Joe Biden limited corporate concentration in the United States by executive order

United States, 2021: the president wants to limit the concentration of companies to lower prices, increase wages, encourage innovation and stimulate economic growth.

This is why the head of state Joe Biden signed a decree with 72 concrete initiatives aimed at a dozen US government agencies that aspire to “make tangible improvements in people’s lives.”

In all cases, with the execution of the decree started a difficult relationship between government and corporate titans likely to reshape important sectors of the US economy.

“The heart of American capitalism is a simple idea: open and fair competition”, Biden summed up by signing the executive order, surrounded by cabinet members.

“… Competition drives the economy forward and makes it grow. Fair competition is the reason why capitalism has been the greatest force in the world for prosperity and growth, ”he continued.

In a statement, the White House explained that a small number of companies control much more market than 20 years ago in 75% of the country’s economic sectors, and in particular in the health, financial services and agriculture sectors.

“Inadequate competition slows economic growth and innovation”pointed out the White House.

“The rate of new business creation has fallen by nearly 50% since the 1970s, because big companies make it difficult for Americans with good ideas to enter the markets“.

SKILL

Among the specific measures included in the executive decree Biden signed yesterday is prohibition or limitation of non-competition agreements that companies force their workers to sign. The government considers that many of these agreements are unnecessary and prevent workers from changing jobs and improving their pay conditions.

TELECOMMUNICATIONS

With regard to telecommunications companies, the US executive prohibit excessively high cancellation fees and forcing companies to Provide your customers with all costs in detail for easy comparison.

They also prohibit businesses from making exclusive agreements with landlords, as this limits the ability of tenants to contract home internet to one or two distributors.

The executive plans to regain network neutrality, which the Obama administration approved and the Trump administration repealed. Likewise, limit manufacturers of electronic equipment, in the case of phones, that prevent self-repair or repair by third-party technical services.

MERGERS AND ACQUISITIONS

When it comes to large tech companies, Biden urged the Federal Trade Commission (FTC) be more comprehensive when reviewing mergers and acquisitions transactions, especially where a company may buy from a potential competitor at an early stage.

In addition, Biden assured that the FTC will be able to review mergers approved in the past.