The U.S. Senate may soon consider the misnamed “American Innovation and Choice Online Act” (S. 2992). Like most bills (think of the “Affordable Care Act”) the effect of this legislation would be the opposite of its Orwellian title. If S. 2992 became law, it would reduce online innovation and consumer choice but dramatically expand the federal government’s control over online commerce.
For example, the bill forbids “big tech” companies (e.g., Facebook, Google, Amazon) from “preferencing,” meaning they would be banned from using their website to promote their own products over similar products by other companies. If the law applied to brick-and-mortar stores federal agents could go into Wal-Mart to make sure Sam’s Cola is not more easily accessible to customers than Coke or Pepsi. The bill would also give government agents authority to regulate how tech companies deal with third-party vendors who use their platforms.
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