The Great (Deregulatory) Escape: President Trump’s revocation of Executive Order on Competition

President Trump has revoked former President Biden’s Executive Order on competition policy under the guise that top down competition regulations and competition agency rule-making are a barrier to growth and innovation.

In reality, the Biden-era Executive Order had spurred more aggressive enforcement of US competition laws in an effort to promote competition in the economy. It included over 70 initiatives involving increased merger scrutiny, and tasking federal agencies to make rules on competitive practices in online markets. The Order aimed to lower prices, increase wages and help grow the economy, specifically referencing a number of sectors including agriculture, telecoms, prescription drugs, as well as Big Tech. Its purpose was to promote broader pro-competitive policy making across industries and remove barriers to entry, including State-created barriers.

The revocation was part of a series of Trump Executive Orders on deregulation. It indicates a shift in the federal government’s approach to competition policy, and a move away from regulatory scrutiny of US companies. There was no replacement Executive Order in support of competition or a roadmap setting out possible improvements or a reform agenda. The statements issued by the Heads of the US competition agencies applauded the removal of the Biden Order.

At a time when there should be more, not less, competition scrutiny of large companies, especially in the tech sector, this sends the wrong signal about regulatory scrutiny. It risks emboldening Big Tech companies to put even more pressure on competitors and press forward with potentially harmful acquisitions, especially in AI, safe in the knowledge that there is now a more favourable environment for their M&A deals.