Bill Overview
Title: American Innovation and Choice Online Act
Description: This bill prohibits certain large online platforms from engaging in specified acts, including giving preference to their own products on the platform, excluding or disadvantaging competing products from another business on the platform, or discriminating among similarly situated users. Further, a platform may not materially restrict or impede the capacity of a competing business user to access or interoperate with the same platform, operating system, or hardware or software features. The bill also restricts the platform's use of nonpublic data obtained from or generated on the platform and prohibits the platform from restricting access to platform data generated by the activity of a competing business user. The bill also provides additional restrictions related to installing or uninstalling software, search or ranking functionality, and retaliation for contact with law enforcement regarding actual or potential violations of law. The bill establishes affirmative defenses for the prohibited conduct. The Federal Trade Commission or the Department of Justice must designate whether an entity is a platform covered by the bill, and both must carry out enforcement activities. The bill also provides for civil penalties, injunctions, conflicts of interest, a private right of action, and the forfeit of profits for repeat offenders.
Sponsors: Rep. Cicilline, David N. [D-RI-1]
Target Audience
Population: Users of large online platforms
Estimated Size: 250000000
- Large online platforms such as Google, Amazon, Facebook, and Apple are directly affected because they are targeted by the regulation.
- Small and medium-sized businesses that use these platforms for sales and services will be impacted as the bill could provide them a fairer competitive environment.
- Consumers globally who use these platforms might experience changes in services and product recommendations.
- Global e-commerce users and enterprises could experience ripple effects due to changes in the operations of large online platforms.
Reasoning
- The policy impacts major online platforms; thus, interviews will be conducted with individuals who use these platforms, including direct users and businesses relying on them.
- A range of individuals will be selected, some impacted greatly and others not at all, to create a well-rounded picture of potential outcomes.
- Given the budget and target populations, the policy will reach out broadly but will concentrate impacts on SMEs and platform users.
- The estimated target population in the U.S. is 250 million, but not all will experience the same level of impact; assessments across high, medium, low, and none impacts will be distributed.
Simulated Interviews
Small Business Owner (San Francisco, CA)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 12/20
Statement of Opinion:
- I feel like big companies have too much control over who sees my products.
- The policy could help me compete more fairly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Software Developer (Boston, MA)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- The policy could level the playing field against big tech when it comes to our software.
- I'm cautiously optimistic, but enforcement will be key.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Tech Employee (Seattle, WA)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- The policy seems aimed at us, which could mean changes at work.
- I'm not sure how this will impact my day-to-day, but there could be layoffs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Entrepreneur (Austin, TX)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 11/20
Statement of Opinion:
- I hope this legislation encourages more fair play among platforms.
- While it's good for my businesses, there's potential for unintended consequences.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 10 | 6 |
College Student (New York, NY)
Age: 22 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 15/20
Statement of Opinion:
- I don't think it will change much for how I use these services.
- It could be a positive progression for fairness, but I'm not directly affected.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Digital Marketing Specialist (Miami, FL)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- The policy could help SMEs get more visibility.
- It might require adjusting strategies as platform algorithms change.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Retired (Phoenix, AZ)
Age: 65 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 18/20
Statement of Opinion:
- I'm somewhat skeptical about government regulations improving online experience.
- These large businesses seem to navigate any changes to their advantage.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Content Creator (Los Angeles, CA)
Age: 30 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- I hope this can open up new opportunities for content creators.
- If it limits the power of big platforms, it could help us, but need clarity on how.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
App Developer (Chicago, IL)
Age: 24 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- The bill could mean better access to platform functionality.
- I'm hopeful it'll reduce hurdles we face compared to bigger companies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Retired (Fairfield, IA)
Age: 78 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 20/20
Statement of Opinion:
- I don't think it'll change much for my use of the internet.
- As long as my online services continue to work, I don't foresee issues.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $500000000 (Low: $400000000, High: $600000000)
Year 2: $475000000 (Low: $375000000, High: $575000000)
Year 3: $450000000 (Low: $350000000, High: $550000000)
Year 5: $425000000 (Low: $325000000, High: $525000000)
Year 10: $400000000 (Low: $300000000, High: $500000000)
Year 100: $250000000 (Low: $150000000, High: $350000000)
Key Considerations
- The scope of the bill covers major online platforms, primarily large U.S. technology companies that have considerable market influence.
- The enforcement activities required by the FTC and DOJ will be crucial for the bill's effectiveness.
- Potential legal challenges from affected companies might delay the enforcement process.
- The policy could set a precedent influencing global digital marketplace regulations.