image courtesy of Getty Images President Joe Biden is expected to sign an executive order targeting giant tech companies and encouraging competition. At least ten federal agencies are involved in the order, which comprises 72 acts and suggestions. The change, according to the White House, will “encourage innovation and even quicker economic growth.” Big Tech is “undermining competition,” according to a fact sheet produced by the Biden administration. 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 order, which is set to be signed on Friday afternoon, will also target a number of other sectors, according to the Biden administration. Other government agencies will be encouraged to take steps to improve competition in healthcare, tourism, and agriculture. When fully 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 would also make it easier for passengers to request airline refunds. 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.” It also aims to restrict the use of “non-compete agreements” as a condition of employment, which it believes makes it more difficult for workers to change jobs and hence reduces salaries. 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. 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 thrive – not centralised government dictates,” said Neil Bradley, the Chamber’s executive vice president and chief policy officer. “In many industries, size and scale are important not only to compete, but also to justify massive levels of investment,” he added. 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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