A report by a policy analyst claims the U.S. lost its position as the leading influencer of policies affecting the digital economy, with Europe and China now taking the forefront. To regain its competitiveness and promote American values on the world stage, the report claims U.S. policymakers should prioritize pro-innovation digital policies, defend the successful light-touch regulatory approach abroad and collaborate with allies to advance free trade and democratic values globally, according to an Information Technology and Innovation Foundation July 31 news release.
“Techlash is in vogue. The belief has seeped into American policy discussions and gained a foothold around the world," Ashley Johnson, the report's author, said. "The global digital policy scene has lately been marked by European overregulation and overreach — which disproportionately targets American firms with costly regulation and fines; a rise in digital protectionist policies; and an increase in digital authoritarianism from China and Russia. These trends pose a threat to U.S. competitiveness and economic growth, and the government has so far failed to adequately respond to this threat.”
After decades of consecutive administrations deprioritizing the problem, the U.S. is no longer the primary driver of policy affecting the digital economy, falling behind Europe and China in importance. The report says American policymakers should reject anti-tech sentiment and prioritize pro-innovation digital policies at home, defend America's successful light-touch regulatory approach abroad and collaborate with allies to advance free trade and democratic values globally, the release reported.
The report offers a 15-point strategy to assist the federal government once again exercise its influence and respond to threats of overregulation, digital protectionism and the authoritarian influence of China and Russia in order to reestablish U.S. leadership in global digital policy, the release said. The strategy recommends the U.S. emphasize an agenda that supports innovation, work with allies to advance free trade and democratic principles and fight back against destructive digital narratives and policies.
The report traces the development of American leadership in digital policy, highlighting decisions made during the Clinton administration, significant laws like Section 230 of the Communications Decency Act and the Internet Tax Freedom Act, American involvement in international collaborations on digital policy initiatives and American advocacy for a multistakeholder approach to Internet governance, the release reported.
ITIF explains how other nations have stepped in to fill the gap left by recent failures of the U.S. in the area of digital policy, according to the release.
The report urges the U.S. to take those 15 actions to reclaim control over international digital policy. These points include that the Biden administration's stated goal to rebuild America's worldwide position should be expanded upon by the White House, which should also set the tone for the rest of the federal government, the release said.
The government needs to fight back against digital narratives and regulations that harm American companies and workers, even when they come from partners like the EU. In especially among democratic nations that share many of the same ideals, the U.S. government should set up venues for multistakeholder participation on digital policy concerns, according to the release.
