Biden issues order to boost competition

President Joe Biden has issued an executive order that aims to reduce the trend of corporate consolidation while increasing competition and delivering benefits to America’s consumers, workers, farmers and small businesses, according to the White House.

The order directs over a dozen federal agencies, including the Federal Trade Commission (FTC), to look into unfair competitive practices in the areas of: 

• Restrictive covenant and non-compete agreements

• Prescription drug prices

• Internet billing and termination practices

• Airline refunds and cost comparison practices

Other initiatives in the order include:

• Encouraging the FTC to ban or limit non-compete agreements.

• Encouraging the FTC to ban unnecessary occupational licensing restrictions that impede economic mobility.

• Encouraging agencies to prevent employers from collaborating to suppress wages or reduce benefits by sharing wage and benefit information with one another.

• Establishing a White House Competition Council, led by the Director of the National Economic Council.

The order does not invalidate any of the above practices. However, industry experts recommend that employers take time to at least review their restrictive covenant agreements and evaluate how this order may impact their practices.