What A Republicancontrolled House Might Mean For Tech: Plenty Of Handwringing Over Section 230 Liability Shield
Goodbye technology regulation bill. Hello article 230 debate.
If Democrats retain control of the Senate after the midterms, but Republicans fight for control of the House of Representatives, those could be two big moves for tech. As a result, Beltway insiders continue to expect a wave of Section 230 hearings protecting online speech, and House Judiciary Committee Chairman Jim Jordan of Ohio has reportedly pointed the finger at technology executives.
Regardless of the outcome of the midterms, the Biden administration thinks differently. "There is bipartisan support for the anti-technology bill and there is no reason Congress can't act before the end of the year," White House deputy press secretary Emily Simons said Wednesday.
Still, his prediction needs to be tested in practice, say industry insiders, after more than a year of promising near-universal votes on tech legislation with little to come.
Alpha Capital analyst Robert Kaminsky predicted that Republicans would focus on censorship and political speech issues, "creating an equal and opposite response from Democrats who want to combat online misinformation," he told MarketWatch.
"This will not result in new legislation being passed," said Kaminsky, who correctly predicted that Democratic administrations in recent years lacked real technical control because the bills were broadly worded and had no legislative priority. "Republicans will continue to have some interest in antitrust legislation, but we don't see it gaining support from party leaders."
Kaminsky said simple math and a blanket approach to technology legislation make it virtually impossible to take action amid this year's debacle in Congress. He said Congress has less than 25 legislative days to act on the appropriations bills, the NDAA, health care and possibly tax extensions and judge confirmations.
Congress may also lose its appetite for enforcement, as big tech companies cut jobs (Facebook parent Meta Platforms Inc., Snap Inc. and Microsoft Corp.) or cut jobs (Apple Inc. and Amazon.com Inc.) or cut them. Employment compensation (Google Alphabet Inc.)
An alarming 65% of aides don't think the legislation will pass this year, and just 12% of Senate staff are optimistic, according to a Punchbowl poll.
republican deputy. Kevin McCarthy of California, who is behind the Speaker of the House, presented a limited technology agenda. “More privacy and data protection protections, equipping parents with more tools to keep their children safe online and preventing companies from undermining policies. people."
The focus is on Section 230 of the Communications Decency Act, which mainly protects technology platforms from liability for user postings. Expect tech executives to return to Capitol Hill, where conservatives question them about right-wing censorship.
For more than two years, Democrats, with the help of some key Republicans, have been working hard to rein in Big Tech after years of hearings on Capitol Hill with executives from Meta, Google, Apple, Amazon and Twitter Inc. then
"There are complications in technology legislation, even with unified democratic control of the government," Kaminsky told MarketWatch. "In a Republican Congress, we see the impasse change shape, but we don't expect it to come close to breaking."
By contrast, there may be little hope in the Senate, where Democrats hold a 50-49 majority and could lead the Georgia Senate runoff on December 6. Under the Democratic-controlled Senate, the original Democratic-led bills could be reintroduced and signed into law after they were defeated during last session's hectic legislative agenda on infrastructure, US aid programs, change climate change and the CHIPS Act.
"One of the lessons from midterm voters is that they want a bipartisan commitment, to show that something can be done. Maybe it's technology," Ed Mills, an analyst at Raymond James, told MarketWatch.
Sen. Amy Klobuchar, D-Minnesota, co-sponsored the antitrust bill with the Republican senator. Iowa's Chuck Grassley cosponsored the US Internet Choice and Innovation Act, which made its way almost entirely to the full Senate this year. The bill prohibits tech giants from using their enormous bargaining power to promote their own products or services.
If Klobuchar remains chairman of the Senate Judiciary Committee's antitrust subcommittee, his bill will get "another chance," Mills said, noting his interest in the issue (his book on antitrust enforcement is due to be published in 2021) and his presidential aspirations. "He needs a special presentation and it works for his brand as a populist from Minnesota," Mills said. Grassley is now the top Republican on the bench.
Mills is awaiting the senator's energy authorization bill. West Virginia Democrat Joe Manchin and the tough China bill will be top priorities for the next session of Congress next year.
