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Biden signs order to crack down on Big Tech, increase competition ‘across the board’

The White House on Friday announced a new executive order aimed at combating anti-competitive practices in Big Tech, the workforce and several other sectors, CNBC’s Ylan Mui reported.

The sweeping order, which includes 72 actions and recommendations involving a dozen federal agencies, is intended to reshape corporate consolidation thinking and antitrust laws, Mui reported on CNBC’s “Squawk Box.”

“The impetus for this announcement is really around where we can encourage greater competition across the board,”

; White House financial adviser Brian Deese told Mui in an exclusive interview.

Through his technology-related actions, President Joe Biden’s order aims to make the case that the largest companies in the sector are using their power to exclude smaller competitors and exploit consumers’ personal information, Mui said.

The order will call on regulators to adopt reforms such as To increase their control over technological mergers and put more focus on movements like “killer acquisitions”, where companies acquire smaller brands to take them out of the market, according to Mui.

The tech giants’ tighter grip has led to a drop in innovation, Deese told Mui.

These platforms have “created significant problems,” Deese said. It includes “problems for users in terms of privacy and security” and “problems for small businesses in terms of entering markets,” he said.

The executive order was unveiled just weeks after the House Judiciary Committee voted to promote six cartels with a view to reviving competition in the technology sector.

The bills, which would make it more difficult for dominant companies to carry out mergers and ban certain common business models for such companies, have had a significant dichotomy from those concerned that they do not go far enough or will have unintended side effects.

In late June, a judge issued complaints from the Federal Trade Commission, and a group of state attorneys claiming that Facebook had illegally maintained its monopoly power.

Biden’s announcement also calls on the FTC to draft new rules for Big Tech’s data collection and user monitoring practices and asks the agency to ban certain unfair competition practices in Internet markets, Mui reported.

The order could provide some relief to small and medium-sized businesses that have complained about the allegedly crippling grip of technology companies like Amazon, Apple, Facebook and Google over digital markets.

The city’s executive order does not unilaterally impose its will on Big Tech companies and instead calls on the independent FTC to intervene.

But new FTC president Lina Khan, a Biden nominee who at age 32 became the youngest person to ever have the role when she was sworn in last month, has already carved a reputation as a vocal advocate for reform and strengthen the rules of tech giants.

Amazon is calling for Khan to be removed from ongoing probes for her business, arguing that she lacks impartiality and accusing her of repeatedly saying the company is “guilty of antitrust violations and should be split.”

This story unfolds. Come back for updates.

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