Democratic House Could Boost Data Privacy Talks; Policy Approaches Differ

Having oppositely controlled chambers of Congress bodes well for bipartisan negotiation on regulating online privacy, tech trade group executives told us Wednesday. Industry allies agreed Republicans and Democrats remain far apart on specific policy. President Donald Trump in a post-election news conference said he’s open to working with Democrats on regulating social media companies, though he called Silicon Valley’s alleged anti-conservative bias a “serious problem.”

Data privacy is less a partisan topic and more a constituent-driven issue, said ACT|The App Association President Morgan Reed. He said consumers and businesses want clear engagement and rules of the road on data, but there’s also demand for cheap or free goods and services offered through data-driven models.

Tech issues offer Congress a chance to show collaborative potential in a polarized political climate, said CTA Senior Vice President-Government Affairs Michael Petricone. Privacy, infrastructure and expanding broadband to rural America are all issues with bipartisan appeal, he said. “Tech is lucky in that way.” CTA's chief sees some areas for bipartisan collaboration (see 1811070035).

There's bipartisan consensus to regulate data privacy, but approaches vary widely between parties and across chambers, said Dan Caprio, who advises executives on privacy and cybersecurity matters at the Providence Group. California Democratic Rep. Ro Khanna’s Internet Bill of Rights (see 1810310025) might be considered too heavy on process and compliance, Caprio said, which is a criticism of the EU’s general data protection regulation. Another privacy proposal (see 1811010044) from Sen. Ron Wyden, D-Ore., which includes jail time for guilty executives, also might be considered too heavy-handed for the GOP, he said. The way to regulating privacy is not necessarily to “browbeat executives,” Caprio said.

Prospects for moving privacy legislation are better than ever, said American Action Forum Director-Technology and Innovation Policy Will Rinehart, but he agreed with Caprio about the divide over regulatory approaches. The opt-in consent requirement included in Khanna’s proposal is another example of where Democrats and Republicans might differ, Rinehart said.

One key seat change Tuesday with tech implications was the victory of Missouri Attorney General Josh Hawley (R), a hawk on privacy and tech antitrust issues, over Sen. Claire McCaskill, D-Mo., one of the original co-sponsors of anti-sex trafficking legislation that became law this year (see 1804090025). Facebook and Google have drawn the ire of Hawley. Reed said the freshman will approach the tech industry with constituents in mind. Like other consumers, Missourians want clear guidelines on data protection, but they won’t want prices or products affected negatively.

Other key election results according to at least two media outlets included Sen. Ted Cruz, R-Texas, outspoken about alleged anti-conservative bias, beating Rep. Beto O’Rourke, D-Texas. Rep. Steve Chabot, R-Ohio, defeated Democratic challenger Aftab Pureval, as expected (see 1810310025). Chabot is expected to contest Rep. Doug Collins, R-Ga., for the ranking GOP seat on the House Judiciary Committee. The race between Rep. Will Hurd, R-Texas, active on information technology, artificial intelligence and quantum computing issues (see 1802140059), and Democratic candidate Gina Ortiz Jones was too close to call. The Associated Press called the race in favor of Hurd Tuesday night before retracting the prediction. Petricone said CTA supports Hurd, calling him one of Congress' most well-informed tech voices.

A Democratic majority in the House opens the door to more points of Silicon Valley criticism on Capitol Hill, Rinehart said, noting Rep. Adam Schiff, D-Calif., likely will take the helm of the House Intelligence Committee. The House Judiciary Committee, which focused heavily on alleged anti-conservative bias under retiring Bob Goodlatte, R-Va., will likely take up broader tech issues, specifically antitrust enforcement, Rinehart said. Petricone cautioned Democratic leaders like Schiff, House Judiciary ranking member Jerry Nadler, D-N.Y., and House Commerce Committee ranking member Frank Pallone, D-N.J., from spending energy on partisan investigations against the Trump administration.