HR4278-119

1. Short title This Act may be cited as the Protect U.S. Companies from Foreign Regulatory Taxation Act.

2. Findings Congress finds the following: The ability of citizens of the United States to engage in international commerce is a fundamental policy concern of the United States. Entities in the digital sector contribute significantly to the prosperity of the United States and the growth of the world economy. The United States has a strategic advantage in the responsible development and deployment of artificial intelligence and other critical and emerging technologies. Investments in digital infrastructure and innovation by the United States are a critical extension of the influence and leadership of the United States abroad. Digital innovation in the United States drives economic growth, streamlines government efficiency, and promotes job creation. The national security of the United States is strengthened when United States technology is the backbone of the digital services of the world. United States leadership with respect to technology is under threat due to the proliferation of foreign regulations that target companies from the United States and seek to make United States digital services less competitive. Restrictions, particularly restrictions adopted unilaterally by foreign countries, that are substantially different from restrictions applied by the United States and that unreasonably hinder the ability of entities integral to the national interests of the United States to pursue commercial activities can have serious adverse effects on employment, economic stability, scientific progress, and international trade, with the potential to impede domestic and foreign policy goals. The United States has an essential security interest in protecting the safety of the citizens of the United States, securing supply chains for strategically significant industries and infrastructure, and ensuring that industrial sectors related to national security are protected from the influence and control of malign foreign entities.

3. Protections with respect to foreign regulation No judgment against an entity integral to the national interests of the United States by a court or agency of a foreign government with respect to a foreign digital market regulation may be recognized or enforced by any Federal or State court or agency unless otherwise provided for in an Act of Congress. The President is authorized to take any action the President determines is in the public interest to protect an entity integral to the national interests of the United States from an adverse action by a court or agency of a foreign government with respect to a foreign digital market regulation. In determining under paragraph (1) whether an action is in the public interest, the President shall consider the impact of the relevant adverse action on— consumers and businesses in the United States; the economic and technological security of the United States; and the foreign relations of the United States, including existing international commitments.

4. Definitions In this Act: The term core platform service has the meaning given such term in article 2 of chapter I of the Digital Markets Act. The term Digital Markets Act means— regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828 (Digital Markets Act); and any successor to such regulation. The term end-user has the meaning given such term in section 301 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8541). The term entity integral to the national interests of the United States means any entity— that— does business with the Federal Government, including through Federal contract awards or leases; is organized under the laws of a State; provides a core platform service; and is required to comply with requirements under a foreign digital market regulation; or that the President otherwise determines is integral to the national interests of the United States. The term foreign digital market regulation means any law, regulation, or other legal instrument adopted by a foreign government that requires an entity to— provide interoperability with respect to any operating systems of such entity; disclose information protected under the laws of the United States, including with respect to intellectual property rights, proprietary algorithms, or trade secret protections; restrict the use of personal data lawfully collected under the laws of the United States, including if collected for the purpose of providing online advertising services; provide sensitive data to third parties, including ranking, query, click, and view data related to free and paid searches generated by end-users or any other customer data; promote rival entities by prohibiting the entity from giving more favorable treatment to the services and products of the entity as compared to equivalent services and products offered by rival entities; ensure that rival entities are permitted to communicate with users, promote offers, and conclude contracts through channels other than channels controlled by the entity, including in relation to users acquired via the services of the entity; provide for data portability, limit marketing, or limit competitive pricing measures; or cease ordinary business operations without a finding of fault or a demonstration of immediate and irreparable harm by an authorized adjudicatory body. The term foreign digital market regulation does not apply to any law, regulation, or other legal instrument that is substantively similar to a law, regulation, or other legal instrument established by an Act of Congress. The term foreign digital market regulation includes the Digital Markets Act. The term State means each State of the United States, the District of Columbia, and each territory or possession of the United States.