Protect U.S. Companies from Foreign Regulatory Taxation Act

Summary

Prevents U.S. courts and agencies from recognizing or enforcing foreign court or agency judgments that apply foreign "digital market" rules to certain U.S. companies deemed integral to national interests, unless Congress says otherwise. It also gives the President broad authority to take actions the President considers necessary to protect those entities from adverse foreign regulatory or judicial actions, and sets definitions for covered firms and covered foreign rules.

• Bars U.S. federal or state courts and agencies from enforcing foreign judgments tied to foreign digital market regulations against certain U.S. digital platform entities unless Congress authorizes enforcement.
• Grants the President broad authority to take actions the President deems in the public interest to protect covered entities from adverse foreign regulatory or judicial actions.
• Defines key terms, including a broad definition of "foreign digital market regulation" and adoption of the EU Digital Markets Act's core platform service concept.
• Covers entities that do business with the federal government and provide core platform services, plus any entity the President designates as integral to national interests.
• Requires the President to consider consumer impacts, U.S. economic and technological security, and foreign relations when acting.
• Does not create new funding, appropriations, or specific enforcement mechanisms; it creates legal prohibitions and executive authority.
• May create legal tension with international comity and existing international agreements, and could prompt diplomatic or reciprocal regulatory responses.
• Applies to both federal and state courts and agencies, but Congress can override the non-recognition rule by statute.