Scott Lawrence Fitzgerald, U.S. Representative of Wisconsin's 5th congressional district | Official U.S. House headshot
Scott Lawrence Fitzgerald, U.S. Representative of Wisconsin's 5th congressional district | Official U.S. House headshot
Congressman Scott Fitzgerald has introduced two legislative measures aimed at protecting U.S. businesses from foreign regulations, specifically targeting the European Union's Digital Markets Act (DMA) and Corporate Sustainability Due Diligence Directive (CSDDD).
The first bill, titled the Protect U.S. Companies from Foreign Regulatory Taxation Act, seeks to exempt American companies from compliance with certain international digital market regulations like the EU’s DMA. Congressman Fitzgerald stated, "Foreign countries have tried to take advantage of U.S. businesses by implementing tariff-like regulations, such as the EU’s Digital Markets Act, to appropriate the U.S. tax base for their own benefit." He emphasized that these regulations threaten American innovation and weaken the economy.
Morgan Reed, President of ACT | The App Association, expressed support for this legislative effort: “Addressing the negative effects of the Digital Markets Act (DMA) on small businesses has been a priority for the App Association.” Reed noted that while targeting big tech firms, these regulations also negatively impact smaller tech companies reliant on global online marketplaces.
The DMA mandates that designated "gatekeeper" companies comply with specific requirements or face significant fines. Critics argue that this regulation disproportionately affects American companies and could lead to substantial losses in research and development investments.
The second piece of legislation is called the Prevent Regulatory Overreach from Turning Essential Companies into Targets Act of 2025 (PROTECT USA Act of 2025). This bill aims to protect U.S. companies from having to adhere to extraterritorial EU regulations like CSDDD. Congressman Fitzgerald described these directives as burdensome foreign mandates threatening American business interests.
Amanda Eversole from API supported this initiative by stating: “We thank Rep. Fitzgerald for introducing legislation to protect American interests from extra-territorial regulations that threaten U.S. competitiveness.”
The CSDDD requires comprehensive environmental and social impact assessments and compliance with stringent climate targets by affected companies, potentially imposing financial penalties for non-compliance.
Senator Bill Hagerty has introduced a companion bill in the Senate supporting these initiatives.
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