H.R. 4278: Protect U.S. Companies from Foreign Regulatory Taxation Act

The bill known as the "Protect U.S. Companies from Foreign Regulatory Taxation Act" seeks to enhance protections for U.S. businesses, particularly those in the digital sector, from regulations imposed by foreign governments. The primary goals and provisions of the bill include the following:

Short Title

This legislation is referred to as the "Protect U.S. Companies from Foreign Regulatory Taxation Act."

Findings

Congress recognizes several key points:

• Engagement in international commerce is crucial for U.S. citizens.
• Digital sector entities significantly contribute to the U.S. economy and the global economy.
• The U.S. has a strategic advantage in developing technology, particularly artificial intelligence.
• Investments in digital infrastructure extend U.S. influence globally.
• Digital innovation drives economic growth, improves government efficiency, and creates jobs.
• U.S. national security is strengthened by relying on domestic technology for global digital services.
• Foreign regulations that target U.S. companies can undermine their competitiveness.
• These restrictions can negatively impact employment, economic stability, and international trade.
• The U.S. has a vital interest in protecting its supply chains and industries connected to national security.

Protections Against Foreign Regulations

Prohibition

The bill stipulates that no adverse judgment regarding digital market regulations by a foreign court or agency can be recognized or enforced by U.S. federal or state courts unless explicitly stated in another U.S. law.

Presidential Authority

The President is empowered to act in the public interest to protect U.S. entities from negative actions by foreign courts or agencies related to digital market regulations. In making such determinations, the President must consider:

• The impact on U.S. consumers and businesses.
• The economic and technological security of the United States.
• The implications for U.S. foreign relations, including existing international commitments.

Definitions

Key Definitions

Several terms are defined for clarity in the context of the bill:

• Core platform service: Defined as per a specific section of the Digital Markets Act.
• Digital Markets Act: Refers to a European regulation that aims to ensure fair competition in the digital market.
• Entity integral to national interests: Any entity that conducts business with the federal government, is state-organized, provides core platform services, and must comply with foreign digital market regulations.
• Foreign digital market regulation: Any law or regulation from a foreign government requiring entities to provide interoperability, disclose private information, or restrict lawful data use, among other requirements.

Relevant Companies

None found.