Internet Platform Funding Comparison: European Union and United States

Source: Masnick, Michael. "Don't Shoot the Message Board. How Intermediary Liability Harms Online Investment and Innovation," Copia Institute and NetChoice, June 2019
Topic: Illegal Content
Reference year: 2019
Geographical area: Global
Method: Administrative data
Link to original document:
This chart shows a funding gap in the European Union compared to the United States. The data refers to a 15-year time horizon, considering companies formed after 01 January 2000 up until the end of 2014. The results suggest that a US-based company, under the framework set forth by the Communications Decency Act, Section 230, is five times more likely to secure investment over $10 million and nearly 10 times more likely to receive investments over $100 million, as compared to internet companies in the European Union, under the more limited E-Commerce Directive. Therefore, the internet platform companies built under the Communications Decency Act, Section 230 regime are much more likely to receive the significant investment necessary to grow and succeed.