Sec. 2501 of 2023 Consumer Protection Act

Proposed 2023-07-27 | Official source

Summary

Requires operators of dominant online platforms with owners (including minority owners) who are citizens of foreign adversaries of the U.S. to sequester data and algorithms from agents of any foreign entity.

This summary is awaiting validation (peer review by a second AGORA editor).

Key facts

🏛️ This document was proposed and/or enacted by the United States Congress but is now defunct. For authoritative text and metadata, visit the official source.

🎯 This document primarily applies to the private sector, rather than the government.

📜 This document's name is Sec. 2501. Corporate Citizenship and Ownership, Digital Consumer Protection Commission Act of 2023. AGORA also tracks this document under the name Sec. 2501 of 2023 Consumer Protection Act. It is part of 2023 Consumer Protection Act.

↳ This document is part of a longer one: 2023 Consumer Protection Act. Some AGORA documents are "split off" from longer documents that mix AI and non-AI content, such as omnibus authorization or appropriations laws in the United States Congress. Read more >>

Themes AI risks, applications, governance strategies, and other themes addressed in AGORA documents.

Thematic tags for this document are awaiting validation (peer review by a second AGORA editor).

Governance strategies (2)

AI application areas (1)

Broadcasting and media production

Full text

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Thematic tags for this document are awaiting validation (peer review by a second AGORA editor).

SEC. 2501. Corporate citizenship and ownership. “(a) Definition.—In this section, the term ‘foreign adversary’ has the meaning given the term in section 8(c) of the Secure and Trusted Communications Networks Act of 2019 (47 U.S.C. 1607(c)). “(b) Corporate citizenship.— “(1) IN GENERAL.—An operator of a dominant platform shall— “(A) be a citizen of the United States; or “(B) own a subsidiary corporation— “(i) that is a citizen of the United States; and “(ii) the number of directors of which who are noncitizens is less than half of the number of directors necessary to constitute a quorum. “(2) DIRECTORS.—No director of a subsidiary corporation described in paragraph (1)(B) may be a citizen of a foreign adversary.

“(c) Ownership.—If more than 10 percent of the owners of an operator of a dominant platform are citizens of a foreign adversary, the operator of the dominant platform shall sequester any back-end data, algorithm, or information about United States users on the dominant platform so that the back-end data, algorithm, or information is inaccessible to any subsidiary, affiliate, director, employee, or agent of the operator of the dominant platform that is based outside of the United States. “(d) Review by Committee on Foreign Investment in the United States.— “(1) IN GENERAL.—The Committee on Foreign Investment in the United States shall— “(A) treat the application of a foreign person (as defined in section 800.224 of title 31, Code of Federal Regulations (or a successor regulation)) for a license under title VI as a covered transaction, as defined in subsection (a) of section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565); and “(B) review and, as appropriate, investigate the application in accordance with the procedures set forth in such section 721. “(2) DENIAL OF LICENSE.—If the Committee determines pursuant to paragraph (1) that providing a license under title VI to a foreign person threatens to impair the national security of the United States, the Office of Licensing for Dominant Platforms shall deny the application for the license. “(3) CONSULTATION WITH DEPARTMENT OF JUSTICE.—The Committee may, in its discretion, consult with the National Security Division of the Department of Justice in making a determination under paragraph (1).