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, unfairly limiting the availability on the platform of competing products from another business, or discriminating in the application or enforcement of the platform's terms of service 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 and 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, and the forfeit of profits for repeat offenders.
Sponsors: Sen. Klobuchar, Amy [D-MN]
Target Audience
Population: Users of large online platforms, businesses using these platforms, and global consumers
Estimated Size: 250000000
- The bill targets large online platforms, which typically operate globally and have millions or even billions of users.
- The impacted population includes users of large online platforms that the bill seeks to regulate.
- The policies will more directly affect businesses that rely on these platforms to reach consumers, especially those that compete with the platform's own products.
- Consumers may see changes in how products are recommended or accessible, potentially benefiting from fairer competition and improved choice.
- Businesses that could be adversely affected are those that currently enjoy preferential treatment on these major platforms.
- Global users of such platforms may see indirect benefits from increased competition and influence on market behavior.
Reasoning
- The population most impacted by the policy includes a broad spectrum of individuals and businesses that either use or compete with large online platforms.
- Users of large platforms are numerous; thus, their individual impact will vary but can include changes in service experience and product accessibility.
- Businesses that compete with platform-hosted products may see significant benefits in reduced competitive bias.
- The budget limitations suggest a moderate reach for enforcing compliance, focusing initially on high-profile non-compliance cases.
- Subsequent benefits to consumers, while widespread, perhaps indirectly, should positively reflect in self-reported wellbeing scores over time.
Simulated Interviews
Small Business Owner (San Francisco, CA)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I often feel that my products get sidelined by those owned by the platforms themselves.
- This law could level the playing field for small businesses like mine.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 8 | 3 |
Tech Industry Executive (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Compliance could increase operational costs, which might affect budgets and employment.
- However, it might open opportunities in newer balanced markets.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 6 |
Marketing Specialist (New York, NY)
Age: 28 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- This shift might require a reevaluation of strategies to align with new rules.
- If executed well, it can benefit both clients and consumers.
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 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Logistics Manager (Chicago, IL)
Age: 38 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- Fairer practices might make market entry tougher for new partners but could help mitigate risks of overreliance on few large players.
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 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Independent Author (Miami, FL)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 9/20
Statement of Opinion:
- Changes in ranking and search functionalities could modify how my books are discovered.
- If these changes benefit unknown authors like me, it would be great.
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 | 8 | 4 |
| Year 20 | 7 | 4 |
Consumer Advocate (Seattle, WA)
Age: 31 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- This bill could be a significant step toward consumer empowerment and market fairness.
- I expect a gradual shift in consumer trust and engagement positively.
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 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Data Analyst (Columbus, OH)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- The policy would require adaptation in data strategy but might uncover new and realistic market insights.
- Potential to level the playing field for clients.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Content Creator (Los Angeles, CA)
Age: 27 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- The new regulations may either adversely affect or increase visibility depending on how platforms react.
- Curious about potential benefits in diversity of content to users.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Retired (Boston, MA)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 15/20
Statement of Opinion:
- Regulatory changes could enhance the shopping experience by providing more choices without platform bias.
- Hopeful for improved product discovery processes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Freelance Software Developer (Houston, TX)
Age: 36 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- Ease of integration with multiple platforms might improve with standardized policies.
- Concerns about changes impacting software compatibility and workloads.
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 | 4 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $65000000)
Year 2: $55000000 (Low: $45000000, High: $70000000)
Year 3: $60000000 (Low: $50000000, High: $75000000)
Year 5: $70000000 (Low: $60000000, High: $85000000)
Year 10: $85000000 (Low: $75000000, High: $95000000)
Year 100: $100000000 (Low: $90000000, High: $120000000)
Key Considerations
- Compliance costs for large online platforms may be passed on to consumers or result in reduced investment.
- Shifts in market dynamics could alter competitive balances across various industries.
- Potential legal challenges or lobbying may alter the scope or effectiveness of enforcement measures over time.