President Biden will strike with his pen once again in the executive order targeting big tech on July 9. The signing will impact completed and future mergers alike, and ultimately play a role in the changing state of net neutrality.
The executive order is poised to deliver ramifications for tech companies and the users they serve.
Biden readies his pen to sign an executive order limiting the power of big tech
On July 9, Biden came forward with plans to sign an executive order. The primary goal is to promote competition in the American economy. Reports suggest there are 72 initiatives that will make this happen, but the gist revolves around big tech companies gaining so much power that they're squeezing out the little guys.
Any future mergers that big tech is involved in will be scrutinized more closely and might not get approved easily. The order is also retrospective, which means that past mergers are up for scrutiny from the FTC.
Big tech isn't the only target in this executive order
Biden's executive order will expand beyond big tech. It also targets companies in the healthcare and transportation sector, but there isn't any denying that big tech reserves the most focus.
How personal data plays into the big tech issue
The executive order says that big tech companies are gathering an excessive amount of personal information from individual users. The FTC will be heavily involved in redefining limitations for companies on gathering consumer data.
What the Biden executive order has to say about net neutrality
The FCC (Federal Communications Commission) will also be involved in instituting the changes imposed by the executive order. Specifically, they will be asked to redefine broadband internet rules that apply to providers. They will also be encouraged (although not required) to adopt net neutrality rules.
Net neutrality refers to the open internet. It says that internet service providers must maintain consistent rules across the web, and shouldn't increase prices or decrease capabilities for certain services.
The FCC actually instituted a net neutrality law in 2015, but the Trump administration targeted and eliminated the law shortly after then-President Trump took his post.
Biden prepares to sign the executive order
Biden has made an appointment to sign the executive order targeting big tech at 1:30 p.m. ET on July 9 in the State Dining Room of the White House.
Officials appointed Lina Khan to her role as FTC chair a few months ago. This new executive order from the Biden administration aligns with Khan's dogma about big tech.
Khan is outwardly opposed to many behaviors of big tech players like Amazon, Facebook, Google, and Apple. Executives from these companies have even suggested that Khan stay out of antitrust lawsuits they're involved in due to her previously ascertained bias toward the big tech structure. However, the FTC's involvement in the executive order resolutions mean that she will undoubtedly play a part in the future fate of big tech companies, in or out of the courtroom.