H.R. 4278 — Protect U.S. Companies from Foreign Regulatory Taxation Act

This section states congressional findings on the importance of U.S. leadership in international commerce, digital infrastructure, artificial intelligence and emerging technologies, economic growth, government efficiency, job creation, and national security, as well as the threats posed by certain foreign regulations and restrictions.

This section prohibits Federal and State courts and agencies from recognizing or enforcing judgments by foreign courts or agencies against entities integral to U.S. national interests related to foreign digital market regulations, unless authorized by an Act of Congress. The section further authorizes the President to take actions determined to be in the public interest to protect such entities from adverse foreign actions, considering impacts on (1) U.S. consumers and businesses, (2) U.S. economic and technological security, and (3) U.S. foreign relations, including international commitments.

This section defines six terms for purposes of the Act: (1) "core platform service," as given in article 2 of chapter I of the Digital Markets Act; (2) "Digital Markets Act," meaning EU Regulation 2022/1925 on contestable and fair markets in the digital sector (or successor); (3) "end-user," as defined in section 301 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8541); (4) "entity integral to the national interests of the United States," meaning an entity that does business with the federal government, is organized under state law, provides a core platform service, and complies with a foreign digital market regulation—or as otherwise determined by the President; (5) "foreign digital market regulation," meaning a foreign law, regulation, or legal instrument requiring actions such as interoperability, disclosure of protected information, data restrictions, promotion of rivals, or cessation of operations without fault (including the Digital Markets Act), excluding measures substantively similar to U.S. law; and (6) "State," meaning any state, the District of Columbia, or U.S. territory or possession.