Protect U.S. Companies from Foreign Regulatory Taxation Act

This bill, titled the Protect U.S. Companies from Foreign Regulatory Taxation Act, would shield certain U.S. entities—deemed “integral to the national interests of the United States”—from foreign government attempts to regulate them through foreign digital market rules. Specifically, it prohibits U.S. courts and agencies from recognizing or enforcing foreign judgments or adverse actions related to foreign digital market regulation against these entities, unless Congress passes a law to authorize it. The President would have broad power to act in the public interest to counteract such foreign actions, guided by considerations of U.S. consumers, economic/technological security, and foreign relations. The bill also creates definitions to identify which entities and foreign regulations fall under its protections and links the concept of “foreign digital market regulation” to rules like the EU’s Digital Markets Act (DMA), while carving out exceptions for laws that are substantively similar to U.S. laws. In short, the bill seeks to preserve U.S. digital leadership and reduce the regulatory risk to U.S.-based digital platforms from foreign regulatory regimes, by limiting foreign jurisdiction over them and empowering the President to respond to foreign regulatory pressure.