NetChoice Applauds the USTR Investigation of France’s Digital Services Tax

Today NetChoice applauded the US Trade Representative for investigating and considering action against the French Digital Services Tax (DST), which would impose a 3% tax on gross revenue from businesses with annual revenue of $830 million globally. 

“In a desperate bid to help French companies compete, France designed new taxes to penalize America’s online leaders,” said Steve DelBianco, President of NetChoice.

“France flaunted OECD policies when it imposed this discriminatory new tax,” continued DelBianco.  “Just a month after President Macron promised to grow France’s flailing tech industry, his government imposed these taxes to knee-cap American competitors.”

“The USTR is standing-up for American businesses by investigating France’s discriminatory tax. Our government needs to show foreign powers that they will pay a price for targeting America’s online leaders for discriminatory taxes.”

“The DST is doubly discriminatory, by targeting American online business while steering clear of most French companies and sparing ad revenue earned by broadcast and print media.”

Carl Szabo testifies Before Ohio State Senate Judiciary Committee on Antitrust

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MLive - Michigan bill aims to restrict what internet companies could ban from their sites

MLive – Michigan bill aims to restrict what internet companies could ban from their sites

Carl Szabo, vice president and general counsel for the trade association Net Choice, told lawmakers the legislation is rife with “constitutional infirmities” and could lead to a number of unintended consequences, including incentivizing companies to content moderation in order to avoid liability.

The Washington, D.C.-based organization, which says it represents businesses “promoting free speech and free enterprise on the net” on its website, opposes the bill.

“Because the term neutrality is so amorphous and so subject to the eye of the beholder, it’s not going to pass constitutional muster,” Szabo said of the bill. “In order to survive a First Amendment challenge, you have to be a compelling government interest, narrowly tailored and least restrictive. This bill fails all three prongs.”

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POLITICO - 'Populist mobs' vs. the Kochs: Tech probes split the GOP

POLITICO – ‘Populist mobs’ vs. the Kochs: Tech probes split the GOP

“It comes down to the question of: Do you see government as the solution to a perceived problem? Or do you believe that the market is in the best position?” said Carl Szabo, vice president and general counsel of NetChoice, a right-leaning industry trade group whose members include Google and Facebook.

“It is one thing to say you believe in the free market, it’s another thing to actually do what you say,” he said.

Washington Free Beacon - Warren Attacks Facebook as Her Campaign Continues to Use Its Tools

Washington Free Beacon – Warren Attacks Facebook as Her Campaign Continues to Use Its Tools

NetChoice, a coalition of tech companies that includes Facebook, pointed to Warren’s use of the platform’s tools as an example of “political hypocrisy.”

“This is a perfect example of Sen. Warren using Facebook for her own personal gain while railing against it publicly,” said Carl Szabo, the coalition’s vice president and general counsel.

“Candidates continue to lean heavily on the connectivity social platforms provide, yet still use them as a political tool to get a headline or deliver a talking point,” Szabo said. “It’s evident Facebook and other platforms provide a vital service to campaigns and voters, and Warren’s campaign utilizing social platforms to reach voters is a perfect example of this fact.”

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NetChoice Opposition to HB 4801 – A Bill to amend 1976 PA 331 – Social Media Bill

Opposition to HB 4801 – A Bill to amend 1976 PA 331

Carl Szabo testifies on Social Media Moderation bill – Michigan HB 4801

Inside the media industry’s struggle to take on Silicon Valley

Politico

“If only somebody would help Rupert Murdoch,” quipped Carl Szabo, vice president and general counsel of the tech trade group NetChoice, whose members include Facebook and Google.