Legislative Analysis Assignment

Question: Identify two proposed bills or recently enacted statutes (Federal or State) that effect business, industry, or commerce. One way to determine if a bill is a good candidate is to ask if it will effect the inputs, processes, or outputs (either internally or externally) of a particular company or industry, is it regulatory in nature, will effect the costs of doing business, or will effect the markets or customers served by a particular business or industry.

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The American Innovation and Choice Online Act

This bill was enacted in January 2022, and this legislation aimed to prevent Big Tech companies from ‘self-referencing' their products at the expense of their competitors. The bill was introduced to the Senate because a report in 2020 found that companies are conducting anti-competitive conduct in the market, leading to unfair competition in the e-commerce industry(American Innovation and Choice Online Act, 2021). There were important provisions included in the bill that will prohibit online platforms from giving preferences to their products or services over those of their competitors to provide a level playing field for businesses operating on digital platforms (Dailey, 2022).

It also included provisions to not interfere with another business's pricing decision or intentionally disregard the products or services of those companies who are a threat to the platform's dominance. According to the legislation. It would prevent the covered platform from making an attack on the business user who is a competition to them. In such a case, the penalty is to pay 15% of the revenue earned in the prior year or 30% of the revenue earned by harming the business slime of the competitor. This legislature covers any business with 50 million monthly users and a market capitalization of more than 600 million dollars.

the bill sparked debate over how the bill would affect the competitiveness of major companies in America and would make the American economy weaker by making companies move to different countries to expand their global base.

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However, the bill was then countered by the potential it holds in allowing different small businesses to find an opportunity to grow. The American Innovation and Choice Online Act (AICO) was enacted and implemented in the United States. The central idea behind the American Innovation and Choice Online Act was to control because it ran with the idea that businesses that control a specific marketplace should not be allowed to set special rules for themselves and manipulate consumer preferences. The AICO Act impacted the way businesses were operating on digital platforms and provided everyone a chance to grow on the e-commerce scale. It also helped consumers make more informed decisions based on the product/service rather than self-referencing and intentionally harming a competitor. It protected the rights of small, medium, and upcoming enterprises to enter and compete in the market fairly (Dailey, 2022).

The bill helped small businesses the most as they heavily rely on digital platforms for expanding and attracting a consumer base. apart from this, the legislation also gives importance to the fact that dominant platforms present a heavy risk for open markets and competition, with risk for consumers, business, innovation, resilience, global competitiveness, and democracy(American Innovation and Choice Online Act, 2021).

By controlling the key arteries of commerce and communications, big tech companies exercise their power and outsize the market to protect themselves. Through this legislature, competitors of big tech companies are able to find a position in the market and contribute to overall economic prosperity. the legislature holds the covered platform accountable to show if their actions pose any harm to competition or threaten consumer privacy.

The bill is one of the most pivotal bills introduced by the government as it challenges the power that big companies have over small upcoming businesses in the market. It undoubtedly affected the way businesses were practicing and filtering out options for consumers to promote their products at the cost of creating problems for their competitors. As a result, the covered businesses became accountable for their actions, small businesses got a fair market to play and consumers got different choices to choose from. It created a win-win situation for other small businesses and consumers by allowing open competition an curing illegal trade practices (Dailey, 2022).

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The Infrastructure Investment and Jobs Act

This is another crucial bill passed on 15th November 2021. According to this legislation, the government heavily focused on modernizing the country's infrastructure across various sectors(Infrastructure Investment and Jobs Act, 2021). The amended version mentions $1.2 trillion in funding for broadband access, transportation, water systems, energy, and public buildings. A significant portion of the total spending is allocated to enhancing the transportation infrastructure, including roads, bridges, public transit, and airports. It also made significant strategies for providing reliable eater infrastructure and broadband in rural areas. To maintain, the overall goal, the workforce development initiative was also taken a part of the legislation to provide training and jobs to people who would look after the construction and maintenance of the construction projects (Klingel& von Loesecke, 2022). as of now, the IIJA invests over $16.7 billion to improve infrastructure at costal ports and $110 billion for developing roads, bridges and major projects.

Lastly, the legislation also focused on investing in clean and green infrastructure, including efforts to increase the reliability of the power grids and promote the operation of clean energy technologies. This legislation impacted several businesses and industries and it led to more job growth for construction and manufacturing. As of December 23, 2022, the IIJA, along with CaSA, and IRA together catalysed $640 billion in private investment spanning different industries. This amount includes $234 billion from electronics and semiconductors, $157 billion in electric vehicles and batteries, and $133 billion in the clean power industry. The IIJA act also proves to be a good bill as it shows the government's strategy to modernize the nation's infrastructure as it is the single most important thing on which businesses and industry rely. Through this act, many businesses across various industries were able to get the opportunity to provide their innovative product/ service and the market opened for consumers to know the changes happening across industries. Businesses were able to make strategic decisions regarding clean energy and transportation to improve their operations (Klingel& von Loesecke, 2022).

This can be understood in a number of ways. the entire bill looks after the infrastructure of the company and it affects many industries in one go. For instance, the funds allocated for transportation projects will connect major cities to ports and many other locations through which supply chain will be efficient and more reliable. Businesses would be able to change their supply chain and delivery strategies to operate faster and more efficiently. This affects the quality of the service presented by the companies, the customer satisfaction and job opportunities that will arise from construction and even for people working for these companies.

Clean energy also forms an essential part of the entire bill as it helps many start-up companies to looks for opportunities to work with the government to provide and also to grow in the market through green and clean energy, businesses, government as well as consumers will be affected as the investment is directly attributed to the American Economy. It helps the economy to stand as the innovative and technologically advanced nation having infrastructure to promote the future of the next generation(Infrastructure Investment and Jobs Act, 2021).

High speed internet also makes an important arena for broadband companies to connect people globally so that consumers can find opportunities for themselves and grow, for example, with an extensive internet access, even a rural family can have a rural business with complete digital presence. And Lastly, not to forget, the funding across different sectors has been able to create countless job opportunities for minimum wage workers as well as businesses across the nation.

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  • What is the American Innovation and Choice Online Act?
  • What is the current status of the AICOA?
  • What are the exceptions (affirmative defenses) under the AICOA?
  • What is the Infrastructure Investment and Jobs Act?
  • How much new spending does the IIJA authorize?
  • What are some potential challenges in implementing the IIJA?

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