Grassley and Klobuchar reintroduce AICOA to restrict Big Tech self-preferencing
Senators Grassley and Klobuchar have reintroduced the bipartisan American Innovation and Choice Online Act (AICOA) targeting large tech platforms with over $175 billion in revenue. The legislation aims to prohibit self-preferencing and gatekeeping behaviors, though critics argue it harms innovation and consumer welfare in a manner similar to the EU's Digital Markets Act.
Key Takeaways
- Targets platforms with at least $175 billion in average annual revenue and 34% U.S. user reach.
- Prohibits companies from favoring their own services or locking users into default settings.
- Bans the use of nonpublic business-user data to copy products from smaller competitors.
- Empowers the DOJ, FTC, and state attorneys general to file civil actions against violators.
- Includes a specific carve-out stating it does not authorize regulators to dictate AI development.
Why It Matters
The reintroduction of AICOA signals a persistent legislative push to move U.S. antitrust policy beyond the traditional consumer welfare standard toward structural conduct rules. For streaming platforms, this could mandate greater interoperability and prevent OS owners like Apple or Amazon from favoring their own first-party apps in search results or device interfaces. This shift mirrors the EU's Digital Markets Act, which has already caused Apple to delay Siri AI features in Europe due to interoperability disputes. Industry leaders should watch for the bill to gain momentum in the Senate Judiciary Committee, as its passage would fundamentally alter how hardware-software ecosystems monetize third-party services. Monitoring the specific wording of 'unfair' conduct will be critical for compliance and product roadmaps.
Additional Context
The reintroduction of AICOA comes amid a flurry of antitrust activity targeting the technology sector's largest gatekeepers. Per Reuters in June 2026, the U.S. Justice Department recently cleared Paramount’s $110 billion acquisition of Warner Bros. Discovery, signaling that regulators currently view content consolidation as less of a threat to competition than the dominance of integrated platform giants like Google, Apple, and Amazon. This contrast highlights a regulatory focus on the underlying infrastructure of the digital economy rather than traditional media mergers. Simultaneously, the practical impact of similar 'gatekeeper' regulations is becoming visible in international markets. According to reports from AppleInsider and MacRumors in June 2026, Apple has officially delayed the launch of Its new Siri AI features for iOS 27 and iPadOS 27 in the European Union, citing 'unresolved concerns' over compliance with the Digital Markets Act (DMA). Apple argues that the DMA’s interoperability mandates would require granting third-party virtual assistants too much system access, potentially compromising user privacy. Domestically, high-stakes litigation continues to test existing antitrust frameworks. Per TechPolicy.press in January 2026, the FTC’s trial against Amazon is scheduled for later this year, focusing on the company’s alleged monopoly power over third-party sellers. While courts have recently shown a preference for behavioral remedies over structural breakups—as seen in the Google search decision—legislation like AICOA would provide federal agencies with a clearer statutory mandate to enforce pro-competitive conduct without relying solely on shifting judicial interpretations of 'consumer welfare.'
Read full article at americanactionforum.org
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