image courtesy of Getty Images President Joe Biden has issued an executive order aimed at squeezing giant tech companies but also encouraging competition. Mr. Biden’s decision reflects his desire for stronger oversight of Big Tech, which the administration has accused of “undermining competition.” “Capitalism isn’t capitalism if there isn’t competition. “It’s exploitation,” Biden stated at the signing session on Friday. The directive calls for eleven agencies to take 72 measures and make recommendations. It implies that issues have occurred as a result of huge digital companies acquiring excessive amounts of personal data, buying up potential competitors, and competing unfairly with small enterprises. It makes several recommendations, including: Mergers in the tech sector are being scrutinized more closely. The Federal Trade Commission (FTC) will issue new data gathering rules. On-line markets are prohibited from using unfair competitive practices. The decree will also affect a number of other industries, according to the Biden administration. Other government agencies are encouraged to take steps to improve competition in healthcare, tourism, and agriculture. When completely implemented, it would allow for the sale of hearing aids over the counter, as well as the elimination of early termination fees from internet contracts. It also aims to make it easier for passengers to get airline reimbursements. Bills aimed towards Big Tech have been introduced in the United States. Biden backs a compromise on infrastructure. According to the White House fact sheet, “business consolidation has been accelerating for decades,” and the order is “a whole-of-government effort to foster competition in the American economy.” The order, according to Mr. Biden, aims to minimize the use of “non-compete agreements” as a condition of employment, which he claims makes it more difficult for individuals to change jobs and thereby limits earnings. The executive order, on its own, does not guarantee that these proposals will be implemented right away. The adjustments must be implemented by the government entities involved, and some portions may be challenged in court. Biden is on a warpath, and he’s set his eyes on Big Tech. There is no better illustration of shattered competitiveness than Silicon Valley, according to Biden. The executive order’s “information sheet” doesn’t identify companies by name, but it’s apparent which ones he’s referring to. Big Tech has long been accused of undertaking “killer acquisitions,” or buying out competitors. It’s something the president wants to reduce, so mergers will be scrutinized more closely in the future. Other concerns of Big Tech are also discussed in the information sheet. It explains how big online retail platforms can monitor how tiny businesses’ products sell and utilize that information to develop their own rival products. Biden is clearly referring to Amazon in this statement, something the business has long disputed. These executive orders, on the other hand, are toothless. They aren’t going to introduce a new competitive system overnight. But it’s the president’s clearest path forward that we’ve seen so far. Biden believes that Big Tech is excessively powerful, and he wants to do something about it. The order was criticized by the US Chamber of Commerce, which said it was “based on the false notion that our economy is over-concentrated, stagnant, and fails to produce private investment needed to stimulate innovation.” “Our economy needs both large and small businesses to prosper – not centralised government mandates,” said Neil Bradley, the Chamber’s executive vice president and chief policy officer. Size and scale are vital in many industries, not only to compete, but also to justify large amounts of investment,” he noted. It comes just weeks after the House Judiciary Committee approved a slew of antitrust proposals that could eventually become law, forcing giant internet companies to restructure or possibly break up their operations. Several lawsuits have been filed against some tech companies, alleging that they have broken competition laws and engaged in anti-competitive behavior. Joe Biden is a former Vice President of the United States Competition law in the United States/n
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