President Joe Biden has issued an executive order aimed at squeezing giant tech companies but also encouraging competition.
Mr. Biden’s decision reflects his desire for stronger oversight of Big Tech, which the administration has accused of “undermining competition and for which he has placed a new order on big tech.
“Capitalism isn’t capitalism if there isn’t any competition. It’s a form of exploitation “Mr. Biden stated during a signing session on Friday.
The directive calls for eleven agencies to take 72 measures and make recommendations.
It implies that issues have occurred as a result of huge digital companies acquiring excessive amounts of personal data, buying up potential competitors, and competing unfairly with small enterprises.
It makes several recommendations, including:
Mergers in the tech sector are being scrutinized more closely.
The Federal Trade Commission (FTC) will issue new data-gathering rules.
Online markets are prohibited from using unfair competitive practices.
The decree will also affect a number of other industries, according to the Biden administration.
Other government agencies are encouraged to take steps to improve competition in healthcare, tourism, and agriculture.
Why he came for a new order on big tech
When completely implemented, it would allow for the sale of hearing aids over the counter, as well as the elimination of early termination fees from internet contracts. It also aims to make it easier for passengers to get airline reimbursements.
According to the White House fact sheet, “business consolidation has been accelerating for decades,” and the order is “a whole-of-government effort to foster competition in the American economy.”
The order, according to Mr. Biden, aims to minimize the use of “non-compete agreements” as a condition of employment, which he claims makes it more difficult for individuals to change jobs and thereby limits earnings.
The executive order, on its own, does not guarantee that these proposals will be implemented right away.
The adjustments must be implemented by the government entities involved, and some portions may be challenged in court.
What is the meaning of Big Tech?
Big Tech, also known as the GAFAM, FAAMG, Tech Giants, or the Big Five, refers to the five most powerful and dominant companies in the United States’ information technology industry: Google, Apple, Facebook, Amazon, and Microsoft.
These companies were among the most valuable publicly traded companies in the world, with market capitalizations ranging from $1 trillion to $2 trillion USD.
Antitrust investigations have been launched by the Department of Justice and the Federal Trade Commission in the United States, as well as the European Commission, due to concerns about monopolistic practices.
The influence of these firms on privacy, market power, free speech and censorship, as well as national security and law enforcement, has been questioned by commentators. It has been suggested that living in the digital world on a daily basis outside of the corporations’ ecosystem may be impossible.
It has been found that corporations maintain their popularity by delivering free services to customers.
The Chinese corporations Baidu, Alibaba, Tencent, and Xiaomi, collectively known as BATX, are sometimes viewed as Big Tech competitors.
Yesterday, Biden signed new order on the big tech that should hit the Big Tech brakes