The Biden administration on Wednesday proposed new guidelines for corporate mergers, took steps to disclose the junk fees charged by landlords and launched a crackdown on price-gouging in the food industry.
The announcements will be discussed as part of President Joe Biden's scheduled meeting with the White House Competition Council, a group of officials established under a 2021 executive order.
The council has focused on creating more transparency for consumers and finding approaches to limit the concentration of industries in ways that the Biden administration says lead to higher prices and hurt the ability of start-ups and small businesses to grow. Republican lawmakers and some business group critics counter that the Democratic president's effort will lead to greater regulatory costs that leave the economy worse off.
The Department of Justice and the Federal Trade Commission are proposing revised guidelines for how they evaluate mergers. Their goal is to provide more clarity on the impact mergers can have on workers and to update the guidance for a digital economy that is shaped by companies such as Apple, Amazon, Alphabet and Meta.
The government first issued its guidance on mergers in 1968. Officials stressed that the new guidance conforms to the laws set by Congress and the precedents of court rulings.
Republican lawmakers have accused FTC Chair Lina Khan of “harassing” Twitter since it was acquired by billionaire Elon Musk. They say her push to break up the concentration of corporate power amounts to government interference in business practices. Khan has said such interventions will enable more competition within the U.S. economy in ways that are positive for consumers, workers and new businesses.
Attorney General Merrick Garland said that the proposed guidelines “respond to modern market realties” and that “unchecked" mergers could threaten “the free and fair markets upon which our economy is based.”
Separately, the government is working with the companies Zillow, Apartments.com and AffordableHousing.com to create a new website that reveals to renters all of the fees they could be charged when signing a lease.
The effort comes from concerns that many renters find themselves surprised by what the administration calls hidden junk fees for background credit checks, paying their rent online or trash collection. The administration's goal is for renters to know how much they're being charged so that they can make better choices.
The Department of Agriculture is partnering with more than two dozen state attorneys general to investigate and sanction price gouging in the food sector. The department is also creating a new liaison for farmers to discuss the patent process regarding seeds.
The White House has said its broader efforts have led to more entrepreneurship. In the wake of the coronavirus pandemic and a historic series of relief packages, there were 10.5 million applications to start new small businesses in 2021 and 2022, the best two years on record.
But the greater degree of government activism has been controversial with business groups, which say that these new companies might struggle to survive and that higher regulatory costs might cause prices to rise.
After the last meeting of the competition council, the U.S. Chamber of Commerce's chief policy officer, Neil Bradley, said, “this Washington-knows-best approach will raise prices for families, lead to fewer choices for consumers, and make our economy less competitive.”
Many U.S. consumers say they’ve noticed higher than usual prices for holiday gifts in recent months, according to a a December poll from The Associated Press-NORC Center for Public Affairs Research. A contributing factor is the unusually high import taxes the Trump administration put on foreign goods. While the worst-case consumer impact that many economists foresaw from the administration’s trade policies hasn’t materialized, some popular gift items have been affected more than others. Most toys and electronics sold in the U.S. come from China. So do most holiday decorations. Jewelry prices have risen due to the cost of gold.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
President Donald Trump has signed an executive order to block states from regulating artificial intelligence. He argues that heavy regulations could stifle the industry, especially given competition from China. Trump says the U.S. needs a unified approach to AI regulation to avoid complications from state-by-state rules. The order directs the administration to draw up a list of problematic regulations for the Attorney General to challenge. States with laws could lose access to broadband funding, according to the text of the order. Some states have already passed AI laws focusing on transparency and limiting data collection.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
House Republicans in key battleground districts are working to contain the political fallout expected when thousands of their constituents face higher bills for health insurance coverage obtained through the Affordable Care Act. For a critical sliver of the GOP majority, the impending expiration of the enhanced premium tax credits after Dec. 31 could be a major political liability as they potentially face midterm headwinds in a 2026 election critical to President Donald Trump’s agenda. For Democrats, the party’s strategy for capturing the House majority revolves around pinning higher bills for groceries, health insurance and utilities on Republicans.
