United States President Joe Biden’s executive order unveiled today indicated that Big Technology firms will be forced to reduce use of personal data to enhance their business growth.
White House in a statement said the executive order tackles three areas in which dominant tech firms are undermining competition and reducing innovation:
Big Tech platforms purchasing would-be competitors: Over the past ten years, the largest tech platforms have acquired hundreds of companies—including alleged “killer acquisitions” meant to shut down a potential competitive threat. Too often, federal agencies have not blocked, conditioned, or, in some cases, meaningfully examined these acquisitions.
There will be an Administration policy of greater scrutiny of mergers, especially by dominant internet platforms, with particular attention to the acquisition of nascent competitors, serial mergers, the accumulation of data, competition by “free” products, and the effect on user privacy.
Big Tech platforms gathering too much personal information: Many of the large platforms’ business models have depended on the accumulation of extraordinarily amounts of sensitive personal information and related data.
FTC will establish rules on surveillance and the accumulation of data.
Big Tech platforms unfairly competing with small businesses: The large platforms’ power gives them unfair opportunities to get a leg up on the small businesses that rely on them to reach customers. For example, companies that run dominant online retail marketplaces can see how small businesses’ products sell and then use the data to launch their own competing products. Because they run the platform, they can also display their own copycat products more prominently than the small businesses’ products.
FTC may establish rules barring unfair methods of competition on internet marketplaces.
Cell phone manufacturers and others blocking out independent repair shops: Tech and other companies impose restrictions on self and third-party repairs, making repairs more costly and time-consuming, such as by restricting the distribution of parts, diagnostics, and repair tools.
FTC may issue rules against anticompetitive restrictions on using independent repair shops or doing DIY repairs of your own devices and equipment.
