Seattle to introduce new legislation that will disable foreign-influenced corporation from participating in politics

Amazon is known to have established its political influence in its hometown of Seattle. On Monday, however, Seattle is expected to introduce new legislation that will disable political contributions by businesses that have 5% or more of its ownership under foreign entities. As per the experts, the new legislation is likely to meet with a soaring debate of corporate donations’ legality in the upcoming U.S elections.

As per the sources, Seattle City Council had its committee comprising six members approve the legislation in the past week that completely removes almost all doubts that the legislation will be signed by the nine-member council on Monday.

Amazon Had Spent $1.5 Million In November Council Elections

The new legislation is directed at restraining the political spending of businesses like Amazon. The Seattle based tech giant had spent a massive $1.5 million in the council elections of November. The funding was to support the pro-business candidates secure victory in the elections. The campaign, however, was later reported to have failed.

As of Friday, as much as 9% of Amazon’s stock is currently owned by foreign investors, according to Refinitiv’s data. While Amazon’s spokesman refused to comment on the news at this stage, Pacific Legal Foundation’s attorney, Jim Manley, however, commented and stated on the prospect of the new Seattle legislation:

“What they are proposing is likely an unconstitutional backdoor ban on U.S companies speaking about local elections.”

Citizens United Ruling Of The U.S Supreme Court Had Introduced The Ban Originally In 2010

Originally, it was the Citizens United ruling of the U.S Supreme Court in 2010 that declared limitations on companies or unions’ political spending. As per the ruling, unions and companies were allowed to spend as much as they wanted on advertisements and other promotional means, but it was forbidden for them to directly fund a political campaign.

The Seattle legislation will see a ban on companies with 5% or more of its stock owned by foreign entities, or 1% of it owned by a single foreign investor, as the lawmakers see it as a risk of foreign influence that demands a sanction on such companies’ participation in politics.

Seattle, however, isn’t the only city that plans on introducing such legislation. St. Petersburg, Florida has already disabled such businesses’ from participating in politics since 2017. The legislation, to date, has not been challenged in a court of law.