The Biden administration proposed a series of new guidelines Wednesday designed to reign in corporate consolidation and provide more transparency to consumers.
A joint draft from the Department of Justice and the Federal Trade Commission put forth 13 guidelines for corporate mergers, which the White House says “may lead to increased prices, reduced quality, or lower wages.”
The proposal was released following a meeting between President Joe Biden and the White House Competition Council, a body created by executive order in 2021.
The document makes clear that market competition is a major priority for what the administration is calling “Bidenomics.” The guidelines state that mergers should not “significantly increase concentration in highly concentrated markets” or “eliminate substantial competition between firms.”
Under this proposal, the FTC and DOJ would examine whether competition between the merging entities is substantial.
Accordingly, mergers should also not “increase the risk of coordination” or “eliminate a potential entrant into a concentrated market.”
“When President Biden took office, four decades of misguided economic philosophy had led to a pull back from robust government action to promote competition, and concentration had increased in more than 75% of US industries,” a White House Fact Sheet stated.
Meanwhile, Attorney General Merrick Garland said that the proposed guidelines “respond to modern market realities” that could challenge “the free and fair markets upon which our economy is based.”
Aside from the corporate competition guidelines, the administration also said it is creating a website designed to reveal hidden or so-called “junk” fees that renters could be charged when signing a lease.
The White House is working with companies such as Zillow (NASDAQ:Z), Apartments.com and AffordableHousing.com to create the website, according to a statement.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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