Executive Order on Promoting Competition in the American Economy

By the authority granted to me as President under the Constitution and laws of the United States, and with the objective of fostering a competitive and dynamic economy that benefits American workers, businesses, and consumers, the following directive is issued:

Section 1. Policy

A strong, open, and competitive marketplace has long been fundamental to the prosperity of the United States. However, increasing market concentration has created significant challenges, restricting economic freedoms, reducing accountability, and impacting the financial well-being of workers, farmers, small businesses, startups, and consumers alike.

A thriving economy requires fair competition. When markets remain competitive, workers have access to better job opportunities and higher wages. Small businesses and farmers gain more choices among suppliers and buyers, improving their financial stability. Entrepreneurs benefit from the freedom to innovate and introduce new ideas, fueling economic growth. Consumers enjoy broader options, improved services, and lower costs.

Robust competition is essential to maintaining the United States' position as a global economic leader. Yet, over the past few decades, industry consolidation has weakened competition, limiting economic opportunities and exacerbating disparities in income and wealth. Federal inaction has further allowed these issues to persist, negatively impacting workers, farmers, small businesses, and consumers.

Corporate consolidation has led to increased employer power, making it difficult for workers to negotiate wages or seek alternative job opportunities. Many employers enforce restrictive non-compete agreements, limiting worker mobility. Although some occupational licensing regulations serve to protect and enhance wages, overly stringent requirements create unnecessary barriers to employment and geographic mobility.

Agricultural sector consolidation has placed immense pressure on small family farms. Farmers face challenges from dominant corporations controlling supply chains, including seed, fertilizer, and equipment markets, as well as distribution channels. Consequently, farmers receive a shrinking share of their agricultural product value, reducing their financial sustainability.

In the technology sector, a small group of dominant online platforms wield significant control over digital markets. These companies restrict market entry, collect extensive user data, and leverage monopolistic pricing practices. Many small businesses rely on these platforms to operate, while local newspapers struggle to compete due to the concentration of digital advertising revenue.

Consumers in the United States pay significantly more for prescription drugs and healthcare services than those in other nations. Hospital mergers have left many communities—particularly rural areas—with fewer healthcare options at higher costs. Additionally, legal loopholes have been exploited to delay competition from generic drugs and biosimilars, preventing cost reductions for consumers.

The telecommunications industry is another sector affected by reduced competition, leading to higher prices for broadband, cable television, and related services. Similarly, financial services consumers face excessive and often hidden fees due to market consolidation. The global shipping industry has also consolidated, with a few major foreign-owned companies controlling container shipping, impacting U.S. exporters.

These issues, spanning multiple sectors, pose a serious risk to economic recovery and long-term prosperity. The COVID-19 pandemic has underscored the need for a resilient and innovative economy. At the same time, international competition is intensifying, with foreign monopolies and state-supported firms presenting new economic challenges.

To counteract these concerning trends, this order reinforces the commitment of my Administration to enforce antitrust laws, curb industry monopolization, and prevent anti-competitive practices. This applies to labor markets, agriculture, technology, healthcare, financial services, and other key industries affected by excessive market concentration.

Moreover, my Administration is committed to addressing challenges posed by new technologies, including dominant digital platforms that leverage mergers, data aggregation, and network effects to limit competition. The United States retains the legal authority to challenge previously completed transactions that violate antitrust laws, including the Sherman Antitrust Act, the Clayton Antitrust Act, and related legislation.

Our strategy for addressing foreign monopolies and cartels is not to tolerate domestic monopolization, but rather to strengthen competition and innovation within American industries. Additionally, we support legislative reforms aimed at reducing prescription drug costs, including granting Medicare the ability to negotiate prices, introducing inflation caps, and expanding public healthcare options.

This directive upholds previous policies outlined in Executive Order 13725 (April 15, 2016) and reaffirms the foundational principles of key antitrust and fair competition laws, such as the Sherman Act, Clayton Act, Packers and Stockyards Act (1921), Bank Merger Act, and Telecommunications Act

Section 2. Legal Framework for Comprehensive Competition Policy

(a) Antitrust laws, including the Sherman Act, Clayton Act, and the Federal Trade Commission Act, serve as the primary legal defenses against monopolistic practices in the U.S. economy.

(b) These laws embody a core principle: fostering competition is vital for economic efficiency, lower prices, higher quality, and overall national progress. As the Supreme Court noted in Northern Pac. Ry. Co. v. United States (1958), free market forces lead to optimal resource allocation, innovation, and democratic stability.

(c) In addition to general antitrust laws, Congress has enacted industry-specific competition regulations to address monopolistic tendencies in certain sectors. These include the Packers and Stockyards Act, the Bank Merger Act, the Drug Price Competition and Patent Term Restoration Act, the Shipping Act, and others.

(d) Federal agencies are tasked with enforcing these laws, promoting fair competition, and preventing monopolistic practices. Agencies responsible for oversight include:

  • Department of the Treasury
  • Department of Agriculture
  • Department of Health and Human Services
  • Department of Transportation
  • Federal Reserve System
  • Federal Trade Commission (FTC)
  • Securities and Exchange Commission (SEC)
  • Federal Communications Commission (FCC)
  • Federal Maritime Commission
  • Consumer Financial Protection Bureau
  • Surface Transportation Board

(e) Agencies influence market conditions through regulation, procurement processes, and enforcement actions to prevent market concentration. Federal oversight should include:

  • Preventing deceptive and unfair business practices
  • Opposing anti-competitive mergers and acquisitions
  • Encouraging market entry and innovation
  • Increasing transparency through required disclosures

(f) A whole-of-government approach is necessary to counteract monopolization and ensure fair competition across the economy. Agencies should adopt pro-competitive policies, remove unnecessary regulatory barriers, and ensure that procurement processes do not disadvantage new market entrants.

Section 3. Interagency Cooperation in Market Oversight

(a) Multiple federal agencies share jurisdiction over competition enforcement. They are encouraged to collaborate on investigations, policy development, and enforcement strategies to maximize efficiency and effectiveness.

(b) Agencies with overlapping oversight responsibilities should coordinate efforts regarding:

  • Investigations into anti-competitive conduct
  • Evaluation of mergers and acquisitions
  • Development and implementation of regulatory remedies

(c) To streamline cooperation, agencies should:

  • Share relevant data and industry insights
  • Solicit input from the Department of Justice and the FTC on major transactions
  • Align efforts with ongoing antitrust enforcement initiatives

(d) While collaboration is encouraged, each agency retains its independent authority to assess and enforce regulations in accordance with statutory mandates.

Section 4. Establishment of the White House Competition Council

(a) A White House Competition Council is established within the Executive Office of the President to coordinate federal efforts to address economic concentration and promote fair market competition.

(b) The Council will:

  • Implement administrative measures outlined in this directive
  • Facilitate agency cooperation on overlapping regulatory matters
  • Identify necessary legislative changes to support fair competition

(c) The Council will be led by the Assistant to the President for Economic Policy and will include key Cabinet members and agency heads responsible for economic and competition policy.

(d) The Council will convene regularly to assess progress and ensure consistent enforcement of competition laws.

Section 5. Conclusion

This directive mandates proactive enforcement of antitrust laws and the adoption of policies that promote competitive markets across the U.S. economy. Agencies are instructed to take necessary actions to remove anti-competitive barriers, encourage innovation, and protect consumers, workers, and small businesses from the harmful effects of monopolization.

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