The presidential decree has the operators of the leading Internet platforms – Big Tech – in sight. (Image: Ascannio / Shutterstock.com)
The technology sector is increasingly dominated by only a few large players. Among others, Amazon, Google, Apple and Facebook are now the focus of a presidential directive. The Executive Order essentially states that the federal government makes the fight against market dominance a priority. The document covers a wide range of economic topics. It starts with international trade, goes through the rights of farm workers to internet providers, the pharmaceutical industry and big tech.
The Increasing concentration in certain markets makes many products more expensive, curbs innovation and puts pressure on wages to the detriment of the working population. In more than 75 percent of the industries, a small number of corporations determine the business. While they generated three times as much revenue, US wages fell 17 percent over the same period, notes the regulation leaflet. In addition to the general appeal to the authorities to vigorously enforce the existing competition rules, Biden has formulated 72 specific individual orders for them. This includes regulations in the medical, aviation and agricultural sectors.
First the responsible agency FCC (Federal Communications Commission) is supposed to restore net neutrality – the Trump administration had withdrawn the corresponding set of rules. Biden continued to urge the agency to promote price transparency and competition in the broadband sector. Contracts and secret agreements between landlords and providers increasingly restricted freedom of choice. The paper also states that in many regions individual providers dictate prices. They are up to five times as high there as in areas with competitors. This also hampers broadband expansion. The government continues to urge the FCC to take action against misleading advertising prices, hidden fees and switching costs.
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regulate monopolies to protect consumers
In addition to many side scenes, a core aspect of the disposition is the intensive regulation of tech companies . The focus is on acquisitions that are only aimed at eliminating young competitors. The directive mentions that platform operators copy the offers of smaller providers in order to outmaneuver them. To back up his cause, Biden appointed big tech critic Lina Khan to chair the Federal Trade Commission (FTC). The authority has tasks in the area of antitrust. and competition law as well as consumer protection. It should exercise stronger merger control, “in particular of dominant Internet platforms with special attention to the takeover of emerging competitors, serial mergers, the accumulation of data, competition through” free “products and the effects on the privacy of users.” Also on The agenda includes contractual non-compete obligations – for example in employment contracts. The order also encourages the independent agency to formulate new rules governing the collection and use of personal information. A few hours after the executive order was published, the FTC released a statement from the new chairmen. In it, Khan announced that he would review and possibly revise merger guidelines. This is in line with politics, the larger review of mergers, “especially of dominant Internet platforms”. The FTC is already working on new data protection laws.
Establish the right to repair
As has already been announced, another order concerns the right to repair. Cell phone manufacturers and other tech companies as well as tractor manufacturers would have restricted self-repairs and third-party repairs through an exclusive sale of parts, diagnostic devices and tools. The FTC should put in place rules to curb these practices so that consumers can repair their equipment on their own terms.
