Page 28 - bon-dia-aruba-20210710

A28 u.s. news
Diasabra 10 Juli 2021

Biden signs competition order targeting big business

(AP) — President Joe for greater scrutiny of merg-
Biden signed an executive ers, “especially by dominant
order on Friday targeting internet platforms, with par-
what he labeled anticom- ticular attention to the acqui-
petitive practices in tech, sition of nascent competitors,
health care and other serial mergers, the accumula-
parts of the economy, de- tion of data, competition by
claring it would fortify an ‘free’ products, and the effect
American ideal “that true on user privacy.”
capitalism depends on fair
and open competition.” In his executive order, Biden
also calls on the Federal Mar-
The sweeping order includes itime Commission to take
72 actions and recommenda- action against shippers that it
tions that Biden said would says are “charging American
lower prices for families, in- exporters exorbitant charges”
crease wages for workers and and the Surface Transporta-
promote innovation and fast- tion Board to require railroad
er economic growth. Howev- track owners to “strengthen
er, new regulations that agen- their obligations to treat oth-
cies may write to translate his er freight companies fairly.”
policy into rules could trigger
major legal battles. The White House argues
that rapid consolidation and
The order includes calls for sharp hikes in pricing in the
banning or limiting noncom- shipping industry have made
pete agreements to help boost it increasingly expensive for
wages, allowing rule changes tional executive order,” said arguing that the order would ban or limit such agreements, U.S. companies to get goods
that would pave the way for Daniel Crane, a law professor stifle economic growth just ban unnecessary occupation- to market. In 2000, the larg-
hearing aids to be sold over at the University of Michi- as the U.S. economy is re- al licensing restrictions and est 10 shipping companies
the counter at drugstores gan who focuses on antitrust. covering from the coronavi- strengthen antitrust guidance controlled 12% of the mar-
and banning excessive early “This is a very broad and am- rus pandemic. to prevent employers from ket. They now control about
termination fees by internet bitious policy agenda for the collaborating to suppress 82%, according to the Journal
companies. It also calls on the Biden administration that of- “Some of the actions an- wages or reduce benefits by of Commerce.
Transportation Department fers lots of insights on the ad- nounced today are solutions sharing wage and benefit in-
to consider issuing rules re- ministration’s direction and in search of a problem,” said formation with one another. The World Shipping Coun-
quiring airlines to refund fees priorities, but there could be Jay Timmons, president and cil, an industry trade group,
when baggage is delayed or many a slip between the cup CEO of the National As- Noncompete agreements of- pushed back in a statement
in-flight services are not pro- and the lip.” sociation of Manufacturers. ten stop workers in a variety that “normalized demand,
vided as advertised. “They threaten to undo our of industries from going to not regulation,” is the way to
Biden’s order includes a progress by undermining free other employers for higher answer rising costs.
At a White House sign- flurry of consumer-pointed markets and are premised pay. Biden noted that in some
ing ceremony, Biden said of initiatives that could poten- on the false notion that our states even fast food franchis- “There is no market con-
some in big business: “Rath- tially lead to new federal reg- workers are not positioned es include such clauses for centration ‘problem’ to ‘fix,’
er than competing for con- ulations, but it also includes for success.” low-wage workers. and punitive measures lev-
sumers they are consuming plenty of aspirational lan- ied against carriers based on
their competitors; rather than guage that simply encourages The order seeks to address “Come on, are there trade se- incorrect economic assump-
competing for workers they agencies to take action meant noncompete clauses — an is- crets about what’s inside the tions will not fix the conges-
are finding ways to gain the to bolster worker and con- sue affecting some 36 million patty?” Biden said. tion problems,” said John
upper hand on labor.” sumer protections. to 60 million Americans, ac- Butler, president and CEO of
cording to the White House The order also takes aim at the council.
“Let me be clear: Capitalism Business and trade groups — by encouraging the Fed- tech giants Facebook, Google,
without competition isn’t quickly expressed opposition, eral Trade Commission to Apple and Amazon by calling The order also notes that over
capitalism. It’s exploitation,” the past two decades the U.S.
he said. has lost 70% of the banks it
once had, with around 10,000
The White House said bank closures. Communities
Biden’s order follows in the of color and rural areas have
tradition of past presidents been disproportionately af-
who took action to slow fected.
corporate power. Theodore
Roosevelt’s administration To begin addressing the
broke up powerful trusts that trend, the order encourages
had a grip on huge swaths the Justice Department as
of the economy, including well as the Federal Reserve,
Standard Oil and J.P. Mor- the Federal Deposit Insur-
gan’s railroads. Franklin D. ance Corporation and the
Roosevelt’s administration Office of the Comptroller
stepped up antitrust enforce- of the Currency to update
ment in the 1930s. guidelines to provide greater
scrutiny of mergers. It also
But experts noted that encourages the Consumer
Biden’s sprawling presiden- Financial Protection Bureau
tial initiative is hardly a man- to issue rules allowing cus-
date on competition. tomers to download their
banking data and take it with
“This is really more of a blue- them when they switch.
print or agenda than a tradi-