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Executive Order 14036

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Executive Order 14036
"Promoting Competition in the American Economy"
Seal of the President of the United States
TypeExecutive order
Executive Order number14036
Signed byJoe Biden on July 9, 2021 (2021-07-09)
Federal Register details
Federal Register document number2021-15069
Publication date9 July 2021
Summary
Authorizes an all-of-government approach to promoting competition and creates a White House Competition Council.

Executive Order 14036, titled Executive Order on Promoting Competition in the American Economy and sometimes referred to as the Executive Order on Competition,[1] is the fifty-first executive order signed by U.S. President Joe Biden. Signed on July 9, 2021, the order serves to establish a "whole-of-government effort to promote competition in the American economy" by encouraging stronger enforcement of antitrust law.[2]

The executive order directs over a dozen federal agencies, including the Federal Trade Commission (FTC), to take action on 72 separate initiatives identified by the Biden administration as beneficial to reining in anti-competitive practices. Specific initiatives in the executive order include efforts to limit non-compete clauses, allow for hearing aids to be sold over the counter, and revive net neutrality.[3][4] The order has been interpreted as supportive of the "right to repair" movement, which seeks to prohibit companies from making products prohibitively difficult to repair in order to encourage consumers to purchase new products.[5][6]

The order additionally establishes the White House Competition Council, a fifteen-member committee led by National Economic Council (NEC) director Lael Brainard.[7]

Background

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Antitrust enforcement in the United States began to decline in the 1970s, which coincided with the rise of the laissez-faire "consumer welfare standard" as the dominant approach to antitrust issues.

In the 2010s, concerns surrounding corporate concentration and wealth inequality led to a revived interest in antitrust enforcement.[8] During the 2020 Democratic presidential primary, multiple contenders including then-candidate Biden indicated support for strengthening antitrust enforcement in the tech sector.[9]

NEC advisor Tim Wu, a vocal antitrust proponent, has been credited with helping to author the executive order

As President, Biden appointed vocal proponents of antitrust enforcement to advisory and regulatory roles, including Tim Wu as an advisor at the NEC and Lina Khan as chairwoman of the FTC. Wu helped author Executive Order 14036 and assisted with its implementation during his time as an advisor.[10]

Provisions

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Containing 72 provisions, the executive order was said to be "striking in its scope and ambition" by The Washington Post.[11]

Antitrust enforcement

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The order calls on the FTC and the Department of Justice (DOJ) to "enforce the antitrust laws vigorously and recognizes that the law allows them to challenge prior bad mergers that past administrations did not previously challenge" in areas such as the tech sector, labor markets, and the healthcare industry.[2]

The executive order cites research by the American Economic Liberties Project (AELP), an anti-monopoly organization, that found that the median U.S. household loses $5,000 a year from wages that are lowered as a result of a lack of competition.[12]

Agriculture

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Under the executive order, the Department of Agriculture (USDA) is directed to consider new department rules that would strengthen enforcement of the Packers and Stockyards Act in order to make it easier for farmers to bring and win claims. The FTC is additionally directed to consider new initiatives to prevent equipment manufacturing companies from restricting farmers from repairing their tractors.[2]

Net neutrality and broadband

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The executive order encourages the Federal Communications Commission (FCC) to reinstate federal net neutrality regulations.[13] According to Vice, the order prohibits telecom companies from levying early elimination penalties on consumers, and urges the FCC to implement rules "that would have required ISPs include a “nutrition label” on broadband connections".[14]

Reception and analysis

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According to Politico, the order marks "the most ambitious effort in generations to reduce the stranglehold of monopolies and concentrated markets in major industries", and could be interpreted as a leftward shift by the Biden administration on economic policy.[15]

Senator Elizabeth Warren of Massachusetts praised the order as a critical step towards reinvigorating competition.[16] Neil Bradley, who serves as chief policy officer for the Chamber of Commerce, criticized the order and accused the White House of taking a “government-knows-best approach” at the expense of American businesses.[11]

White House Competition Council

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Chair of the White House Competition Council
Incumbent
Lael Brainard
since February 21, 2023
AppointerJoe Biden
as President of the United States
First holderBrian Deese

The executive order created the White House Competition Council to coordinate inter-agency efforts to promote competition. The chair of the White House Competition Council is Lael Brainard, the director of the National Economic Council (NEC). She succeeded Brian Deese, the inaugural holder of the role, in February 2023.[17]

Composition of the council

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The council is currently composed of the following individuals:[18]

Cabinet or cabinet-level officials

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Advisors and heads of federal agencies

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Other personnel

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Additionally, Hannah Garden-Monheit, a member of the NEC, was named by Biden to serve on the council as Director of Competition Council Policy on July 18, 2023.[20] In November 2023, it was reported that Garden-Monheit would leave the council to join the FTC.[21]

Council meetings

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Meeting of the White House Competition Council on February 1, 2023

The first meeting of the White House Competition Council convened on September 10, 2021 in the Roosevelt Room of the White House, with the meeting led by inaugural director Brian Deese. A White House official stated that the meeting would serve to "drive home that promoting competition is a cornerstone of POTUS’ Build Back Better agenda".[22] Biden attended the council's second meeting on January 24, 2023, where he stated that increased competition "results in lower prices for families" and "fair wages for workers".[23]

The White House reconvened the council for a third meeting on September 26, 2022, with FCC chair Rosenworcel attending virtually.[24] A fourth meeting of the council was held on February 1, 2023, which coincided with the Biden administration announcing new policy initiatives related to credit card fees and app market charges.[25] At the council's fifth meeting, held on July 19, 2023, Biden criticized "hidden junk fees" for prospective tenants.[26]

See also

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References

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  1. ^ "Justice Department Celebrates the One-Year Anniversary of the Executive Order on Competition". United States Department of Justice. 2022-07-11. Retrieved 2022-11-15.
  2. ^ a b c "FACT SHEET: Executive Order on Promoting Competition in the American Economy". The White House. 2021-07-09. Retrieved 2022-11-14.
  3. ^ Montague, Zach (2021-07-09). "Biden's order includes 72 initiatives that take aim at very specific practices the White House wants changed". The New York Times. ISSN 0362-4331. Retrieved 2022-11-14.
  4. ^ McCabe, David; Tankersley, Jim (2021-07-09). "Biden Urges More Scrutiny of Big Businesses, Such as Tech Giants". The New York Times. ISSN 0362-4331. Retrieved 2022-11-14.
  5. ^ Klosowski, Thorin (2021-07-15). "What You Should Know About Right to Repair". The New York Times. Retrieved 2022-11-14.
  6. ^ Duffy, Clare (2021-07-14). "Biden's executive order takes on right-to-repair. It could make fixing your smartphone easier | CNN Business". CNN. Retrieved 2022-11-14.
  7. ^ "Readout of the Inaugural Meeting of the White House Competition Council". The White House. 2021-09-10. Retrieved 2022-11-14.
  8. ^ Yglesias, Matthew (2017-09-07). "5 different things people mean when they say we need to revive antitrust". Vox. Retrieved 2022-11-14.
  9. ^ Scola, Nancy (June 14, 2019). "How a liberal think tank is driving 2020 Dems to crack down on Big Tech". POLITICO. Retrieved 2022-11-14.
  10. ^ Cassidy, John (2021-07-12). "The Biden Antitrust Revolution". The New Yorker. Retrieved 2022-11-14.
  11. ^ a b Stein, Jeff; Gregg, Aaron; Zakrzewski, Cat (July 9, 2021). "Biden's bid to take on big business sets off battle over who holds power in U.S. economy". Washington Post.
  12. ^ Bose, Nandita; Renshaw, Jarrett; Bartz, Diane (2021-07-10). "Biden signs order to tackle corporate abuses across U.S. economy". Reuters. Retrieved 2022-11-16.
  13. ^ McGill, Margaret Harding (2021-07-09). "Biden takes aim at Big Tech, broadband with sweeping competition order". Axios. Retrieved 2022-11-14.
  14. ^ Bode, Karl (July 9, 2021). "White House Executive Order Poised to Restore Net Neutrality". Vice. Retrieved 2022-11-14.
  15. ^ Nylen, Leah (July 8, 2021). "Biden launches assault on monopolies". POLITICO. Retrieved 2022-11-14.
  16. ^ "Warren Statement On President Biden's Effort to Promote Competition, Bolster Antitrust Enforcement | U.S. Senator Elizabeth Warren of Massachusetts". Newsroom - Senator Elizabeth Warren (warren.senate.gov). July 9, 2021. Retrieved November 15, 2022.
  17. ^ "Remarks as Prepared by NEC Director and White House Competition Council Chair Lael Brainard at the American Economic Liberties Project's Anti-Monopoly Summit". The White House. 2023-05-04. Retrieved 2023-06-06.
  18. ^ "White House Competition Council". The White House. Retrieved 2023-06-06.
  19. ^ Birnbaum, Emily (2023-09-29). "Biden Trade Chief to Join White House Competition Council". Bloomberg. Retrieved 2023-10-04.
  20. ^ Shalal, Andrea (2023-07-18). "Biden creates new competition role on National Economic Council". Reuters. Retrieved 2023-11-01.
  21. ^ Sisco, Josh (2023-11-03). "White House competition aide to take FTC policy role". POLITICO. Retrieved 2023-11-28.
  22. ^ Sullivan, Kate (2021-09-10). "Newly formed White House council to promote competition across US economy to hold first meeting | CNN Politics". CNN. Retrieved 2023-11-28.
  23. ^ Klein, Betsy (2022-01-24). "Biden highlights efforts to fight inflation: 'Competition results in lower prices' | CNN Politics". CNN. Retrieved 2023-11-28.
  24. ^ Shepardson, David (2022-09-22). "U.S. competition to top Biden agenda at Monday meeting". Reuters. Retrieved 2023-11-28.
  25. ^ Gillison, Douglas; Shepardson, David (2023-02-01). "Biden moves to slash U.S. credit card fees, app charges". Reuters. Retrieved 2023-11-28.
  26. ^ Lesniewski, Niels (2023-07-19). "Biden versus fees: 'Folks are tired of being played for suckers'". Roll Call. Retrieved 2023-11-28.
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