Biden signs Executive Order to protect consumers against tech giants, ISPs

*The US Government activates a fresh order to encourage the Federal Communications Commission to reintroduce a ‘broadband nutrition label’ to provide consumers with greater transparency cum lower prices, and increase competition

Gbenga Kayode | ConsumerConnect

In a strategic move to enhance transparency in providing basic information about the Internet service offered so consumers can compare options, United States (US) President Joe Biden has endorsed an Executive Order that will impose new rules on big tech companies and Internet Service Providers (ISPs) in the country.

ConsumerConnect gathered that the imminent changes outlined in the fresh order should ultimately help to promote competition and lower prices for telecoms consumers.

Some of the global ‘Big Tech’

President Biden, under the order, will encourage the Federal Communications Commission (FCC) to reintroduce a “broadband nutrition label” to provide consumers with greater price transparency in the telecoms ecosystem.

The White House in a statement of ‘fact sheet’ on the new order said the label would provide “basic information about the Internet service offered so people can compare options. “The Trump Administration FCC abandoned those plans.”

In view of the development, the country’s communications regulator (FCC) will be urged to restrict early termination fees and to prohibit exclusivity arrangements, which force apartment buildings and rental units to use only an ISP, agency report stated.

Besides, the order will direct the FCC to restore the net neutrality rules that were undone in 2017, requiring broadband companies to treat all internet services equally.

As a way to control the global technology giants called the ‘Big Tech’, the mergers of major Internet platforms such as Amazon and Facebook will also be scrutinised more carefully, according to report.

In view of this new development, the Biden administration has stated that it will be paying “particular attention to the acquisition of nascent competitors, serial mergers, the accumulation of data, competition by ‘free’ products, and the effect on user privacy.”

It was learnt this is the type of deal that several stakeholders believe Facebook exemplified when it bought Instagram and WhatsApp.

The fresh order specifically, zeroes in on companies’ collection and use of consumer data and how it affects competition, report said.

The White House further stated: “For decades, corporate consolidation has been accelerating.

“In over 75% of US industries, a smaller number of large companies now control more of the business than they did 20 years ago.

“This is true across healthcare, financial services, agriculture and more.”

The statement also noted “that lack of competition drives up prices for consumers. As fewer large players have controlled more of the market, mark-ups (charges over cost) have tripled.

“Families are paying higher prices for necessities, things like prescription drugs, hearing aids, and Internet service.”

The White House said higher prices and lower wages caused by lack of competition are now estimated to cost the median American household $5,000 per year.

Other highlights of the Executive Order are that the Federal Trade Commission (FTC) will be tasked with creating new rules on data collection.

The regulatory agency will also be asked to clamp down on unfair competition in online marketplaces.

The Biden administration as well wants consumers to have the right to repair their own devices.

The order encourages the agency to “limit powerful equipment manufacturers from restricting people’s ability to use independent repair shops or do DIY repairs, such as when tractor companies block farmers from repairing their own tractors.”

Meanwhile, the new Order requires the Department of Health and Human Services to evolve a plan to lower the cost of prescription drugs and prevent price gouging.

The rule equally pushes for states to be allowed to safely import prescription drugs from Canada, where medication costs are lower, and to allow for hearing aids to be sold over the counter.