Senator Michael Bennet (D-CO) has introduced legislation to create a new Federal Digital Platform Commission (FDPC), an idea that has been under discussion for several years, primarily as a complement to antitrust enforcement. Whether we need stronger competition policy tools is a legitimate subject for debate, but the Bennet bill goes way beyond that. The new agency would have broad authority to regulate virtually every aspect of digital platforms with the threat of fines of up to 15 percent of global revenue. It is a bad idea that would severely hamper innovation in this critical economic sector in which the U.S. has been a global leader.
Senator Bennet recognizes the U.S. technology leadership position, and that U.S. companies provide a plethora of new services that consumers and businesses value highly. Yet the bill seems to assume that U.S. success is unrelated to the light touch regulatory approach we have taken. He expresses concern that the failure of the U.S. to establish a digital platform regulatory regime will cede that role to other countries – presumably, Europe. But since none of the great tech companies have come out of Europe, it hardly seems that Europe is a good model for digital regulation.
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