Biden’s New Executive Orders Will Promote the Competitive Economy Americans Want
By Sean McElwee
Today, President Biden announced a new executive order to promote competition across the U.S. economy. Arriving on the heels of several key antitrust appointments in the White House and Federal Trade Commission (FTC), the executive order provides more good news for reformers who have been pushing Biden to crack down on corporate monopolies.
The executive order unleashes the full force of the federal government to tackle corporate power and boost competition. It calls for the Justice Department and FTC to issue updated guidance for reviewing proposed mergers, including so-called “vertical” mergers that have received less serious scrutiny from regulators, while also suggesting specific guidance for the Department of Transportation, Federal Communications Commission, and Department of Agriculture. While much of the public dialogue has centered on the nation’s technology giants, Biden’s executive order shows his administration understands that a handful of corporations are crushing competition in many other industries – from Big Ag to Wall Street.
As Congress weighs additional legislative action, the executive order paves the way for agencies to begin addressing corporate consolidation immediately, which may be especially beneficial as the economy reopens and recovers from the COVID-19 pandemic.
But more than just smart policy, fighting monopoly power and leveling the playing field is popular with voters from across the political spectrum. Data for Progress’ poll with Demand Progress found that large bipartisan majorities – including 63% of Democrats and 69% of Republicans – believe that the economic power of Big Tech companies is a problem facing the U.S. economy. In a separate poll, Data for Progress found that 56% of likely voters agree that Wall Street executives have too much influence over government policy, and 54% of likely voters believe the same is true for executives of large technology companies.
Voters also support steps the federal government has already taken to enforce antitrust laws and believe more aggressive action is warranted. Sixty-two percent of respondents across party lines indicated their support for the FTC’s recent action against Facebook alleging the company engaged in anti-competitive practices by acquiring competitors such as WhatsApp and Instagram. Forty-eight percent of voters, including a majority of Republicans, support the Justice Department’s antitrust lawsuit against Google, which alleges the company used its monopoly power to limit competition in online search and advertising services. Nearly half of voters believe the Biden administration should continue this lawsuit, which was initiated during the Trump administration, or “go even further” to crack down on large technology companies, compared to just 28% of voters who believe the Biden administration should drop the suit. Moreover, 58% of voters – including large majorities of Democrats, Republicans, and Independents – support breaking up large tech firms into smaller entities to promote competition.
To be sure, critics will argue that Biden’s efforts to tackle corporate monopolies will face their biggest challenge in the courts, and in June, the administration suffered an unfortunate setback in its antitrust case against Facebook. However, rather than use this logic to justify backing down from these fights, the Biden administration [today] is choosing to double down.
In the first six months of his administration, Biden has shown time and again that his agenda is guided by what is popular with the American people, not just politicians in Washington. With strong bipartisan majorities supporting steps to take down the nation’s biggest monopolies, Biden’s executive order is one more example of that strategy in action – and voters are cheering him on.
Sean McElwee (@SeanMcElwee) is the Executive Director of Data for Progress.