Biden administration ramps up antitrust efforts
Collusion could be fueling rising costs
WASHINGTON — Senior Biden administration officials, alarmed by the rising costs of consumer staples, are ramping up efforts to police corporate monopolies and alleged collusion by big companies, arguing a crackdown on corporate malfeasance will translate into cheaper goods.
In response to requests by the White House economic team, Federal Trade Commission Chair Lina Khan announced Monday regulators would step up enforcement on oil and gas companies they believe may be colluding to raise fuel costs.
White House National Economic Council Director Brian Deese is leading a review of what might be done to alleviate soaring food prices, working with the Agriculture Department on measures to prevent large agricultural processors and meatpackers from squeezing consumers and farmers.
President Joe Biden has also ordered U.S. transportation agencies to root out anticompetitive behavior in the shipping industry, optimistic new entrants into the sector will reduce the meteoric delivery costs hurting many small businesses.
The push to use federal competition laws to lower prices reflects both Mr. Biden’s long-standing commitment to antitrust policy and also the growing political and economic danger the administration sees in sustained high prices. Senior administration officials have been worried about polling showing voters — including many Democrats — blame Mr. Biden’s economic policies for high inflation as the economy tries to bounce back from the coronavirus pandemic.
Both publicly and privately, administration officials remain convinced inflationary pressures primarily represent a shortterm problem that will subside with time. But even if temporary, the current price hikes have no obvious immediate solution — given supply chain bottlenecks could take years to unwind — and have created consternation among some centrist Democrats about the administration’s multitrillion-dollar spending agenda.
Aggressive antitrust enforcement represents one avenue where the administration can act without congressional approval while demonstrating it is trying to head off the issue.
In a speech earlier this month, Mr. Biden cited his push to have the FTC “address any illegal conduct that might be contributing to price increases at the pump.” He added his executive order from July “opens up competition in the agricultural business, gives more farmers a chance to compete — which will give Americans more food choices at lower cost.” The president has been adamant about antitrust policy since before the presidential campaign, but the issue has taken on new urgency given the current price increases.
“I’ve directed my administration to crack down on what some major players are doing in the economy that are keeping prices higher than they need be,” Mr. Biden said.
Some experts are skeptical the antitrust efforts will resolve high prices, particularly in the short term.