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Biden encourages further scrutiny of technology mergers and data privacy – News


Washington-Friday President Biden cracks down on how major high-tech companies can grow through mergers and leverages a chain of consumer data as part of a larger executive order aimed at distributing business integration across the economy Encourage federal agencies to gain a competitive advantage by doing so.

The executive order includes several measures specifically targeted at major tech companies such as Google, Facebook, Apple and Amazon, people familiar with the matter said.

The order informs federal agencies approving the merger that technology industry practices need to be scrutinized more closely. The second provision encourages the Federal Trade Commission to create rules that limit the use of consumer data. This is in response to criticism that companies like Amazon can leverage what they know about their users to gain an edge in competing services and businesses.

The order is Mr. Biden’s latest approval for concerns that tech giants have gained huge market power and are the gatekeepers of commerce, telecommunications and culture. An increasing group of lawmakers, scholars and rivals say government regulators have been unable to check corporate growth for more than a decade. To address corporate market power, policymakers need to proactively enforce antitrust laws and rewrite them to better capture Silicon Valley’s business model, they say.

Biden has already put Big Tech’s voice critics in a leadership position. At the White House, he appointed Tim Wu, a law professor at Columbia University and a frank supporter of the dissolution of a company like Facebook, as special adviser to the competition. He appointed Lina Khan as chairman of the Federal Trade Commission. Kahn also called for the dissolution of a major tech company and worked on an antitrust investigation into Amazon, Apple, Facebook and Google.

Big Tech critics also often argue that the economy as a whole is focused on penalizing consumers, including industries such as agriculture, medical and fashion. Also, some White House officials hope the order emphasizes the rise of large corporations and reminds President Franklin D. Roosevelt, who has set up government officials to oppose concentration. Stated.

However, his administration has a limited scope. The Federal Trade Commission and the Federal Communications Commission are independent bodies that enforce existing antitrust and telecommunications laws. These laws haven’t changed much since before the mass adoption of the Internet.

Congressmen have made several proposals to strengthen the hands of government agencies, but those bills are expected to face fierce resistance. Whitehouse officials said the new directive, which is expected to be fully announced on Friday, does not necessarily require parliamentary action to expand the capacity of the institution, those familiar with their content. Said. In many cases, regulators are refraining from enforcing existing legislation and creating new rules, they said.

One of the goals of the executive order is a merger in which large companies buy small and medium-sized companies that could be fierce competitors and drown out their rivals before they get on track. The directive reviews the guidelines used to evaluate proposed transactions, such as when a company buys a young competitor or when it buys a major cache of data that may help it gain an edge. We encourage our agencies to do so.

The order also requires the FCC to adopt new restrictions on the practices of broadband Internet providers such as Comcast, AT & T and Verizon. Activists have long said that consumers have too few options and spend too much money on Internet services.

Biden also bans Internet providers from blocking certain content, slowing delivery, and paying more for clients to deliver content faster, so-called net neutrality. We encourage you to re-enact the rules. The agency adopted the rules during the Obama administration and then rolled them back under President Donald J. Trump.

Mr Biden’s order encourages more aggressive enforcement of antitrust laws, but it emphasizes another fact: he still has permanent leaders in several government positions to crack down on competition. Not appointed.

He has not yet appointed a person to lead the Antimonopoly Department of the Department of Justice. Democratic Commissioner Jessica Rosenwessel has played that role in a tentative position, but he has not yet appointed a permanent chairman of the FCC.

Biden encourages further scrutiny of technology mergers and data privacy

Source link Biden encourages further scrutiny of technology mergers and data privacy

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