AICOA’s heavy-handed approach would harm consumers, stifle innovation, and degrade security and privacy

Senators Chuck Grassley (R-Iowa) and Amy Klobuchar (D-Minn.) re-introduced a modified version of the American Innovation and Choice Online Act (AICOA), which introduces new regulations on digital platforms, including provisions banning so-called self preferencing.

Director of CEI’s Center for Technology and Innovation Jessica Melugin said:

“The American Innovation and Choice Online Act (AICOA) would hurt consumers, introduce degraded security and privacy for users, and diminish the ability of U.S. tech companies to innovate. The American digital platform model is one of the most successful business innovations of all time. The European Union’s AICOA-like Digital Markets Act (DMA) has produced nearly the dead opposite results across the Atlantic. American policymakers should take this as a cautionary tale. Rather than adopting DMA-like legislation, the U.S. should pursue policies that continue to promote valuable services for consumers and maintain the country’s global leadership in tech.”  

CEI research fellow Alex Reinauer said:

“The latest iteration of the American Innovation and Choice Online Act (AICOA) doubles down on a guilty until proven innocent approach to antitrust enforcement. AICOA replaces established law and fact intensive economic analysis with arbitrary thresholds and presumptions of harm where none exist. Despite five years of discussion and revision since its first introduction, AICOA remains rotten. Bad laws lead to bad outcomes. If enacted, consumers will ultimately feel the harm.”

More from CEI:

• Melugin for the Innovators Network: The EU ran the experiment, America should not repeat it