If some lawmakers get their way, a new proposal to America’s antitrust laws could hurt the small business community in Florida
The American Innovation and Choice Online Act (AICOA) would target online marketplaces like app stores, and search engines that Florida small businesses use to locate new customers, process payments, etc.
Supporters of the AICOA claim the legislation will help level the playing field between tech companies and small businesses. But opponents say just the opposite, that AICOA would hurt Florida’s small businesses far more than it hurts the platforms it targets.
Edward Longe who currently serves as the Director of the Center for Technology and Innovation at The James Madison Institute in Tallahassee says if certain parts of the AICOA are approved, many small companies will face a sweeping set of prohibitions.
According to Longe, what AICOA actually restricts is the recommendation infrastructure Florida small businesses depend on to reach customers they could never afford to find on their own.
For example, the algorithm that highlights a boutique in Pensacola, or routes a homeowner to a local contractor rather than a national chain, runs on customer data.
“If Congress cuts off access to that data, the rankings will be less accurate and less personal. The small business that once appeared at the top of a relevant search slides down the page behind whoever has a marketing budget,” said Longe.
Opponents of the AICOA worry if the bill is reintroduced in the past presentations, the marketplaces that Florida small businesses depend on would face restrictions that sever the very connections they were built to create.
“While Amazon is known as a marketplace for every item imaginable, it’s also a marketplace that connects over 200 million Prime Subscribers in the United States to small businesses. Once designated as a covered platform, Amazon and other platforms won’t be able to offer preferred placement, personalized rankings, or an integrated checkout. Such restrictions don’t hurt the digital commerce giants; they hurt the retailers across Florida that have built their businesses on access to those consumers,” says Longe.
