1 of 4 | At the White House on Wednesday, President Joe Biden convenes a meeting of his Competition Council to announce new actions by his administration to increase competition in the American economy, lower prices for consumers, and help entrepreneurs and small businesses have a better chance to thrive. Photo by Samuel Corum/UPI |
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July 19 (UPI) -- President Joe Biden said Wednesday that Americans are "tired of being played for suckers" as he announced new measures that aim to lower the cost of food and rent by cracking down on anti-competitive practices in the agriculture and housing industries.
"Just four supermarket companies control over a third of the market nationwide, and it's even more concentrated at the local level where consumers have had even fewer stores to choose from," Biden said in a speech before the Competition Council.
"Grocers in consolidated markets charge you more because you have nowhere else to shop," he said.
Biden said the U.S. Department of Agriculture and partners in the states are going to prevent large companies from artificially raising prices through price fixing and price gouging.
"Second, we're cracking down on junk fees and rental housing. Folks at home know having to pay $100 or more just to fill out a rental application even though a credit check costs as low as $20," Biden said. "Application fees can be a profit center for landlords."
Many landlords accept applications from hundreds of potential applications, which Biden said is "far more than they can seriously consider." He also accused landlords of charging surprise fees for standard services such as pest control.
"It's simply not right, and we're going to move on it," Biden said.
The Justice Department and Federal Trade Commission proposed more than a dozen new guidelines to update federal enforcement procedures on mergers and acquisitions, ensuring compliance with antitrust laws by determining a merger's effect on competition in the new 21st Century economy, the White House said.
"Anti-competitive mergers can hurt people and drive up costs, as well," Biden said in his afternoon speech.
The actions come one week after a federal judge blocked an attempt by the FTC to stop Microsoft from acquiring video game publisher Activision Blizzard, denying the government motion for a temporary injunction that would have halted the deal.
The proposed policy changes will be open for public comment for the next 60 days.
"Open, competitive, resilient markets have been a bedrock of America's economic success and dynamism throughout our nation's history," said FTC Chair Lina M. Khan. "Faithful and vigorous enforcement of the antitrust laws is key to maintaining that success. With these draft Merger Guidelines, we are updating our enforcement manual to reflect the realities of how firms do business in the modern economy."
Attorney General Merrick Garland said the new measures were designed to keep pace with a rapidly evolving global economy.
"Unchecked consolidation threatens the free and fair markets upon which our economy is based," Garland said. "These updated Merger Guidelines respond to modern market realities and will enable the Justice Department to transparently and effectively protect the American people from the damage that anticompetitive mergers cause."
The government's actions were being taken to address a growing concentration of resources in more than 75% of U.S industries, the White House said.
The new guidelines will also offer increased clarity about how law enforcement agencies evaluate mergers under antitrust laws.
The administration is betting that more robust antitrust enforcement efforts will result in lower prices, higher wages, and increased innovation across the broader economy.
The White House Competition Council, a bipartisan body, will meet Wednesday in an effort to eliminate junk fees -- including housing fees, application fees and convenience fees for apartments that may no longer be available.
In a major change, U.S. housing giants Zillow, Apartments.com, and AffordableHousing.com have agreed to launch new website features that will disclose all fees upfront to prospective renters, the White House said.
"They've joined us to take action against these companies," Biden said in his speech.
In the coming days, the Council of Economic Advisers will issue a briefing on the revised antitrust guidelines that was expected to support the new approach based on current economic data.
The Department of Housing and Urban Development has issued a report on rental junk fees, with strategies to address the problem.
The Agriculture Department is also partnering with more than two dozen state attorneys general to snuff out price-gouging and other anticompetitive practices in food markets while earning farmers a better payday for their crops.
