Sec. 4. Restrictions on dominant digital firms
484 words·~2 min read·
/bill/117/s/1074/is/section-4·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Federal Trade Commission Act ( 15 U.S.C. 41 et seq.) is amended by inserting after section 10 the following: In this section: The term dominant digital firm means a person, partnership, or corporation that— provides a website or service accessible through the internet; and possesses dominant market power in any market related to that website or service. The term search functionality means any feature or aspect of a website or service accessible through the internet that allows a user to input alphanumeric data in order to retrieve and display a ranked list of relevant results.
The Commission shall have power to designate a person, partnership, or corporation as a dominant digital firm. In determining whether a person, partnership, or corporation possesses dominant market power under paragraph (1), the Commission shall consider factors including— dominance of the firm in other markets and durability of the dominance; the extent to which the firm benefits from government contracts or other privileges; exclusivity agreements entered into by the firm; network effects; and any ownership stake of the firm in other entities within the supply chain of the firm.
In determining whether to designate a person, partnership, or corporation as a dominant digital firm under paragraph (1), the Commission shall have power to issue investigative demands. Any designation made by the Commission under subsection
(b)shall be preceded by a notice and comment period in accordance with section 553 of title 5, United States Code, except that the required publication and service of any designation by the Commission may be made not less than 15 days before the effective date of the designation. Any designation made by the Commission under subsection
(b)shall be subject to judicial review pursuant to section 706 of title 5, United States Code. Any acquisition by a person, partnership, or corporation designated as a dominant digital firm under this section, direct or indirect, of the whole or any part of the stock or other share capital or the whole or any part of the assets of 1 or more persons engaged in commerce or in any activity affecting commerce, where such acquisition exceeds $1,000,000 (as adjusted and published for each fiscal year beginning after September 30, 2022, in the same manner as provided in section 8(a)(5) of the Clayton Act to reflect the percentage change in the gross national product for such fiscal year compared to the gross national product for the year ending September 30, 2021) shall be presumed to be a unfair or deceptive act or practice. It shall be an unfair or deceptive act or practice if a person, partnership, or corporation designated as a dominant digital firm under this section— provides search functionality; promotes or demotes particular search results, on the basis of whether those results are affiliated or not affiliated with the dominant digital firm; and does not disclose such affiliation to users of the search functionality. .
Connectionstraces to 1
Traces to 1 document
Citation graph
cites case law
Sec. 4
Restrictions on dominant digital firms
Cites 1Cited by 0 across 0 sources