The state of Maryland has taken a groundbreaking step, with its State Senate voting to approve the first U.S. tax on revenue from digital ads sold by Amazon, Facebook, Google and other major technology companies. The Senate had to override the governor’s veto to pass the measure, after its House of Delegates gave the law the greenlight. The new law is expected to generate an estimated $250 million in the first year, with money going to that state’s schools. Connecticut and Indiana have introduced similar bills to tax Big Tech companies. Read more

At the very end of his presidency, Donald Trump tried to strike down Section 230 of the Communications Decency Act, which essentially provides online platforms with immunity from liability based on third-party content. He failed, but Congress has received 20 proposals to update or change the section. On February 5, three Democratic senators introduced a bill to make social media firms accountable for enabling cyberstalking, harassment and discrimination. More recently, Senators Brian Schatz (D-Hawaii) and John Thune (R-South Dakota) plan to reintroduce the PACT Act, a proposal to jumpstart change. Read more

Bitcoin’s price surged above $50,000 for the first time yesterday as companies including Tesla, Mastercard, PayPal and BNY Mellon showed support for the cryptocurrency. Tesla bought $1.5 billion worth of Bitcoin and plans to accept it as payment for its cars, while Mastercard added that it too would accept Bitcoin as payment for “some of its products.” Coin Metrics reported that Bitcoin broke the $50,000 metric by rising 3 percent on Tuesday to $50,487, and hitting a fresh record high of $51,715 earlier today. Meanwhile, SEC commissioner Hester Peirce has called for crypto regulation. Read more

President Joe Biden is expected to sign an executive order for a 100-day review by the National Economic Council and National Security Council on the manufacturing and packaging of semiconductor chips, with a focus on supply chain blockages that have created shortages. The government review will also examine supply chain issues for other critical goods including minerals, medical supplies and high-capacity batteries. Later this year, supply chain assessments for other critical products will be conducted. Read more

Microsoft is urging the United States to adopt Australia’s proposal that Big Tech companies pay newspapers for content, in direct opposition to the positions of Google and Facebook. In Australia, that proposal is before a parliamentary committee. Google, which is responsible for 95 percent of searches in that country, has threatened to pull its search engine should the proposal become law. Microsoft is betting that, especially if the Australians pass the law, other countries will join in demanding payment for publishers. Read more