Today U.S. Senators Josh Hawley (R-Mo.) and Richard Blumenthal (D-Conn.) – the Ranking Member and the Chair of the Senate Judiciary Subcommittee on Privacy, Technology, and the Law, respectively – introduced the No Section 230 Immunity for AI Act.
This new bipartisan legislation would clarify that Section 230 immunity will not apply to claims based on generative AI, ensuring consumers have the tools they need to protect themselves from harmful content produced by the latest advancements in AI technology.
For example, AI-generated “deepfakes” – lifelike false images of real individuals – are exploding in popularity. Ordinary people can now suffer life-destroying consequences for saying things they never said, or doing things they never would. Companies complicit in this process should be held accountable in court.
“We can’t make the same mistakes with generative AI as we did with Big Tech on Section 230,” said Senator Hawley. “When these new technologies harm innocent people, the companies must be held accountable. Victims deserve their day in court and this bipartisan proposal will make that a reality.”
“AI companies should be forced to take responsibility for business decisions as they’re developing products—without any Section 230 legal shield,” said Senator Blumenthal. “This legislation is the first step in our effort to write the rules of AI and establish safeguards as we enter this new era. AI platform accountability is a key principle of a framework for regulation that targets risk and protects the public.”
The No Section 230 Immunity for AI Act would:
Amend Section 230 by adding a clause that strips immunity from AI companies in civil claims or criminal prosecutions involving the use or provision of generative AI.
Empower Americans harmed by generative AI models to sue AI companies in federal or state court.
On May 16, 2023, Senators Hawley and Blumenthal held a landmark hearing on AI oversight. All three witnesses at that hearing, including OpenAI CEO Sam Altman, agreed that Congress needed to take action, as new developments in generative AI technology – from large language models to art generators – are advancing at a breakneck pace, upending many aspects of American life.
Last week, Senator Hawley announced five guiding principles for the future of AI legislation.
Sens. Josh Hawley and Richard Blumenthal want to clarify that the internet’s bedrock liability law does not apply to generative AI, per a new bill introduced Wednesday that was shared exclusively with Axios.
Why it matters: Legal experts and lawmakers have questioned whether AI-created works would qualify for legal immunity under Section 230 of the Communications Decency Act, the law that largely shields platforms from lawsuits over third-party content.
It’s a newly urgent issue thanks to the explosive of generative AI.
The new bipartisan bill bolsters the argument that Section 230 doesn’t cover AI-generated work. It also gives lawmakers an opening to go after Section 230 after vowing to amend it, without much success, for years.
The big picture: Section 230 is often credited as the law that allowed the internet to flourish and for social media to take off, as well as websites hosting travel listings and restaurant reviews.
To its detractors, it goes too far and is not fit for today’s web, allowing social media companies to leave too much harmful content up online.
Details: Hawley and Blumenthal’s “No Section 230 Immunity for AI Act” would amend Section 230 “by adding a clause that strips immunity from AI companies in civil claims or criminal prosecutions involving the use or provision of generative AI,” per a description of the bill from Hawley’s office.
The bill would also allow people to sue companies in federal or state court for alleged harm by generative AI models.
What they’re saying: “We can’t make the same mistakes with generative AI as we did with Big Tech on Section 230,” Hawley told Axios.
“When these new technologies harm innocent people, the companies must be held accountable. Victims deserve their day in court and this bipartisan proposal will make that a reality.”
“AI companies should be forced to take responsibility for business decisions as they’re developing products—without any Section 230 legal shield,” Blumenthal told Axios. “This legislation is the first step in our effort to write the rules of AI and establish safeguards as we enter this new era.”
The other side: Some legal experts have argued that Section 230 covers generative AI, and that denying AI developers 230 protection would open them up to business-crushing lawsuits — or products that are too concerned about potential harms to be effective or usable.
Others have argued that generative AI does not get 230 protection, and that courts are likely to consider large language models like ChatGPT as “information content providers” and therefore not qualified for immunity.
Our thought bubble: Sam Altman had a good showing on Capitol Hill when he testified earlier this year and has had a positive relationship with lawmakers thus far, welcoming regulation.
But it’s hard to imagine Microsoft and OpenAI, or any company working on generative AI products, accepting such a law and opening themselves up to a torrent of lawsuits if people claim to have been hurt by something a chatbot told them.
Source: United States Senator for Vermont – Bernie Sanders
WASHINGTON, June 14 – Sen. Bernie Sanders (I-Vt.), chairman of the Senate Health, Education, Labor, and Pensions Committee, today with Congresswoman Pramila Jayapal (D-Wash.) and eight colleagues in the Senate, introduced historic legislation that would open up the dream of a college degree to millions of working-class children across the country. As millions of Americans face uncertainty around their federal student loan debt, the College for All Act of 2023 allows students to attend public colleges and universities tuition- and debt-free. It also ensures that the vast majority of students who enroll at Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), Hispanic-Serving Institutions (HSIs), Asian American and Native American Pacific Islander Serving Institutions (AANAPISIs), and other Minority-Serving Institutions (MSIs) can attend tuition- and debt-free.
First introduced in 2015, the College for All Act of 2023 would be the most substantial expansion of higher education access since the Great Society and President Lyndon B. Johnson’s Higher Education Act of 1965. Joining Sanders and Jayapal on the legislation in the Senate are Sens. Richard Blumenthal (D-Conn.), Edward Markey (D-Mass.), Jeff Merkley (D-Ore.), Chris Murphy (D-Conn.), Alex Padilla (D-Calif.), Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.). and Peter Welch (D-Vt.).
“Today, this country tells young people to get the best education they can, and then saddles them for decades with crushing student loan debt. To my mind, that does not make any sense whatsoever,” said Sanders. “In the wealthiest country in the history of the world, a higher education should be a right for all, not a privilege for the few. It is absolutely unacceptable that hundreds of thousands of bright young Americans do not get a higher education each year, not because they are unqualified, but because their family does not have enough money. In the 21st century, a free public education system that goes from kindergarten through high school is no longer good enough. The time is long overdue to make public colleges and universities tuition-free and debt-free for working families. Education is one of the keys to a successful democracy and we must make it easier, not harder, for young people to obtain the degrees they have worked so hard for.”
“As millions of borrowers wait in limbo to see if the Supreme Court will allow President Biden’s student debt cancellation plan to lift millions out of debt, Congress must work to ensure that working families never have to take out these crushing loans in the first place,” said Jayapal. “I’m proud to lead this legislation with Senator Sanders that would free students from a lifetime of debt and transform our country’s higher education system by ensuring that everyone can afford to pursue a college degree.”
This legislation would guarantee tuition-free community college for all students and allow students from single households earning up to $125,000 a year, and married households earning up to $250,000 a year, to attend college without fear of being saddled with student loan debt. If passed, the College for All Act would also:
Double the maximum Pell Grant award: $7,395 to $14,790 for the 2024-2025 school year for students enrolled at public and private non-profit colleges;
Establish a $10 billion grant program for states participating in the federal-state partnership to scale evidence-based practices and strategies;
Triple Federal TRIO funding from $1.191 billion in FY23 to $3 billion in FY24;
Double GEAR UP funding from $388 million in FY23 to $736 million in FY24; and
Double mandatory funding for Historically Black Colleges and Universities, Tribal Colleges and Universities, and other Minority-Serving institutions.
College for All is paid for by the Tax on Wall Street Speculation Act of 2023 – also introduced today by Sanders and Rep. Barbara Lee (D-Calif.) – which puts a tax of 0.5 percent on stock trades, a 0.1 percent fee on bonds, and a 0.005 percent fee on derivatives and other financial instruments. Today, dozens of countries have imposed a financial transactions tax including the United Kingdom, Germany, France, Switzerland, China, India, South Korea, Hong Kong, Singapore, Taiwan, and Brazil. The U.S. also had a Wall Street speculation tax from 1914 to 1966. In 1914, the tax was 0.02 percent on sales or transfers of stock. In 1932, Congress more than doubled that tax to help finance the government during the Great Depression. Economic analysis on this proposal has estimated that it would raise $220 billion per year or well over $2 trillion over 10 years.
Source: United States Senator for West Virginia Shelley Moore Capito
Click here or the image above to watch Ranking Member Capito’s opening remarks from the committee hearing.
WASHINGTON, D.C. – Today, the Senate Environment and Public Works (EPW) Committee held a hearing with Shailen Bhatt, administrator of the Federal Highway Administration (FHWA), to discuss implementation of the bipartisan Infrastructure Investment and Jobs Act and the Democrats’ Inflation Reduction Act.
Below is theopening statementof Ranking Member Shelley Moore Capito (R-W.Va.) as delivered.
“Thank you, Chairman Carper, for calling today’s hearing, and your ongoing willingness to conduct oversight on the IIJA and the Inflation Reduction Act.
“Administrator Mr. Bhatt, it’s very good to see you. I know that you’ve been extremely busy here over the last several days. Since your confirmation you have maintained a very open line of communication with me and my staff. And I want to express our appreciation for doing that. I also want to thank your hardworking staff at the agency. I know they work on a lot of different issues.
“I would also like to acknowledge the tragic incident on I-95 in Philadelphia, the pictures are just overwhelming. And I know you’ve been on the ground.
“I appreciate the responsiveness of FHWA in providing assistance to the state of Pennsylvania.
“I know the investigation is underway and Congress will be provided more information when it is available.
“I am proud very that this Committee, as the chairman said, developed the legislation that served as the foundation of the IIJA, and we did so together, bipartisan through regular order.
“I was proud to manage the bill on the floor with the chairman, and to attend the signing ceremony at the White House.
“Unfortunately, our bipartisan product was jeopardized, this was before you got there, by FHWA’s December 2021 policy memorandum.
“But I want to thank you, Administrator Bhatt, for issuing a substantially revised policy memorandum that superseded the original one.
“I appreciate that you recognized the original memorandum diminished the bipartisan accomplishment of this Committee and contradicted the statutory text and the clear intent of Congress.
“When the IIJA was signed into law, we promised the American people that the legislation would deliver results by improving our nation’s core transportation infrastructure, and we are starting to see real tangible benefits of that investment.
“In negotiating the legislation, I prioritized the inclusion of a robust project delivery and process improvement title that included codification of the One Federal Decision policy for surface transportation projects.
“I look forward to receiving an update from you today about how the agency is implementing those provisions and others in the IIJA.
“Proper implementation of the law is the only way to see the full benefits of the IIJA will be realized.
“Now on to the inaptly named Inflation Reduction Act, which has not, and will not, reduce inflation.
“Following passage of the IIJA, the administration embarked on a partisan exercise to pass what I believe are misguided policies through the budget reconciliation process.
“That effort began with the introduction of the so-called Build Back Better legislation in 2021, and culminated with President Biden signing the IRA into law in August of 2022.
“The original version of the reconciliation legislation included a provision that would have directed FHWA to establish a greenhouse gas emissions performance measure and associated targets.
“I challenged that provision as violating the Byrd Rule of the Congressional Budget Act, and that provision was stripped from the legislation.
“That removal of language was the second time since I became Ranking Member of this Committee that we have dealt with this policy.
“And that was the second time that Congress directly rejected FHWA the authority to establish a greenhouse gas performance measure and associated targets.
“Providing this authority to FHWA was also debated, and ultimately left out of the bipartisan IIJA.
“The Biden administration, through your agency, is now attempting, and the chairman just talked about this, to impose a greenhouse gas emissions performance measure and associated targets on state departments of transportation and metropolitan planning organizations, without any authority from Congress.
“This rulemaking feels very similar to the December 2021 policy memorandum.
“Yet again, this administration is trying to implement partisan policies they wish had been included the IIJA and the IRA through agency action.
“I am hopeful that under your leadership the rulemaking for a greenhouse gas emissions performance measure and associated targets will not move forward.
“On a related note, I also want to express my concern with a proposal that the President’s fiscal year 2024 budget request has.
“The budget request included legislative language that would repurpose $60 million in unobligated contract authority from the Transportation Infrastructure Finance and Innovation Act program, to the Active Transportation Infrastructure Investment Program.
“This is in the weeds but I know you understand what I’m talking about. The IIJA did not provide contract authority for that program.
“It received an authorization but it is subject to appropriations.
“This Committee determines what programs receive contract authority and how much, not the Department.
“I hope this is not something that your agency plans to pursue, as once again, the Committee has already made a decision here.
“Finally, I want to raise an issue that is not directly related to either of the laws that we are discussing today, but may have a significant impact on how state DOTs manage their programs and their ability to move forward.
“I am referring to the $3.5 billion discrepancy in contract authority between the two financial management systems, known as FMIS and Delphi.
“I appreciate that you brought this issue to my attention in January and look forward to receiving an update from you on how DOT plans to resolve this discrepancy.
“In summary, the topics of our hearing today starkly contrast the different outcomes in quality and durability. We get great quality and durability when the Senate pursues bipartisan legislation through regular order.
“And we compare that to a partisan legislation through budget reconciliation process that believe falls short. Nevertheless, oversight of your implementation of these two laws is a critical function of this committee.
“I would like to take one moment to say farewell to a much beloved and incredible member of our staff over here, the Republican staff at EPW. Lauren Baker will be leaving us. I don’t know if it’s today or tomorrow but way too soon.
“And she really helped to shepherd the IIJA through our committee. She is an incredible resource. I know she’ll be successful where she goes. But Lauren, we will miss her and I know your department will miss her as well because of the great give and take that we’ve been able to have with her and through your department. So thank you for letting me bid Lauren a fond farewell.”
Source: United States Senator for West Virginia Shelley Moore Capito
WASHINGTON, D.C. – Today, the Senate Environment and Public Works (EPW) Committee held a business meeting to consider the nomination of Jeff Baran to serve another term on the Nuclear Regulatory Commission (NRC).
Ranking Member Shelley Moore Capito (R-W.Va.) led Republicans in voting against Baran, saying, “His votes and positions simply do not align with enabling the safe use of nuclear technologies that the NRC is expected to undertake in the coming years…his confirmation would not align with an increasing role for nuclear energy that so many of us support, including through efforts such as the ADVANCE Act.”
Below is a portion of Ranking Member Capito’s opening statement as delivered.
“We are here again this morning to consider, as we heard, the re-nomination of Jeff Baran to serve as a member of the Nuclear Regulatory Commission.
“Two weeks ago, the Committee supported the bipartisan Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy, the ADVANCE Act, by a resounding 16-to-3 vote.
“So we are committed to the ADVANCE Act, which will help position the United States as the undisputed global leader of nuclear energy, including the next generation of advanced reactors.
“Commissioner Baran’s nearly nine-year record shows that he is not the right person for the NRC, especially at this critical time for nuclear energy and the emergence of new technologies.
“His votes and positions simply do not align with enabling the safe use of nuclear technologies that the NRC is expected to undertake in the coming years.
“Throughout his past nomination processes, he has a history of telling the Committee he supports advanced nuclear, and then not doing so once he’s in office.
“I will not belabor the point now that I believe has been made before, including at the last business meeting.
“Instead, I ask unanimous consent for my opening statement from our last business meeting last week, as well as a letter of opposition from several pro-nuclear organizations, to be entered into the record.
“Based on his record, I will oppose his nomination.”
Source: United States Senator for West Virginia Shelley Moore Capito
WASHINGTON, D.C. — Today, U.S. Senator Shelley Moore Capito (R-W.Va.) joined seven U.S. Senate colleagues to introduce legislation to prohibit the Biden administration from banning gas stoves. The Save Our Gas Stoves Act – led by U.S. Senator Dan Sullivan (R-Alaska) – explicitly prohibits the U.S. Department of Energy (DOE) from implementing a proposed rule that would impose intrusive and costly standards on the kitchen stovetops of millions of Americans. Companion legislation was introduced in the House by Representative Debbie Lesko (R-Ariz.).
“The current administration has shown time and time again that they are anti-energy, but now they are trying to dictate what people can use in their kitchen by proposing a rule that would essentially ban gas stoves,” Senator Capitosaid. “I’m proud to join my Senate colleagues in introducing this legislation that will stop government overreach and prohibit the Department of Energy from implementing rules that would force consumers to buy a kitchen product based on the energy source and not based on what makes the most sense economically. I will continue to fight regulations and policies that are disconnected from reality and could ultimately harm Americans economically.”
Source: United States Senator for North Carolina Thom Tillis
WASHINGTON, D.C. – Senator Thom Tillis introduced the Continue VET-TEC Authorization Act of 2023 to extend and expand the VET-TEC, Veteran Employment Through Technology Education Courses, program which provides an alternative educational opportunity for veterans interested in pursuing a career in technology. The current program is set to expire at the end of this year.
“The VET-TEC pilot program has a proven track record of opening the door for thousands of veterans to start careers in the technology field,” said Senator Tillis. “We must be doing everything we can to provide good job opportunities for our nation’s veterans, and I’m honored to co-sponsor this legislation to reauthorize VET-TEC.”
BACKGROUND:
Since 2017, more than 12,000 veterans have taken part in the VET-TEC program. As of February 2023, the program has an 84% graduation rate, a 64% employment rate, and an average salary of $65,061. VET-TEC graduates often end up being employed by software, defense, and tech companies with potential for high job growth.
The Continue VET-TEC Authorization Act of 2023 would:
Reauthorize the VET-TEC program for five years (2023-2028)
Expand annual enrollment for the program to from 2,000 to 6,000 to accommodate more students
Enable institutions of higher education to participate in the program under the same guidelines as current VET-TEC providers
Source: United States Senator Marsha Blackburn (R-Tenn)
WASHINGTON, D.C. – Following a recent announcement that Uber will allow minors to request rides and travel without an accompanying adult, U.S. Senators Marsha Blackburn (R-Tenn.), Richard Blumenthal (D-Conn.), Josh Hawley (R-MO), and Jon Ossoff (D-Ga.) called on ride-hailing apps Uber and Lyft to take additional steps to prevent their services from being used to transport victims of human trafficking.
Reports from survivors, advocates, and local law enforcement agencies indicate that apps like Uber and Lyft are increasingly used as vehicles for exploitation.
In letters to the CEOs of both companies, the senators wrote, “we are concerned that the measures taken to date are insufficient to address trafficking on the company’s ride-hailing service.”
The bipartisan group of senators is seeking additional information about what steps each company is taking to combat trafficking on its app, including what kind of training and resources are available for drivers to recognize and respond to trafficking.
The text of the letter to Uber is available here. The text of the letter to Lyft is available here.
Reps. Davidson and Eshoo to Introduce The Protecting Americans’ Data from Foreign Surveillance Act in the House
Washington, D.C. – U.S. Senator Ron Wyden, D-Ore., and Sen. Cynthia Lummis, R-Wyo., today introduced legislation to protect Americans’ data from being exploited by unfriendly foreign nations, and apply tough criminal and civil penalties to prevent employees of foreign corporations like TikTok from accessing U.S. data from abroad.
The Protecting Americans’ Data from Foreign Surveillance Act of 2023 is co-sponsored by Sen. Sheldon Whitehouse, D-R.I., Sen. Bill Hagerty, R-Tenn, Sen. Martin Heinrich, D-N.M., and Sen. Marco Rubio, R-Fla. Rep. Warren Davidson, R-Ohio, and Rep. Anna Eshoo, D-Calif., are introducing the legislation in the House of Representatives.
“Massive pools of Americans’ sensitive information — everything from where we go, to what we buy and what kind of health care services we receive — are for sale to buyers in China, Russia and nearly anyone with a credit card,” Wyden said. “Our bipartisan bill would turn off the tap of data to unfriendly nations, stop TikTok from sending Americans’ personal information to China, and allow nations with strong privacy protections to strengthen their relationships.”
“The privacy and security of our data is essential to the freedoms we hold dear. If foreign adversaries can access our data, they can control it. We need to ensure the data that people in Wyoming put online is not available to nations that threaten our safety and security. With this bipartisan legislation, we will ensure that companies like TikTok are not funneling your personal data to those adversaries,” said Senator Lummis.
“Data brokers dolling out Americans’ personal information to companies in foreign nations can be more than a violation of privacy – it can be a serious national security threat,” said Senator Whitehouse. “We need sensible rules of the road to prevent our personal data from falling into the wrong hands.”
“The ability for foreign companies to legally obtain Americans’ sensitive and private information undermines national security and infringes personal privacy,” said Senator Hagerty. “I’m pleased to work with my colleagues to protect Americans’ personal data from being weaponized by adversaries.”
“We don’t export advanced technologies or weapon systems to our adversaries for good reason. We shouldn’t allow data brokers to export Americans’ personal data either,” Senator Heinrich said. “This bill would protect Americans’ health care records, geolocations, web browsing activity, and other information from adversaries who could use it for nefarious purposes. Increasingly, data is the new gold – and we need to treat it accordingly.”
“It is common sense to prevent our adversaries from obtaining the highly sensitive personal information of millions of Americans. We cannot trust private companies to protect Americans’ private data, especially given how many of them do business in China. Our bill would address this massive national security threat and protect Americans’ privacy,” said Senator Rubio.
“Freedom surrendered is rarely reclaimed. This bipartisan legislation represents progress on the effort to protect privacy by banning the export of sensitive personal data. Our data has been sold, hacked, stolen, and exploited by foreign entities—Congress is fighting back,” said Rep. Warren Davidson.
“Today, there are no laws preventing foreign companies from purchasing and sharing large quantities of Americans’ personal data,” said Rep. Eshoo. “Our national security is at risk, and the bipartisan Protecting Americans’ Data from Foreign Surveillance Act will stop the export of large amounts of Americans’ personal information to foreign adversaries and preserve Americans’ right to privacy.”
In April 2021, Director of National Intelligence Avril Haines warned of the threat posed by unrestricted commercial data sales: “There’s a concern about foreign adversaries getting commercially-acquired information as well, and [I] am absolutely committed to trying to do everything we can to reduce that possibility.”
The Protecting Americans’ Data From Foreign Surveillance Act of 2023 updates the previously introduced bill to include new protections against foreign-owned companies like TikTok accessing U.S. data from abroad, or sending data to unfriendly foreign nations. This bill:
Directs the Secretary of Commerce, in consultation with other key agencies, to identify categories of personal data that, if exported, could harm U.S. national security.
Directs the Secretary of Commerce to compile a list of low-risk countries, where data can be shared without restrictions, a list of high-risk countries where exports of sensitive data will be blocked, and create a system to issue licenses for data exports to nations not on either list. The risk status of countries will be determined based on:
the adequacy and enforcement of the country’s privacy and export control laws
the circumstances under which the foreign government can compel, coerce, or pay a person in that country to disclose personal data
whether that foreign government has conducted hostile foreign intelligence operations against the United States.
In addition to regulating bulk exports, the bill also regulates all exports of personal data by data brokers and firms like TikTok directly to restricted foreign governments, to parent companies in restricted foreign countries and to persons designated on the Bureau of Industry and Security’s Entity List.
Exempts from the new export rules data encrypted with NIST-approved technology.
Ensures the export rules do not apply to journalism and other First Amendment protected speech.
Applies export control penalties to senior executives who knew or should have known that employees below them were directed to illegally export Americans’ personal data.
The bill has been endorsed by the Electronic Privacy Information Center, the R Street Institute and Justin Sherman, senior fellow and data brokerage research lead, and David Hoffman, professor of cybersecurity policy, Duke University Sanford School of Public Policy, experts on the sale and exploitation of Americans’ data.
Washington, D.C. – U.S. Senators Ron Wyden (D-Ore.) and Elizabeth Warren (D-Mass.) said today they have sent a letter to the Justice Department, raising serious concerns about the deal announced between the PGA Tour and the Saudi Arabian Public Investment Fund to consolidate global golf-related business, including LIV Golf.
In their letter to Attorney General Merrick Garland and Jonathan Kanter, Assistant Attorney General for the Antitrust Division of the Department of Justice, Wyden and Warren call on DOJ’s Antitrust Division to closely scrutinize the PGA-LIV deal and oppose it if it would reduce competition in violation of antitrust law.
“The PGA-LIV deal would make a U.S. organization complicit – and force American golfers and their fans to join this complicity – in the Saudi regime’s latest attempt to sanitize its abuses by pouring funds into major sports leagues… Significantly, the deal appears to have a substantial adverse impact on competition, violating several provisions of U.S. antitrust law, regardless of whether the deal is structured as a merger or some sort of joint venture,” Wyden and Warren wrote.
The senators note that the proposed PGA-LIV deal would allow Saudi Arabia to “sportswash” its egregious human rights record which includes routinely harassing and harshly prosecuting individuals for peaceful expression or association; executing individuals (including children) for robbery and drug-related crimes after rigged trials, increasingly including through mass executions; and directing the extrajudicial murder of U.S. resident Jamal Khashoggi.
The senators raise serious concerns that the proposed PGA-LIV deal would violate several provisions of antitrust law:
Section 1 of the Sherman Act criminalizes actions “in restraint of trade or commerce,” including collusive schemes like price fixing, wage fixing, and market allocation. The PGA-LIV deal, as described in the June 6 announcement, would be a clear violation if it is a joint venture, giving PGA Tour and PIF control over all significant aspects of U.S. commercial golf operations, including contracts with U.S. golfers and their opportunities to compete, television rights, cost of attendance to elite golf events, and merchandise.
Under Section 2 of the Sherman Act, it is also illegal “to monopolize any part of … trade or commerce.” The point of the deal is, as PGA Tour has stated, “the removal of rivalry,” “to take the competitor off the board,” and “to be able to control the direction going forward.” These public statements unmistakably communicate the PGA Tour’s intentions, which are to monopolize professional golf operations in the U.S. and around the world.
Section 7 of the Clayton Act prohibits mergers and acquisitions that may “substantially lessen competition” or “create a monopoly.” The PGA Tour brazenly announced the deal as an agreement to “merge commercial operations under common ownership.”
“This deal deserves serious and urgent attention by U.S. antitrust agencies,” the senators wrote. “We urge the DOJ and the Antitrust Division to allocate sufficient resources to closely scrutinize the proposed deal including a careful review of the overt monopolistic goals of the parties and the potential consequences of the PGA Tour and LIV’s complete control over professional golf in the United States.”
