Biden’s trade deal in Indo-Pacific may boost Big Tech monopolies, warn lawmakers.

Republicans and Democrats Speak Out Against Biden’s Trade Agreement

A coalition of congressional Republicans, including Sen. J.D. Vance (R-Ohio) and Rep. Ken Buck (R-Colo.), are speaking out against President Joe Biden’s proposed Indo-Pacific Economic Framework (IPEF). They argue that the agreement could further strengthen Big Tech monopolies and overstep the president’s authority. Sen. Josh Hawley (R-Mo.), along with Reps. Matt Gaetz (R-Fla.) and Paul Gosar (R-Ariz.), joined in condemning the IPEF in a letter to relevant U.S. officials.

Democrats, including Sen. Elizabeth Warren (D-Mass.), have also expressed concerns about the IPEF. In a separate letter, they warned that if Big Tech got their way on the agreement, it could limit the ability of U.S. regulators to enforce antitrust law.

The IPEF and Big Tech

The IPEF was launched by Biden in May 2022 and is similar to the now-defunct Trans-Pacific Partnership (TPP). Fourteen nations in the Indo-Pacific region have signed onto the IPEF economic initiative. Unlike other trade deals, the IPEF isn’t concerned with altering tariff rates for member nations, but is considered a precursor to that goal. The Biden administration also hopes to establish a set of competition policies for member nations.

However, Vance and Buck argue that this goal could further strengthen Big Tech firms, who already hold a monopoly over many online tools and platforms. They wrote in their letter that “Congress, not the President, has the constitutional prerogative to craft domestic policy in the antitrust space,” citing ongoing legislative efforts to do just that.

Big Tech’s Influence on International Deals

Big Tech platforms have often looked to international deals as a means to advance their own interests. Biden has proposed “whole-of-government” policies to support competition, but Democrats say that Big Tech efforts to influence the policies in the IPEF could challenge that.

In September 2022, the House of Representatives passed legislation that gave more power to states in antitrust cases and increased funding for federal antitrust regulators. Lawmakers tied this effort to Big Tech biases.

Conclusion

The debate over the IPEF highlights the ongoing struggle between Big Tech and regulators. While both Republicans and Democrats have expressed concerns about the agreement, the ultimate outcome remains to be seen. As the fight against Big Tech monopolies continues, it’s clear that international deals will continue to play a role in shaping the future of competition policy.