The American Innovation and Choice Online Act targets large tech platforms that the bill defines as "systemically important platforms." These are online platforms controlled by companies with at least $175 billion in average annual revenue that reach 34 percent of the U.S. population over age 12 or subscriber households. The bill makes it unlawful for these platforms to engage in seven categories of anticompetitive conduct, including favoring their own products over competitors, restricting business users' access to platform features or data, tying services together, manipulating search rankings, or retaliating against users who report violations to authorities.
The legislation allows the Federal Trade Commission, the Department of Justice, and state attorneys general to enforce these rules through civil actions in federal court. Violations can result in civil penalties ranging from 1 to 10 percent of the company's total U.S. revenue, injunctive relief, and in cases of repeated violations, forfeiture of executive compensation. The bill includes affirmative defenses for conduct necessary to comply with law, protect security and privacy, prevent fraud, or avoid transferring data to foreign adversaries. Cases must be expedited in court with a goal of final judgment within one year. The law takes effect one year after enactment, and the FTC must adjust the revenue threshold annually based on gross national product changes.
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