United States of America: Platform Competition and Opportunity Act of 2021 introduced to U.S. Senate

The Platform Competition and Opportunity Act of 2021 is introduced to the Senate (S.3197) on 4 November 2021. It represents the Senate companion of the one introduced to the U.S. House on 6 June 2021. The act aims to restrict platforms in the acquisition of competitors in their line of business. Under the bill, designated platform operators must prove that an acquisition is not a direct competitor, even if only a nascent one, nor that the acquisition would enhance the platform operator's market position or the defensibility of it. The platforms covered under this bill would be designated by the Federal Trade Commission (FTC) or the Department of Justice (DOJ). Criteria for the designation include platforms with more than 50 million US-based users, more than 100'000 US-based business users, a market capitalization of more than USD 600 billion or a critical trading partner for any good sold via its platform. The DOJ and FTC may designate entities as covered platforms if the aforementioned criteria are met, a designation that will apply for 10 years.