A newly introduced bill from U.S. Rep. Carol Miller (R-WV) would authorize the appropriate administrative authorities to impose certain restrictions on the Republic of Korea (ROK) to protect American digital businesses abroad.
The U.S.-Republic of Korea Digital Trade Enforcement Act, H.R. 9876, which the congresswoman sponsored on Sept. 27, aims to protect American digital companies if the ROK passes its Platform Competition Promotion Act (PCPA), or any other law that would harm such U.S. businesses overseas.
“The Republic of Korea is an important economic and security partner of ours, but we cannot stand by and let U.S. digital companies be targeted by their laws,” Rep. Miller said. “The PCPA would benefit Chinese companies, put our national security at risk, and negatively impact our economy.”
The PCPA is framed as an anti-monopoly bill but would end up targeting U.S. firms, according to a bill summary provided by Rep. Miller’s staff.
In fact, several issues would arise from the bill, including requiring the public disclosure of proprietary algorithms, restricting the offering of multiple products in a digital ecosystem, and subjecting designated companies to a “cease and desist” power that would allow the Korean government to halt operations at the outset of an unfair trade practice investigation even before wrongdoing is found, the summary says.
If enacted, H.R. 9876 states that if the ROK passes the PCPA or any other legislation that attacks a U.S. digital company, the U.S. Trade Representative would report to Congress on the impacts to the platform, whether the action is in violation of a trade agreement, and if there are impacts to U.S. commerce as a whole.
Following the report, the U.S. Secretary of Commerce would be instructed to take action to protect U.S. trade, including by a case within the World Trade Organization dispute settlement body, a 301 investigation, a dispute under the U.S.-Korea Free Trade Agreement, or entering into an agreement with Korea to mitigate all impacts, the summary states.
“I introduced the U.S.-Republic of Korea Digital Trade Enforcement Act to protect American digital trade overseas and ensure that the Korean government does not overstep the bounds of our U.S.-Korea Free Trade Agreement,” said the congresswoman.
H.R. 9876 has been referred to the U.S. House Ways and Means Committee for consideration.