,,ii #aagth ,,congress #ast ,session ,s4 #biib ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,october #ah1 #bjba,ms4 ,klobuchar 7for herself1 ,mr4 ,grassley1 ,mr4 ,durbin1 ,mr4 ,graham1 ,mr4 ,blumenthal1 ,mr4 ,kennedy1 ,mr4 ,booker1 ,ms4 ,lummis1 ,ms4 ,hirono1 ,mr4 ,warner1 ,mr4 ,hawley1 and ,mr4 ,daines7 introduced the following bill2 which was read twice and referred to the ,committee on the ,judiciary ,a ,,bill ,to provide that certain discriminatory conduct by covered platforms shall be unlawful1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,american ,innovation and ,choice ,online ,act4 #b4 ,unlawful conduct 7a7 ,violation ,it shall be unlawful for a person operating a covered platform1 in or affecting commerce1 if it is shown1 by a preponderance of the evidence1 that the person has engaged in conduct that would-- 7#a7 unfairly preference the covered platform operator's own products1 services1 or lines of business over those of another business user on the covered platform in a manner that would materially harm competition on the covered platform2 7#b7 unfairly limit the ability of another business user's products1 services1 or lines of business to compete on the covered platform relative to the covered platform operator's own products1 services1 or lines of business in a manner that would materially harm competition on the covered platform2 or 7#c7 discriminate in the application or enforcement of the covered platform's terms of service among similarly situated business users in a manner that may materially harm competition on the covered platform4 7b7 ,unlawful conduct ,it shall be unlawful for a person operating a covered platform1 in or affecting commerce1 if it is shown1 by a preponderance of the evidence1 that the person has engaged in conduct that would-- 7#a7 materially restrict or impede the capacity of a business user to access or interoperate with the same platform1 operating system1 hardware or software features that are available to the covered platform operator's own products1 services1 or lines of business that compete or would compete with products or services offered by business users on the covered platform2 7#b7 condition access to the covered platform or preferred status or placement on the covered platform on the purchase or use of other products or services offered by the covered platform operator that are not part of or intrinsic to the covered platform itself2 7#c7 use non-public data that are obtained from or generated on the covered platform by the activities of a business user or by the interaction of a covered platform user with the products or services of a business user to offer1 or support the offering of1 the covered platform operator's own products or services that compete or would compete with products or services offered by business users on the covered platform2 7#d7 materially restrict or impede a business user from accessing data generated on the covered platform by the activities of the business user1 or through an interaction of a covered platform user with the business user's products or services1 such as by establishing contractual or technical restrictions that prevent the portability of the business user's data by the business user to other systems or applications2 7#e7 unless necessary for the security or functioning of the covered platform1 materially restrict or impede covered platform users from un-installing software applications that have been preinstalled on the covered platform or changing default settings that direct or steer covered platform users to products or services offered by the covered platform operator2 7#f7 in connection with any covered platform user interface1 including search or ranking functionality offered by the covered platform1 treat the covered platform operator's own products1 services1 or lines of business more favorably relative to those of another business user than they would be treated under standards mandating the neutral1 fair1 and non-discriminatory treatment of all business users2 or 7#g7 retaliate against any business user or covered platform user that raises concerns with any law enforcement authority about actual or potential violations of ,state or ,federal law4 7c7 ,rule of construction ,subsections 7a7 and 7b7 shall not be construed to require a covered platform operator to divulge1 license1 or otherwise grant the use of the covered platform operator's intellectual property1 trade or business secrets1 or other confidential proprietary business processes to a business user4 7d7 ,affirmative defenses 7#a7 ,in general ,subsection 7a7 shall not apply if the defendant establishes by a preponderance of the evidence that the conduct described in subsections 7a7 was narrowly tailored1 was nonpretextual1 and was necessary to-- 7,a7 prevent a violation of1 or comply with1 ,federal or ,state law2 7,b7 protect safety1 user privacy1 the security of non-public data1 or the security of the covered platform2 or 7,c7 maintain or enhance the core functionality of the covered platform4 7#b7 ,unlawful conduct ,subsection 7b7 shall not apply if the defendant establishes by a preponderance of the evidence that the conduct described in subsection 7b7-- 7,a7 has not resulted in and would not result in material harm to the competitive process by restricting or impeding legitimate activity by business users2 or 7,b7 was narrowly tailored1 could not be achieved through less discriminatory means1 was nonpretextual1 and was necessary to-- 7i7 prevent a violation of1 or comply with1 ,federal or ,state law2 7ii7 protect safety1 user privacy1 the security of non-public data1 or the security of the covered platform2 or 7iii7 maintain or enhance the core functionality of the covered platform4 7e7 ,covered platform designation ,the ,federal ,trade ,commission and ,department of ,justice may jointly1 with concurrence of the other1 designate a covered platform for the purpose of implementing and enforcing this ,act4 ,such designation shall-- 7#a7 be based on a finding that the criteria set forth in clauses 7i7 through 7iii7 of subsection 7h77#d7 are met2 7#b7 be issued in writing and published in the ,federal ,register2 and 7#c7 apply for #g years from its issuance regardless of whether there is a change in control or ownership over the covered platform unless the ,commission or the ,department of ,justice removes the designation under subsection 7f74 7f7 ,removal of covered platform designation ,the ,commission or the ,department of ,justice shall-- 7#a7 consider whether its designation of a covered platform under subsection 7e7 should be removed prior to the expiration of the #g-year period if the covered platform operator files a request with the ,commission or the ,department of ,justice1 which shows that the online platform no longer meets the criteria set forth in clauses 7i7 through 7iii7 of subsection 7h77#d72 7#b7 determine whether to grant a request submitted under paragraph #a not later than #abj days after the date of the filing of such request2 and 7#c7 obtain the concurrence of the ,commission or the ,department of ,justice1 as appropriate1 before granting a request submitted under paragraph 7#a74 7g7 ,remedies ,the remedies provided in this subsection are in addition to1 and not in lieu of1 any other remedy available under ,federal or ,state law4 7#a7 ,civil penalty ,any person who is found to have violated subsections 7a7 or 7b7 shall be liable to the ,united ,states or the ,commission for a civil penalty1 which shall accrue to the ,united ,states ,treasury1 in an amount not more than #ae percent of the total ,united ,states revenue of the person for the period of time the violation occurred4 7#b7 ,injunctions ,the ,assistant ,attorney ,general of the ,antitrust ,division1 the ,commission1 or the attorney general of any ,state may seek1 and the court may order1 relief in equity as necessary to prevent1 restrain1 or prohibit violations of this ,act4 7#c7 ,repeat offenders ,if the fact finder determines that a person has engaged in a pattern or practice of violating this ,act1 the court shall consider requiring1 and may order1 that the ,chief ,executive ,officer1 and any other corporate officer as appropriate to deter violations of this ,act1 forfeit to the ,united ,states ,treasury any compensation received by that person during the #ab months preceding or following the filing of a complaint for an alleged violation of this ,act4 7h7 ,definitions ,in this section3 7#a7 ,antitrust laws ,the term antitrust laws has the meaning given the term in subsection 7a7 of section #a of the ,clayton ,act 7#ae ,u4,s4,c4 #ab74 7#b7 ,business user ,the term ,business ,user means a person that utilizes or is likely to utilize the covered platform for the sale or provision of products or services1 including such persons that are operating a covered platform or are controlled by a covered platform operator4 7#c7 ,commission ,the term ,commission means the ,federal ,trade ,commission4 7#d7 ,covered platform ,the term covered platform means an online platform-- 7,a7 that has been designated as a covered platform under section #b7;e72 or 7,b7 that-- 7i7 at any point during the #ab months preceding a designation under section #b7;e7 or at any point during the #ab months preceding the filing of a complaint for an alleged violation of this ,act-- 7,i7 has at least #ej1jjj1jjj ,united ,states-based monthly active users on the online platform2 or 7,,ii7 has at least #ajj1jjj ,united ,states-based monthly active business users on the online platform2 7ii7 at any point during the #b years preceding a designation under section #b7;e7 or at any point during the #b years preceding the filing of a complaint for an alleged violation of this ,act1 is owned or controlled by a person with ,united ,states net annual sales or a market capitalization greater than #eej1jjj1jjj1jjj1 adjusted for inflation on the basis of the ,consumer ,price ,index2 and 7iii7 is a critical trading partner for the sale or provision of any product or service offered on or directly related to the online platform4 7#e7 ,critical trading partner ,the term critical trading partner means a person that has the ability to restrict or materially impede the access of-- 7,a7 a business user to its users or customers2 or 7,b7 a business user to a tool or service that it needs to effectively serve its users or customers4 7#f7 ,person ,the term person has the meaning given the term in subsection 7a7 of section #a of the ,clayton ,act 7#ae ,u4,s4,c4 #ab74 7#g7 ,data 7,a7 ,in general ,not later than #f months after the date of enactment of this ,act1 the ,commission shall adopt rules in accordance with section #eec of title #e1 ,united ,states ,code1 to define the term data for the purpose of implementing and enforcing this ,act4 7,b7 ,data ,the term data shall include information that is collected by or provided to a covered platform or business user that is linked1 or reasonably linkable1 to a specific-- 7i7 user or customer of the covered platform2 or 7ii7 user or customer of a business user4 7#h7 ,online platform ,the term online platform means a website1 online or mobile application1 operating system1 digital assistant1 or online service that-- 7,a7 enables a user to generate content that can be viewed by other users on the platform or to interact with other content on the platform2 7,b7 facilitates the offering1 sale1 purchase1 payment1 or shipping of products or services1 including software applications1 between and among consumers or businesses not controlled by the platform operator2 or 7,c7 enables user searches or queries that access or display a large volume of information4 7#i7 ,control ,the term control with respect to a person means-- 7,a7 holding #be percent or more of the stock of the person2 7,b7 having the right to #be percent or more of the profits of the person2 7,c7 having the right to #be percent or more of the assets of the person1 in the event of the person's dissolution2 7,d7 if the person is a corporation1 having the power to designate #be percent or more of the directors of the person2 7,e7 if the person is a trust1 having the power to designate #be percent or more of the trustees2 or 7,f7 otherwise exercises substantial control over the person4 7#aj7 ,state ,the term ,state means a ,state1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 and any other territory or possession of the ,united ,states4 7i7 ,enforcement 7#a7 ,in general ,except as otherwise provided in this ,act-- 7,a7 the ,commission shall enforce this ,act in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 were incorporated into and made a part of this ,act2 7,b7 the ,attorney ,general shall enforce this ,act in the same manner1 by the same means1 and with the same jurisdiction1 powers and duties as though all applicable terms of the ,sherman ,act 7#ae ,u4,s4,c4 #a et seq471 ,clayton ,act 7#ae ,u4,s4,c4 #ab et seq471 and ,antitrust ,civil ,process ,act 7#ae ,u4,s4,c4 #acaa et seq47 were incorporated into and made a part of this ,act2 and 7,c7 any attorney general of a ,state shall enforce this ,act in the same manner1 by the same means1 and with the same jurisdiction1 powers and duties as though all applicable terms of the ,sherman ,act 7#ae ,u4,s4,c4 #a et seq47 and the ,clayton ,act 7#ae ,u4,s4,c4 #ab et seq47 were incorporated into and made a part of this ,act4 7#b7 ,unfair methods of competition ,a violation of this ,act shall also constitute an unfair method of competition under section #e of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #de74 7#c7 ,commission independent litigation authority ,if the ,commission has reason to believe that a person violated this ,act1 the ,commission may commence a civil action1 in its own name by any of its attorneys designated by it for such purpose1 to recover a civil penalty and seek other appropriate relief in a district court of the ,united ,states4 7#d7 ,parens patriae ,any attorney general of a ,state may bring a civil action in the name of such ,state for a violation of this ,act as parens patriae on behalf of natural persons residing in such ,state1 in any district court of the ,united ,states having jurisdiction of the defendant1 and may secure any form of relief provided for in this section4 7j7 ,emergency relief 7#a7 ,in general ,the ,commission1 ,assistant ,attorney ,general of the ,antitrust ,division1 or any attorney general of a ,state may seek a temporary injunction requiring the covered platform operator to take or stop taking any action for not more than #abj days and the court may grant such relief if the ,commission1 the ,united ,states1 or the attorney general of a ,state proves-- 7,a7 there is a claim that a covered platform operator took an action that would violate this ,act2 and 7,b7 that action impairs the ability of business users to compete with the covered platform operator4 7#b7 ,emergency relief ,the emergency relief shall not last more than #abj days from the filing of the complaint4 7#c7 ,termination ,the court shall terminate the emergency relief at any time that the covered platform operator proves that the ,commission1 the ,united ,states1 or the attorney general of the ,state seeking relief under this section has not taken reasonable steps to investigate whether a violation has occurred4 7#d7 ,other equitable relief ,nothing in this subsection prevents or limits the ,commission1 the ,united ,states1 or any attorney general of any ,state from seeking other equitable relief as provided in subsection 7g7 of this section4 7k7 ,statute of limitations ,a proceeding for a violation of this section may be commenced not later than #f years after such violation occurs4 #c4 ,judicial review 7a7 ,in general ,any party that is subject to a covered platform designation under section #b7;e7 of this ,act1 a decision in response to a request to remove a covered platform designation under section #b7;f7 of this ,act1 a final order issued in any district court of the ,united ,states under this ,act1 or a final order of the ,commission issued in an administrative adjudicative proceeding under this ,act may within #cj days of the issuance of such designation1 decision1 or order1 petition for review of such designation1 decision1 or order in the ,united ,states ,court of ,appeals for the ,district of ,columbia ,circuit4 7b7 ,treatment of findings ,in a proceeding for judicial review of a covered platform designation under section #b7;e7 of this ,act1 a decision in response to a request to remove a covered platform designation under section #b7;f7 of this ,act1 or a final order of the ,commission issued in an administrative adjudicative proceeding under this ,act1 the findings of the ,commission or the ,assistant ,attorney ,general as to the facts1 if supported by evidence1 shall be conclusive4 #d4 ,enforcement guidelines 7a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,commission and the ,assistant ,attorney ,general of the ,antitrust ,division shall jointly issue guidelines outlining policies and practices1 relating to agency enforcement of this ,act1 including policies for determining the appropriate amount of a civil penalty to be sought under section #b7;g77#a7 of this ,act1 with the goal of promoting transparency1 deterring violations1 and imposing sanctions proportionate to the gravity of individual violations4 7b7 ,updates ,the ,commission and the ,assistant ,attorney ,general of the ,antitrust ,division shall update the joint guidelines issued under subsection 7a71 as needed to reflect current agency policies and practices1 but not less frequently than once every #d years beginning on the date of enactment of this ,act4 7c7 ,operation ,the ,joint ,guidelines issued under this section do not confer any rights upon any person1 ,state1 or locality1 nor shall they operate to bind the ,commission1 ,department of ,justice1 or any person1 ,state1 or locality to the approach recommended in such ,guidelines4 #e4 ,rule of construction 7a7 ,notwithstanding any other provision of law1 whether user conduct would constitute a violation of section #ajcj of title #ah of the ,united ,states ,code is not dispositive of whether the defendant has established an affirmative defense under this ,act4 7b7 ,an action taken by a covered platform operator that is reasonably tailored to protect the rights of third parties under sections #ajf1 #aaja1 #abja1 or #adja of title #ag of the ,united ,states ,code or rights actionable under sections #cb or #dc of the ,lanham ,act 7#ae ,u4,s4,c4 #aaad1 #aabe71 or corollary state law1 shall not be considered unlawful conduct under subsection #b7;a7 or 7b7 of this ,act4 7c7 ,nothing in this ,act shall be construed to limit any authority of the ,attorney ,general or the ,commission under the antitrust laws1 the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #de71 or any other provision of law or to limit the application of any law4 #f4 ,severability ,if any provision of this ,act1 an amendment made by this ,act1 or the application of such provision or amendment to any person or circumstance is held to be unconstitutional1 the remainder of this ,act and of the amendments made by this ,act1 and the application of the remaining provisions of this ,act and amendments to any person or circumstance shall not be affected4