Protect U.S. Companies from Foreign Regulatory Taxation Act

Summary

Prohibits U.S. federal or state courts and agencies from recognizing or enforcing foreign judgments or agency orders that arise from specified foreign "digital market" regulations against U.S. entities deemed "integral to the national interests of the United States," unless Congress says otherwise. It also authorizes the President to take actions he or she deems in the public interest to protect those entities from adverse foreign-court-or-agency actions tied to foreign digital market regulation, requiring the President to consider effects on consumers, economic and technological security, and foreign relations. The bill defines key terms, including what counts as a "foreign digital market regulation" (explicitly including the EU Digital Markets Act) and which entities are "integral" (for example, entities that do business with the federal government and provide certain core platform services). It does not appropriate funds, set deadlines, or create reporting or rulemaking requirements; it instead creates a legal shield and a broad presidential authority to counter specified foreign regulatory actions affecting covered digital-sector entities.

• Blocks U.S. federal and state courts and agencies from recognizing or enforcing foreign judgments or orders tied to defined foreign "digital market" regulations against covered entities unless Congress allows it.
• Grants the President broad authority to take actions deemed in the public interest to protect covered entities from adverse foreign-court-or-agency actions related to such foreign regulations.
• Defines covered foreign rules broadly (including the EU Digital Markets Act) and lists specific compelled actions—like forced disclosure of proprietary algorithms or mandated interoperability—that trigger the shield.
• Defines "entities integral to the national interests" to include firms doing business with the federal government that provide core platform services and face foreign digital-market requirements, and allows presidential designation of others.
• Requires the President to weigh impacts on U.S. consumers, economic/technological security, and foreign relations when using protective authority.
• Contains no appropriation, no specific implementation timeline, no reporting or rulemaking obligations, and no statutory penalties or private-rights remedies.
• Raises potential cross-border legal and diplomatic tensions by singling out foreign regulatory actions for nonrecognition and by expressly including the EU Digital Markets Act.