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US President Donald Trump on Wednesday formally revoked a 2021 directive issued by his predecessor Joe Biden to promote competition in the US economy, the White House confirmed.
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The official order states: “By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered: Section 1. Revocation. Executive Order 14036 of July 9, 2021 (Promoting Competition in the American Economy), is hereby revoked.”
The statement also clarifies that the revocation does not impair existing legal authorities of federal agencies, and will be implemented in accordance with applicable laws and “available appropriations”, and does not create any “enforceable rights.”
Biden’s original order
Biden’s 2021 order was designed to stop unfair corporate practices. His administration said these included things like excessive airline fees and large mergers that raise prices for consumers. The policy was a major effort supported by advisers connected to Senator Elizabeth Warren, who helped set up the Consumer Financial Protection Bureau (CFPB) during Barack Obama’s presidency.
The CFPB is a government agency meant to protect people from unfair treatment by banks, credit card companies, and other lenders.
Trump has long opposed the CFPB and announced plans to reduce its staff by 90%. Consumer advocates say cutting back the agency’s work has already cost Americans about $18 billion in extra fees and lost compensation from corporate wrongdoing, according to a June study by the Student Borrower Protection Center and the Consumer Federation of America.
DOJ supports Trump’s move
As reported by Reuters, the DOJ welcomed Trump’s decision, saying it fits with its “America First Antitrust” approach. Antitrust laws are designed to prevent companies from getting too much market power and blocking fair competition.
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The DOJ said this new direction would focus on encouraging free markets and avoid what it called Biden’s “overly prescriptive and burdensome approach.”
It also plans to simplify the review process for mergers under the Hart-Scott-Rodino Act and bring back more targeted consent decrees – legal agreements used to stop or prevent certain business practices without a trial.
Meanwhile, Hannah Garden-Monheit, who directed competition policy under Biden, accused Trump of abandoning protections for small businesses and workers.
“This shows President Trump’s claim he would ‘Make America Competitive Again’ was a sham. Instead of enforcing the competition laws, he’s throwing Main Street businesses and workers under the bus while doing favors for the rich and powerful,” she said, as per Reuters.
(With inputs from Reuters)
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