Executive Order 14036: A New Era for Antitrust Laws

Executive Order 14036 marked a significant shift in the way antitrust laws are enforced in the US. It aimed to promote competition and prevent monopolies from forming.

The order specifically targets mergers that could reduce competition, such as those in the tech industry. It requires the Federal Trade Commission to review these mergers more closely.

This change in policy is a response to growing concerns about the concentration of corporate power. Critics argue that large companies have too much influence over the economy and stifle innovation.

The order also encourages the use of data to identify potential antitrust issues. This could lead to more targeted enforcement and fewer frivolous lawsuits.

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The executive order calls on the FTC and the DOJ to enforce antitrust laws vigorously. This includes challenging prior bad mergers that past administrations didn't previously challenge.

The order specifically targets areas such as the tech sector, labor markets, and the healthcare industry. It's a significant move that could have far-reaching consequences.

According to research by the American Economic Liberties Project, the median U.S. household loses $5,000 a year due to wages lowered by a lack of competition. That's a staggering figure that highlights the need for stronger antitrust enforcement.

The reception of Executive Order 14036 has been mixed, with some praising its ambitious efforts to reduce monopolies and concentrated markets. Politico calls it the most ambitious effort in generations to address this issue.

Senator Elizabeth Warren of Massachusetts has praised the order, calling it a critical step towards reinvigorating competition. She sees it as a positive development in the fight against monopolies.

On the other hand, Neil Bradley, chief policy officer for the Chamber of Commerce, has criticized the order, accusing the White House of taking a "government-knows-best approach" at the expense of American businesses.

As part of Executive Order 14036, several key leaders were appointed to head federal agencies. Cecilia Rouse was appointed as the Chairwoman of the Council of Economic Advisers (CEA).

These leaders play a crucial role in shaping the country's policies and regulations. Shalanda Young was appointed as the Director of the Office of Management and Budget (OMB).

Here's a list of some of the notable federal agency leaders appointed under Executive Order 14036:

These leaders are responsible for implementing and enforcing various regulations and laws, including those related to antitrust law.

Executive Order 14036, issued on July 9, 2021, by President Biden, aims to promote competition in the American economy.

The order includes 72 initiatives by more than a dozen federal agencies to address competition issues across the economy. The administration views corporate consolidation as a trend that requires a whole-of-government approach to drive down prices for consumers, increase wages for workers, and facilitate innovation.

The EO sets in motion reviews and rulemakings to enforce existing antitrust laws and other laws that impact competition. This is to combat excessive concentration of industry and abuses of market power.

A new White House Competition Council is established to coordinate the White House response to anticompetitive behavior. The Council will consist of representatives from key agencies and invite the participation of the FTC and several other independent agencies.

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The EO does not establish immediate requirements or prohibitions for nongovernmental entities, but it calls for swift action by federal agencies to establish policies and propose changes.

The Chair of the FTC and the Acting Assistant Attorney General for Antitrust at the DOJ announced that they will initiate a review of the agencies' joint merger guidelines. This will update them to reflect a rigorous analytical approach.

Here is a breakdown of the EO's sections:

The EO calls on the DOJ and FTC to enforce existing antitrust laws "vigorously" and focuses on labor markets, agricultural markets, health care markets, and the tech sector.

Big Tech is in for a closer look. The EO outlines a policy of greater scrutiny of mergers, especially by dominant Internet platforms, with particular attention to the acquisition of nascent competitors.

The EO encourages the FTC to issue rules on surveillance and the accumulation of data, as well as rules prohibiting unfair methods of competition on Internet marketplaces. This will likely impact companies that rely on collecting user data to drive their business models.

The EO also directs the Treasury Department to examine the impact of large technology firms' entry into consumer finance markets, with a report due within 270 days. This will provide valuable insights into the effects of these companies' expansion into new markets.

Here are some key areas where the EO will have a significant impact:

Labor Markets are about to get a shake-up. The Executive Order has called on the FTC to ban or limit non-compete agreements, which can restrict worker mobility.

The order also notes that certain occupational licensing requirements can restrict competition, and asks the FTC to ban "unnecessary" occupational licensing restrictions that do the same.

Employers sharing wage and benefit information in a way that suppresses wages or benefits is also on the radar. The order encourages the FTC and DOJ to bolster existing guidance to prevent this from happening.

The Treasury Department is tasked with submitting a report on the impact of the current lack of competition on labor markets within 180 days.

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Here are some key areas the Treasury Department will be assessing in their report:

The Treasury Department will also be initiating a rulemaking to update trade practice regulations and revise policies that may inhibit competition within 240 days.

Big Tech is in for a closer look, as the Executive Order (EO) aims to increase scrutiny of mergers, particularly those involving dominant Internet platforms. The EO wants to prevent the acquisition of nascent competitors and serial mergers.

The EO also targets the accumulation of data and competition through "free" products, which can affect user privacy. This is a major concern for individuals and businesses alike.

The Federal Trade Commission (FTC) will play a key role in implementing these changes. They'll be issuing rules on surveillance and data accumulation, as well as prohibiting unfair methods of competition on Internet marketplaces.

Independent repair shops and individuals repairing their own devices will also benefit from the EO's directives. The FTC will establish rules to prevent anticompetitive limits on these practices.

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The Treasury Department has a 270-day deadline to submit a report on the impact of competition in consumer finance markets. This will provide valuable insights into the effects of large technology firms and other nonbank companies entering this space.

Here are some key areas to watch for in the EO's implementation:

The banking and consumer finance industries are in for some significant changes. The EO calls for increased scrutiny of banking mergers, a move aimed at addressing excessive consolidation.

The Consumer Financial Protection Bureau (CFPB) is tasked with developing rules that will allow customers to port their banking data, giving them more control over their financial information.

The Attorney General has 180 days to review current practices and come up with a plan to revitalize merger oversight under the Bank Merger Act and the Bank Holding Company Act of 1956.

This move could have a significant impact on the way banks operate, and ultimately, on consumers.

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Shipping companies need to ensure their competition compliance programmes are up to date. This is a key takeaway from Executive Order 14036.

Having a compliance programme in place can significantly reduce the chances of being held criminally liable for the wrongdoing of an employee. In the UK, for example, it can reduce the chances of criminal liability.

The US and UK offer a discount for shipping companies with a compliance programme in place. However, the EU does not offer such a discount.

There are now 200 jurisdictions with competition laws in place worldwide, up from 30 in 1990. This shows how much the world has become interested in competition compliance.

Carriers would do well to ensure they have compliance in place, especially given the difficulties they're facing such as lack of containers and lack of facilities to discharge cargo.