WASHINGTON (CN) — The Biden administration on Wednesday rolled out new guidelines on corporate mergers and unveiled its latest set of policy proposals in its crusade against so-called “junk fees" and runaway pricing.
The guidelines were the focus of President Joe Biden’s latest meeting with the White House Competition Council, established in 2021 to tackle transparency for consumers and support start-ups and small businesses.
At a meeting of the group on Wednesday, Biden sought to pitch a range of new consumer protections while also emphasizing his free-market bona fides.
“I have no problem with companies making reasonable profits,” Biden said — but there "has to be fair competition for that to occur." He warned that across multiple industries, "often a handful of companies dominate the marketplace.”
“Capitalism without competition isn’t capitalism," Biden said. "It's exploitation."
Addressing corporate mergers, the Justice Department and the Federal Trade Commission, which enforce antitrust laws, are proposing new evaluation guidelines aimed at providing more clarity on the impacts consolidation has on workers and the economy.
Since first publishing guidelines for mergers in 1968, the agencies have updated the policies six times. In this latest version, the agencies stress mergers should not significantly increase corporate concentration, eliminate substantial competition or create a monopoly.
Officials cited an Oxford University report saying 75% of industries in the U.S. have become more concentrated since 1990. The White House said studies have found the consolidation leads to higher prices and wage stagnation.
The updated guidelines are also aimed at a digital economy dominated by companies like Apple, Amazon, Alphabet and Meta. Alphabet and Meta are the parent companies of Google and Facebook, respectively.
Attorney General Merrick Garland said the updated guidelines “respond to modern market realities” and will protect Americans from “the damage that anticompetitive mergers cause."
“Unchecked consolidation threatens the free and fair markets upon which our economy is based,” he stated in a press release.
In a statement of her own, FTC Chair Lina Khan said the guidelines follow legal precedent.
“Open, competitive, resilient markets have been a bedrock of America’s economic success and dynamism throughout our nation’s history," Khan stated. "Faithful and vigorous enforcement of the antitrust laws is key to maintaining that success."
A separate part of Wednesday’s announcement focuses on fees charged by landlords, as well as price-gouging in the food industry.
They’re the latest sectors targeted by the White House in its efforts to rein in “junk fees,” or hidden charges not disclosed to consumers upfront. Previous announcements highlighted efforts to reduce costs in the travel industry and health care.
“Folks are tired of being played for suckers,” Biden said. “It’s about basic fairness.”
The White House is working with housing listing sites Zillow, Apartments.com and AffordableHousing.com to launch a new website showing renters all of the fees they could be charged when signing a lease. Officials have raised concerns about hidden charges for credit checks, online rent payments and trash collection.
On food prices, the Department of Agriculture announced a partnership with state attorneys general to target anti-competitive market structures that it says are increasing prices and limiting choices for consumers and producers.
Not everyone is happy with Biden's efforts to impose new protections across various sectors of the economy. Some business groups have raised concerns about the competition council, saying it could increase regulatory costs and lead to rising prices for consumers.
After the council’s last meeting in February, Neil Bradley, the U.S. Chamber of Commerce's chief policy officer, warned measures like these would "make our economy less competitive."
"This Washington-knows-best approach will raise prices for families [and] lead to fewer choices for consumers," Bradley said.
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