What A Republicancontrolled House Could Mean For Silicon Valley
Washington Business CNN
If Republicans take control of the House after the midterms, tech giants like Amazon, Google and Meta, which have been on the Democratic scene for the past few years, are expected to do so soon. a very different, but no less hostile, political climate in Washington.
In this Democratic-led Congress, tech executives have appeared before lawmakers to testify about everything from their companies' market dominance to the impact of social media on teen mental health. Democrats have criticized online platforms for cracking down on hate speech and white nationalism while pushing legislation that could significantly affect the business models of big tech companies.
In a deadlocked session, Democratic lawmakers may renew their push to pass technology-focused antitrust legislation that the industry's biggest players have spent millions lobbying for.
According to political scientists, the Republicans are unlikely to let up on the pressure. But the shift in power in the House of Representatives is likely to mean a renewed focus on some political priorities, notably accusations of anti-conservative bias on social media, and perhaps also more attention on China and its national security risks.
Here's what the midterm results could mean for Big Tech and the need to fix them.
In general, tech companies may face more political noise in the Republican House, but potentially less political risk.
"Republic's success will benefit tech giants like Google and Apple," said Paul Gallant, an industry analyst at Cowen Inc. The companies have clashed for years.
Expect more of the uncomfortable ritual questioning that has made tech executives and their aides commonplace in Washington, said an industry official who asked not to be named to speak more freely.
“I think the content moderation debate will be about not only how companies make decisions on their platforms, but also how they interact with the Biden administration,” the official predicted. “The focus will be on: 'Are you very happy and are your content moderation policies guided by the feedback you receive from the Biden administration?'
One company that could get a reprieve is Twitter, whose new owner, Elon Musk, received cheers from conservatives for proposing to restore former President Donald Trump's banned Twitter account, among other things, and using his account to support the Republican vote in the elections. elections. 2022 midterm elections.
The hearings could lead to broader proposals to repeal Section 230 of the Communications Decency Act, a federal law that gives technology platforms broad latitude to moderate online content as they see fit.
In the past, Democrats have pushed for cuts to Section 230, exposing tech platforms to more lawsuits for not being more aggressive in cracking down on hate speech and extremist content. Republicans have called for the platform to be held accountable over allegations that the social media site unfairly stifles conservative speech.
Previous legislative proposals to restrict Section 230 have generally faced constitutional challenges or a lack of bipartisan support, and those obstacles continue. But some digital rights advocates who have championed Section 230 are taking nothing for granted, saying that if they squint, they still see a path to legislation that could limit the law.
“What worries me the most in the next Congress is the nasty Section 230 bill called 'protect children' or 'stop opioid sales' or whatever. This seems like a no-brainer, but it can have far-reaching consequences. negative consequences,' which can inadvertently lead to the suppression of the most conservative discourse, no less,” said Evan Greer, deputy director of the Fight for Future Digital Privacy Group.
Given President Joe Biden's criticism of Section 230, a position the White House reaffirmed in September, he might even be willing to sign that hypothetical bill into law. But it's too soon to consider that scenario, other analysts say, pointing to the Supreme Court, not Congress, as the centerpiece of Section 230.
There are two high-profile cases in court that may significantly affect the reach of the law. The cases center on whether the technology platforms can be prosecuted under federal antiterrorism laws; if a court decides they can, it will effectively mean a significant reduction in section 230 protections. And it could create opportunities for others to continue to break the law.
"Republicans in Congress certainly have their views on content moderation, but the most important thing to watch is what the Supreme Court does," said Andy Holatay, executive vice president of the US Government Affairs Council group. technology defense. . "It will lead to either an opportunity or a consensus for Congress to move forward."
Both parties are tough on China, but hope the Republicans will make it a mainstay of their platform. Initially, the Republicans may have tried to create a new special committee focused on China and its impact on US supply chains, an industry official said.
The new committee will likely look at China's economic influence in the United States and the national security risks it could pose, from China's dominance of the rare earth mineral market to agricultural products, the manager said.
And while Republicans are likely to further police China-linked companies, including TikTok, they will also have a significant impact on the semiconductor industry as they explore other ways to limit China's access to the technology.
"Republican revenues won't be much of an advantage for chip and device makers if the Chinese hawks get a hold of them," Gallant said.
In a subsequent analyst note to investors, Gallant added: "For some China hawks, possibly including Secretary of State Mike McCall, Biden may not go far enough," suggesting that Republicans may try to impose even greater restrictions. to Chinese exports through legislation.
Some congressional watchers told CNN that support for federal privacy legislation remains bipartisan and remains one of the few areas lawmakers can make progress in the next Congress.
The bill, known as the US Data Protection and Privacy Act, would contain the nation's first consumer data privacy mandate in US law. It was approved by a key House committee this year, and political analysts say it will have more room for change next year.
The issue of privacy is becoming more important to consumers by the day, Greer said, after the Supreme Court struck down Roe v. Wade has made the security of location data, browsing history, and other personal information a serious security concern.
"Fighting for high-tech policies like data privacy, antitrust, and content moderation has serious implications for fundamental issues like abortion access, voting rights, racial justice, and LGBTQ+ protections," Greer said.
