On Friday, July 9, President Joe Biden signed an Executive Order (“Order”) entitled “Promoting Competition in the American Economy.” The Order outlines 72 actions by 12 federal agencies aimed at promoting competition throughout the U.S. economy and providing small businesses an opportunity to compete against dominant market actors.
The motivation behind the executive action, according to the Order, is to enhance competition in what President Biden believes is “excessive market concentration [which] threatens basic economic liberties, democratic accountability and the welfare of workers, farmers, small businesses, startups and consumers. Such concentration, it says, has reduced employee wages and working conditions, made success difficult for small farmers, allowed information technology platforms to exclude market entrants, increased the cost of health care options, increased broadband costs and generally reduced innovation.
The Order charges various federal agencies to protect competition by (1) policing unfair business practices, (2) conducting oversight of mergers and acquisitions, (3) issuing rules and (4) compelling disclosure of information. The Order also says these agencies can promote competition through their procurement processes.
Click here for a full summary and analysis of the Order.