Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Biden signs order to tackle corporate abuses across U.S. economy

Stock MarketsJul 10, 2021 01:26AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Signage is seen at the Federal Trade Commission headquarters in Washington, D.C., U.S., August 29, 2020. REUTERS/Andrew Kelly 2/2

By Nandita Bose, Jarrett Renshaw and Diane Bartz

WASHINGTON (Reuters) -President Joe Biden signed a sweeping executive order on Friday to promote more competition in the U.S. economy, urging agencies to crack down on anti-competitive practices in sectors from agriculture to drugs and labor.

If fully implemented, the effort will help lower Americans' internet costs, allow for airline baggage fee refunds for delayed luggage, among other steps.

The order instructs antitrust agencies to focus on labor, healthcare, technology and agriculture as they address a laundry list of issues that have irritated consumers, and in the case of drug prices, has bankrupted some.

"No more tolerance of abusive actions by monopolies. No more bad mergers that lead to massive layoffs, higher prices and fewer options for workers and consumers alike," Biden said at a White House signing ceremony.

The president noted areas where advocates feel that prices are too high, wages are tamped down or new businesses excluded from competition. "Let me be very clear, capitalism without competition isn't capitalism, it's exploitation," he said.

The White House says the rate of new business formation has fallen by almost 50% since the 1970s as large businesses make it harder for Americans with good ideas to break into markets.

Biden's action goes after corporate monopolies across a broad swath of industries, and includes 72 initiatives he wants more than a dozen federal agencies to act on.

Lower wages caused by lack of competition are estimated to cost the median American household $5,000 per year, according to a White House fact sheet that cites research from the American Economic Liberties Project - an influential Washington-based anti-monopoly group.

The initiatives will no doubt kick off a series of fights with the affected industries.

The powerful U.S. Chamber of Commerce issued a statement saying the move "smacks of a 'government knows best' approach to managing the economy" and pledged to "vigorously oppose calls for government-set prices, onerous and legally questionable rulemakings, efforts to treat innovative industries as public utilities, and the politicization of antitrust enforcement."

INTERNET, HEARING AIDS

Among the administration's plans to open up the U.S. economy are new rules to mandate ending excessive internet contract termination fees, allow hearing aids to be sold over the counter and end non-compete clauses for millions of workers and many occupational licensing requirements.

Biden's order pushes the Agriculture Department to act to stop what the White House called "abusive practices of some meat processors," reacting to farmers and ranchers who sometimes say they face too few buyers for their animals.

The administration also seeks to make it easier for customers to switch banks and take their transaction data with them, and restore net neutrality rules that require companies to treat all internet services equally.

Reuters first reported Biden's plan to issue a competition executive order in late June and subsequently published stories on how it will impact industries such as farm equipment manufacturers, banking, rail and sea shipping.

The executive order will direct the Department of Justice and Federal Trade Commission (FTC) to carefully review mergers, and to challenge prior deals that have closed.

It directs the FTC to issue rules to address competition concerns from Big Tech companies, Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL)'s Google and Amazon (NASDAQ:AMZN), and limit "killer acquisitions" where large internet platforms acquire potential competitors.

FTC Chair Lina Khan and the acting head of the U.S. Justice Department Antitrust Division, Richard Powers, said Friday that they would soon launch a review of merger guidelines to determine if they are "overly permissive."

On prescription drugs, it aims to lower prices for consumers by allowing importation of drugs from Canada, where they are cheaper. It also urges the Department of Health and Human Services to draw up a plan to fight high drug prices, and gouging.

Evercore/ISI analyst Michael Newshel said in a research note that the impact of allowing imports from Canada on pricing would be limited given Canada's limited drug supply and that Canada has indicated in the past that it would not cooperate with any program. He said the government's decision to turn to executive orders on drug pricing was surprising given ongoing legislative efforts in Congress.

The executive order also establishes a White House Competition Council, led by the Director of the National Economic Council and including many cabinet secretaries, to monitor progress.

Biden signs order to tackle corporate abuses across U.S. economy
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (17)
Rick Baier
Rick Baier Jul 11, 2021 10:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This coming from a government that spends 100-200 dollars on a hammer?
Bright Heflide
Bright Heflide Jul 10, 2021 1:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I want want to help the investing in your earliest can I have your number
Forex Harbingers
Forex Harbingers Jul 10, 2021 9:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oh look! Another Trump policy that was executive order waxed, only to be reinstated under a shiny new title.
Tom Lemon
Tom Lemon Jul 10, 2021 9:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
except trump didnt do that. only thing trump did was change the name of NAFTA and manipulate the stock market with bogus lies about a fake tariff war with china. there was never a tariff war with china nor was there any sort of trade war.
Bright Heflide
Bright Heflide Jul 10, 2021 7:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
💕💖💕💖💕💖💙
Kevin Tortoise
Kevin Tortoise Jul 10, 2021 5:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
He's more populist than Donald Trump who was a silly conman.
clint culwell
clint culwell Jul 10, 2021 5:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'd speak but freedom of speech in america died.
Tom Lemon
Tom Lemon Jul 10, 2021 5:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
where did it die? private companies have always been allowed to write their rule for behavior. trump can still freely speak. too bad no one wants to hear his whiny babbling or lies. he is rich so he can afford to start his own social media company. he can ask for donations too.
clint culwell
clint culwell Jul 10, 2021 5:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'd speak but freedom of speech in america died.
Mohd Asmadibin Ramli Ramli
Mohd Asmadibin Ramli Ramli Jul 10, 2021 3:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes true man much be help
Bellamy Fernades
Bellamy Fernades Jul 09, 2021 11:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yes very poor
MuraliKrishna Brahmandam
MuraliKrishna Brahmandam Jul 09, 2021 9:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Only I know how to solve this conundrum. Learn from me
palmer gossett
palmer gossett Jul 09, 2021 9:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
since no one on here likes capitalism, just stay poor and whine whine whine
MuraliKrishna Brahmandam
MuraliKrishna Brahmandam Jul 09, 2021 9:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
All companies are gangs organized to profit at any cost no matter what. governments are the same. people have to organise themselves to protect themselves from Companies and governments alike
Todd Gray
Todd Gray Jul 09, 2021 6:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Those big corporations have a knack for corrupting employees all the way down to the lowest levels of employment. To keep, or advance in a job at one, you pretty much have to pledge allegiance to the company by destroying your fellow countrymen & countrywomen who work for a competing company. In that process, those corps mold their employees into mercenary psychopaths.
Christian Lewis
Christian Lewis Jul 09, 2021 3:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Republican would give away their own kids if it meant owning the libs lol
Martin Lewis
Martin Lewis Jul 09, 2021 3:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ironic you say that, considering the democrat party is the party that literally advocates aborting their own children.
Tony Huynh
Tony Huynh Jul 09, 2021 3:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
martin, and Republican are the ones who won't help the Mother once she gives birth and is in financial problems. Children are only important to Republican when they are in the womb.
Todd Gray
Todd Gray Jul 09, 2021 3:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You don't understand the real definition of liberalism. Neither do you understand many Republicans have been deeply liberalized. Any college level ECON-101 text states in the first chapter liberalism "is" capital flowing upstream. What does that mean? It means "stop" making a "fair profit", and "overcharge" the people as "much" as you can for "all" the goods & services they buy. Then, charge them late fees, service fees, subscription fees, etc. And, make it near impossible to escape the trap. That's real liberalism. All the other issues they've been blabbing on about for decades are mostly lipstick hiding a very fat pig. It's misdirection!
Darryl Allen
Darryl Allen Jul 09, 2021 3:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tony, stop acting like welfare has anything to do with your support of abortion. We all know why abortion clinics are in the minority communities.
Tom Lemon
Tom Lemon Jul 09, 2021 3:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
explain all the rich white girls getting knocked up by thugs and some want to abort.
Kaveh Sun
Kaveh Sun Jul 09, 2021 9:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Old jaded people even with gov help cant compete. High school age kids come up w new companies all the time.
Joe Bitman
Joe Bitman Jul 09, 2021 9:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lol youre waynoff in that a very FEW of the new generation have been able to start new online companies but new generation has no idea how to start real world businesses and the tech companies have made it hardest for the young romcompete toure so wrong
Martin Lewis
Martin Lewis Jul 09, 2021 9:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You mean like David Hogg who tried to start a "woke" pillow company to compete with MyPillow and his plan fell apart rapidly?
Martin Lewis
Martin Lewis Jul 09, 2021 9:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You mean like David Hogg who tried to start a "woke" pillow company to compete with MyPillow and his plan fell apart rapidly? Youths are being raised by globalists to be socialist/communist slaves who blame capitalism for everything while drinking their $10 cup of starbucks and playing on their $1200 iphone.
Tom Lemon
Tom Lemon Jul 09, 2021 9:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Martin Lewis seems you have no clue what socialism or capitalism means
Connecticut Yankee
A_Jaundiced_Eye Jul 09, 2021 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How about the news media?  Does the left-wing media have a monopoly on political discussion in Washington, NYC and San Francisco?
Truth Trader
Truth Trader Jul 09, 2021 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Still counting votes, are we?
Joe Bitman
Joe Bitman Jul 09, 2021 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Truth Trader you still thinking election was legit, huh? Youd do well in Russia and north korea, parrot
Benjamin McIntire
Benjamin McIntire Jul 09, 2021 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Joe Bitman the Russia and Kim simp is Trump, wake up.
Tom Lemon
Tom Lemon Jul 09, 2021 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Joe Bitman prove the voting fraud or sit down
Tom Lemon
Tom Lemon Jul 09, 2021 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Joe Bitman where is the proof of fraud?
David Lockshin
David Lockshin Jul 09, 2021 8:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Unlocked cell phones should be first.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email