A Democratic-backed initiative called "Project 2029" is proposing significant regulations on Big Tech companies, drawing comparisons to Europe's stringent digital laws and risking a rift with the technology industry ahead of upcoming elections. The agenda calls for a social media ban for individuals under 16, limitations on the Section 230 tech liability shield, enhanced privacy settings, and stricter controls on AI chatbots.
One of the policy firm's co-authors, Reset Tech, received a $2 million grant in 2024 from George Soros's Open Society Foundations. This funding was specifically allocated to support the "encouraging effective enforcement" of Europe's Digital Services Act. While Project 2029 does not explicitly adopt all European regulations, its website notes that the European Union has been a leader in implementing age restrictions for social media.
Over the past two years, the European Commission has imposed fines exceeding $7 billion on major tech firms such as Meta, Google, and Apple for various infringements. Elon Musk's platform, X, has also faced scrutiny regarding alleged hate speech. Ben Scott, CEO of Reset Tech and a former adviser to Hillary Clinton, previously described the EU's Digital Services Act as a "paradigm shift in tech regulation."
Project 2029 also advocates for banning cellphones for students during school hours. The initiative has garnered support from figures such as Sen. Cory Booker (D-NJ), Gov. Mikie Sherrill of New Jersey, and American Federation of Teachers president Randi Weingarten.
Some analysts warn that a heavy-handed approach could alienate the tech industry, mirroring concerns from 2024 when some tech leaders supported former President Trump due to a perceived hostility from Democrats towards the sector. Evan Swarztrauber, a former FCC policy adviser, suggested that while Democrats risk alienating tech companies, Republicans should also be mindful of not being outflanked on consumer protection issues.
Critics argue that importing the EU's regulatory model could lead to government involvement in speech decisions, potentially conflicting with First Amendment protections. Robert Winterton, Vice President of Public Affairs at NetChoice, stated that the EU's Digital Services Act grants regulators significant leverage over platform content, which could raise free speech concerns if mirrored in the U.S.
Meta CEO Mark Zuckerberg has been a vocal critic of the EU's enforcement actions, likening the fines to a "tariff" and criticizing the Biden administration for not defending U.S. companies against foreign penalties. He suggested that when the U.S. government appears to attack its own tech industry, it creates an environment where other countries feel emboldened to do the same.
Rishi Barwhani, U.S. Director of Reset Tech, stated that concerns about online harms to children do not necessitate a trade-off between technological optimism and protecting values, arguing that such harms erode trust in the sector.
Despite the proposed measures, implementing regulations on the scale of Project 2029's proposals would likely face significant hurdles in Congress. Bipartisan legislation aimed at protecting children online has previously stalled due to disagreements over its scope and content.
Previously, the Trump administration took a stance against foreign digital service taxes and fines levied on American companies. Vice President JD Vance has characterized regulations similar to the EU's Digital Services Act as instruments of "authoritarian censorship."