i2Coalition Internet Infrastructure Policy Brief: July 2024

Your brief update on important Internet policy issues

OUTLOOK

The U.S. House of Representatives adjourned in late July for the summer recess period with plans to return to Washington on September 9. The House did not meet the goal of completing work on all 12 FY 2025 funding bills before the August break. The Senate recess period starts about one week later in early August. The House’s departure followed several weeks of political crisis and turmoil in the U.S. precipitated by some major events, including: a poor performance by President Biden at the first televised debate on June 27 with the Republican candidate and former President Trump, casting doubt on Democratic prospects for victory in the November elections; the July 13 attempted assassination by a lone gunman of former President Trump during an outdoor campaign rally in Butler, Pennsylvania; and President Biden’s announcement on July 21 that he would end his re-election campaign and endorse Vice President Kamala Harris to be the Democrats’ nominee for President. Following the shocking violence in Pennsylvania, the Republican Party held its political convention in Milwaukee, Wisconsin, officially approving the candidacies of former President Trump and his selected Vice Presidential running mate Senator J.D. Vance of Ohio. Vice President Harris is expected to announce her chosen running mate before the Democrats hold their political convention in Chicago, Illinois, from August 19-22. When Congress returns in September, it must work on passing a continuing resolution to extend funding for the federal government after the end of the current fiscal year on September 30 in order to avoid a shutdown. Bicameral negotiations on an omnibus FY 2025 funding package are expected during the post-election lame duck session. The Senate plans to take up the FY 2025 National Defense Authorization Act (NDAA) in the fall, possibly during the post-election lame duck session. Congress will also continue to conduct high-profile, bipartisan investigations of the assassination attempt in Butler, Pennsylvania, focused particularly on the failure of the Secret Service to prevent the incident. 

TECH POLICY PRIORITIES

Section 230/Intermediary Liability/Content Moderation. Reps. Jake Auchincloss (D-MA) and Ashley Hinson (R-IA) introduced the “Intimate Privacy Protection Act,” which would condition Section 230 immunity on tech companies’ efforts against deepfake pornography, including those generated by artificial intelligence. Under the bill, an interactive computer service provider would lose Section 230 protections if it fails to implement a “duty of care” responsive to any deepfake pornography on its platform, including removal of harmful content within 24 hours. The bill would apply to all tech platforms regardless of financial resources or monthly active user base. The U.S. Supreme Court issued several highly anticipated decisions involving the First Amendment and social media platforms at the end of its term. In Murthy v. U.S., the Court ruled that government agencies could continue requesting the removal of posts on social media platforms that they believe negatively impact public health. The Court found no evidence of government coercion of social media sites. In its Moody v. NetChoice and NetChoice v. Paxton decision, the Court remanded to lower courts the cases challenging the Texas and Florida social media regulation laws, emphasizing First Amendment protections for tech platforms. 

Federal Privacy. On July 30, by an overwhelming 91-3 vote, the Senate passed the Kids Online Safety Act and the Children’s Online Privacy Protection Act 2.0 (COPPA 2.0). The bills were approved as part of a consolidated Senate measure entitled the Kids Online Safety and Privacy Act (KOSPA). Next steps for these bills in the House are unclear. The House has been working on its own versions of KOSA and COPPA 2.0. The short legislative calendar remaining before the November 5 elections has dimmed prospects for further action on the American Privacy Rights Act (APRA), the bipartisan comprehensive federal privacy legislation. The Senate unanimously passed the DEFIANCE Act on July 23, a bill that allows victims of deepfake pornography to sue those responsible for creating or distributing nonconsensual explicit content. On July 10, the Senate unanimously passed the SHIELD Act, which criminalizes the distribution of private intimate images without consent and addresses the growing issue of extortion scams. Senators Ted Cruz (R-TX) and Amy Klobuchar (D-MN) also introduced the Take It Down Act, a bipartisan bill aiming to ban the publishing of deepfake pornography and revenge porn. 

Copyright/IP. On July 31, Sens. Coons (D-DE), Blackburn (R-TN), Klobuchar (D-MN) and Tillis (R-NC) introduced the NO FAKES Act, legislation intended to protect the voice and visual likenesses of creators and individuals from the proliferation of digital replicas created without their consent. The U.S. Patent and Trademark Office (USPTO) will hold a public forum on August 5 to gather input on whether existing laws protecting people from unauthorized uses of their name, image, and likeness should change due to the advent and rapid adoption of AI. More than fifty music companies have announced support for “Principles for Music Creation with AI” to ensure the responsible use of AI in music creation. 

Antitrust/Competition. Senate Democrats, including Ron Wyden (D-OR), Peter Welch (D-VT), and Elizabeth Warren (D-MA), are urging the FTC and DOJ to investigate the dominance of major tech companies in the AI sector. On August 1, the FTC and DOJ will co-host a public meeting for President Biden’s Strike Force on consumer prices, focusing on unfair and illegal pricing practices. A federal district court partially blocked the FTC’s rule banning noncompete agreements from taking effect. 

Broadband. The U.S. Court of Appeals for the Sixth Circuit temporarily stayed the FCC’s net neutrality order until August 5 and set a July 19 deadline for the filing of supplemental briefs regarding the application of the U.S. Supreme Court’s 2005 Brand X decision. In its supplemental brief, the FCC asserted that its net neutrality rules are lawful and supported by major Supreme Court decisions. Sen. Marsha Blackburn (R-TN) introduced a Senate resolution to overturn the FCC’s net neutrality rules, following a similar House resolution introduced earlier by Rep. Bob Latta (R-OH). On July 24, the U.S. Court of Appeals for the Fifth Circuit declared that the FCC’s Universal Service Fund (USF) contribution methodology is unconstitutional and in violation of the nondelegation doctrine because Congress did not properly delegate this authority to the FCC. Supporters of the Affordable Connectivity Program are still trying to pass federal legislation to maintain its funding. The House Energy and Commerce Committee Republicans launched a probe into NTIA’s administration of the $42.5 BEAD program focused on NTIA’s communications with state broadband offices. The Republican lawmakers are concerned that NTIA’s imposition of low-cost offering requirements effectively and improperly enforces rate regulation. 

Find Out More…

For more in-depth updates on Internet policy, including issues that specifically impact your organization, please contact us about joining the i2Coalition.