Tech Regulation: A Continued Challenge Despite New Administration
Amid expectations of regulatory easing in the tech sector with the new presidential administration, a recent analysis from the Phoenix Center indicates that federal agencies are maintaining aggressive regulatory stances akin to those of the previous Biden administration. Key players, including the Federal Trade Commission (FTC) and Federal Communications Commission (FCC), are reportedly expanding their oversight despite President Trump’s pro-growth, deregulatory agenda.
The Phoenix Center’s report, titled "The Unexpected (and Unnecessary) ‘Regulatory Paradox’ in Current U.S. Tech Policy," underscores the tech industry’s significant economic impact, employing around 18 million individuals and contributing over $17 trillion in market capitalization. Historically, this sector has thrived under a bi-partisan, light-touch regulatory framework that fosters rapid innovation.
Interestingly, voter sentiment reveals that 74% of Trump supporters view government regulation as detrimental, while only 17.6% of Biden supporters share the same concern. Even among Trump voters who harbor negative perceptions of tech companies, regulatory opposition remains strong.
Co-author Lawrence Spiwak criticized federal agencies for straying from Trump’s Executive Orders on regulatory reform, suggesting that this undermines the very technological leadership essential to American competitiveness. The analysis outlines concerning trends, including the FTC’s retention of contentious merger guidelines and attempts to regulate constitutionally protected speech.
The Phoenix Center advocates for a shift in regulatory approaches, urging agencies to cease infringement on digital platforms’ speech rights, revert to consumer welfare standards in antitrust actions, and dismantle outdated merger guidelines.
As America heads toward a pivotal 2024 election, there is a call for policies that prioritize innovation and entrepreneurship over regulatory burdens. As Spiwak noted, “Americans voted for change in 2024, not more of the same regulatory excess.”
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