address startup concerns, the hearing clearly demonstrated that policymakers need to rethink their approach to competition policy by listening to the concerns of the entrepreneurial community if they truly want to support startup growth and innovation.

Section 230 back in the spotlight

Section 230 back in the spotlight

TLDR: The Trump administration and policymakers are putting growing pressure on a bedrock Internet law that allows companies of all sizes to host and moderate user-generated content. Startups depend on this framework—known as Section 230 of the Communications Decency Act—to grow without the fear of being sued into bankruptcy over the user-generated content they host and moderate. Weakening this law would have a disastrous effect on the Internet ecosystem.

Startup News Digest 07/24/20

Startup News Digest 07/24/20

The Big Story: In order to promote tech competition, Congress needs to hear from startups. While a planned House antitrust panel next week featuring the CEOs of Amazon, Apple, Google, and Facebook has reportedly been postponed, the startup community is still paying close attention to ongoing congressional discussions about allegations of anti-competitive practices by the country’s largest tech firms. Recent history has shown that efforts to combat the perceived dominance of a few tech firms often have counterproductive outcomes, and policymakers need to factor the U.S. startup community into their work moving forward.

Startups Stand the Most to Lose after Privacy Shield Rollback

Startups Stand the Most to Lose after Privacy Shield Rollback

TLDR: Europe’s top court last week struck down Privacy Shield, a data transfer pact between the European Union and the United States that allowed U.S. companies to process and store European users’ data in America. The decision, which could have an outsized impact on U.S. startups, stems from U.S. government surveillance programs that European courts have repeatedly found issues with—especially in the wake of the disclosures from former National Security Agency contractor Edward Snowden in 2013. Without the U.S. scaling back its sweeping surveillance programs, however, it’s unlikely that the EU and U.S. will be able to agree on a new framework to replace Privacy Shield—something that growing startups need to reach potential users across Europe.

Startup News Digest 07/17/20

Startup News Digest 07/17/20

The Big Story: EU court strikes down transatlantic data transfer pact. The Court of Justice of the European Union this week struck down Privacy Shield, a transatlantic agreement that lets U.S. companies process and store European users’ data in the U.S. The ruling creates uncertainty for many U.S. and EU companies by jeopardizing the flow of data between Europe and the United States. The case, known as “Schrems II,” evolved out of Austrian privacy activist Max Schrems’ 2013 lawsuit following the revelations about the U.S. government’s surveillance programs by NSA whistleblower Edward Snowden.

Support Entrepreneurship by Participating in Congressional Startup Day

Support Entrepreneurship by Participating in Congressional Startup Day

TLDR: We’re now a month out from Congressional Startup Day, an event highlighting the importance of startup activity across the country. This annual event connects members of Congress with startups in their states and districts to learn more about the successes and challenges of being an entrepreneur. With the coronavirus pandemic having an outsized impact on U.S. startups, Congressional Startup Day serves as a timely opportunity for members to learn more about how they can support and highlight the work of their local entrepreneurs.

Startup News Digest 07/10/20

Startup News Digest 07/10/20

The Big Story: Startup community voices concerns about suspension of H-1B visas. U.S. startups are asking the Trump administration to reconsider a recent decision that will limit access to high-skilled talent amid the coronavirus pandemic. In a new letter, Engine and 118 startups, entrepreneurial organizations, and other companies—including Pinterest, Postmates, Reddit, and Twitter—are asking President Donald Trump to reconsider his suspension of work visas to high-skilled foreign workers, including those issued under the H-1B visa program. The letter comes after the president signed an executive order last week temporarily halting the issuance of work visas for foreign workers through the end of the year.

Next Coronavirus Relief Package Should Address Startup Concerns

Next Coronavirus Relief Package Should Address Startup Concerns

TLDR: When Congress returns from recess later this month, policymakers must ensure that they are effectively supporting startups in their fourth coronavirus relief package. In order to protect our nation’s startup ecosystem, however, Congress needs to look beyond currently available small business loan programs and examine other policy proposals that will enable startups and entrepreneurs to survive the pandemic’s economic fallout.

Startup News Digest 07/02/20

Startup News Digest 07/02/20

The Big Story: Congress extends small business loan program, but startups still need relief. Congress this week extended the deadline for startups and small businesses to apply for emergency funding from the Paycheck Protection Program (PPP), just hours before the loan program was set to expire. Under the measure, the U.S. Small Business Administration can continue to approve and offer PPP loans until August 8th to startups and small businesses that have been financially harmed by the coronavirus pandemic.

Startups Need Clarity When it Comes to Digital Currencies

Startups Need Clarity When it Comes to Digital Currencies

TLDR: Telegram paid $18.5 million and returned the proceeds of its coin offering back to investors as part of a settlement with the U.S. Securities and Exchange Commission. The agency sued the firm last year for raising $1.7 billion through an initial coin offering to fund the development of its blockchain project, known as the Telegram Open Network. The settlement comes as U.S. cryptocurrency firms continue to seek regulatory certainty for the industry, including clear guidelines for digital coin offerings.

Startup News Digest 06/26/20

Startup News Digest 06/26/20

The Big Story: Congress increases pressure on vital Internet law. Policymakers are ramping up attacks on Section 230 of the Communications Decency Act, the 1996 law that has allowed startups that host user content to thrive. While this law provides online companies of all sizes with the ability to moderate users’ content without being held liable for users’ speech, the latest round of attacks on Section 230 have been largely framed around Internet companies’ content moderation practices—a difficult, time consuming, and expensive task for any online platform.

Patchwork of Digital Services Taxes Threatens U.S. Startups

Patchwork of Digital Services Taxes Threatens U.S. Startups

TLDR: Federal officials are sending conflicting messages about their continued participation in global talks about the creation of a framework for digital services taxes (DSTs). While many of these taxes are targeted at large Internet companies, there are concerns that the startup community will be harmed by the trickle-down effect of increased costs for services and products to offset the taxes.

Startup News Digest 06/19/20

Startup News Digest 06/19/20

The Big Story: DOJ proposes changes to bedrock Internet law. The Department of Justice this week released a set of proposals for reforming a bedrock Internet law, a move that would make it more difficult and costly for Internet companies to host users’ content. The announcement comes as some lawmakers and federal officials have called for legislation to scale back Section 230 of the Communications Decency Act, which provides Internet companies of all sizes with the ability to moderate user content without being held liable for what they do or do not take down from their sites.

COVID-19, User Data, and the Need for a Federal Privacy Law

COVID-19, User Data, and the Need for a Federal Privacy Law

TLDR: Protecting the collection and use of consumers’ personal information continues to be at the top of mind for lawmakers, with new efforts in Congress looking to address the use of personal information in contact tracing apps amid the coronavirus pandemic, and unnecessarily tying the use of targeted online ads to an unrelated intermediary liability law. 

Startup News Digest 06/12/20

Startup News Digest 06/12/20

The Big Story: Treasury pushes for ‘much more targeted’ small business relief. Treasury Secretary Steven Mnuchin told the Senate Small Business Committee on Wednesday that the Trump administration is open to including a new round of Paycheck Protection Program (PPP) loans in the next coronavirus relief package, although he said that any future funding “needs to be much more targeted to the industries and small businesses having the most trouble going forward.” Mnuchin added that he is loosening the program’s existing rules in order to ensure that most of the small businesses receiving PPP loans can receive at least some loan forgiveness.

Online Content Moderation in the Hot Seat

Online Content Moderation in the Hot Seat

TLDR: Amid the coronavirus pandemic and critical ongoing conversations about race-based inequalities and injustices, Americans are increasingly turning to the Internet to learn, share, and stay informed. That's shining a brighter light on the ways in which Internet platforms handle all kinds of content—including misinformation, violent speech, and alleged infringement from the country's highest office.

Putting Tech Policy Aside to Address Systemic Inequalities 

Putting Tech Policy Aside to Address Systemic Inequalities 

In light of recent nationwide protests over police brutality and systemic racism, we’re putting our normal newsletter on hold this week in order to focus on organizations working to address those issues. Technology policy has a role to play in making sure people can stay connected and informed, and the tech industry has a long road ahead in addressing its own systemic inequality. But we’re spending this time listening to and highlighting organizations that have been working to address these issues on a larger scale, and we encourage you to do the same.

Startup News Digest 05/29/20

Startup News Digest 05/29/20

The Big Story: White House executive order threatens bedrock Internet law. President Donald Trump signed an executive order yesterday targeting “censorship” by online companies, a dangerous and misguided move that threatens to undermine the bedrock law that has allowed Internet platforms of all sizes to grow. The directive came after Twitter added fact-checking labels to several of President Trump’s tweets about mail-in ballots earlier this week. 

DMCA’s Safe Harbor Provisions Allow Startups to Grow and Thrive 

DMCA’s Safe Harbor Provisions Allow Startups to Grow and Thrive 

TLDR: The U.S. Copyright Office released a long-anticipated report last week which found that the system for resolving claims of online infringement should be updated. While the agency said that it was not recommending any wholesale changes to the current process, it has advocated for updates that would substantially alter the framework for startups that host user-generated content. With more Americans than ever before relying on digital services and online resources to create and share content during the pandemic, it’s critical for lawmakers and federal officials to carefully balance any changes to the law that could have an outsized impact on startups and their users.

Startup News Digest 05/22/20

Startup News Digest 05/22/20

The Big Story: Congress working to clarify small business loan program. The U.S. Senate this week tried to double the amount of time that recipients of Paycheck Protection Program loans have to spend the emergency funding, even as House Democrats plan to advance legislation next week that would change accessibility requirements and allow PPP loans to be used over an even longer 24-week timeframe.