License Monopoly Prevention Act of 2025
Summary
The License Monopoly Prevention Act of 2025 aims to amend the Export Control Reform Act of 2018. It seeks to introduce a competitive market review process for applications to export, re-export, or transfer emerging and foundational technologies. This review is intended to prevent the inadvertent creation of monopoly licenses, where a single company gains exclusive rights to sell specific products to entities on the Bureau of Industry and Security's Entity List.
Expected Effects
The Act would require the Under Secretary of Commerce for Industry and Security to conduct a competitive market review in coordination with the Under Secretary of Commerce for International Trade. This review would assess whether granting a license would result in a single applicant holding the sole license for exporting a particular article to similarly situated end-users. The Act also outlines procedures for handling subsequent license applications for the same technology.
Potential Benefits
- Promotes Fair Competition: Prevents the establishment of monopoly licenses, fostering a more competitive market for technology exports.
- Enhances Credibility: Reduces the perception of favoritism within the Bureau of Industry and Security, bolstering its credibility.
- Strengthens Alliances: Facilitates collaboration with allies and partners by ensuring a fair and transparent regulatory environment.
- Mitigates Market Distortions: Addresses potential distortions in the market caused by monopoly licenses, promoting economic stability.
- Reduces Vulnerabilities: Aims to reduce economic and security vulnerabilities associated with single-source technology exports.
Potential Disadvantages
- Increased Bureaucracy: The competitive market review process may add bureaucratic layers, potentially slowing down the export licensing process.
- Uncertainty for Businesses: Companies may face uncertainty regarding license approvals due to the additional review requirements.
- Potential for Litigation: Disputes over what constitutes 'separate technologies' could lead to legal challenges.
- Resource Intensive: Conducting competitive market reviews may require significant resources from the Department of Commerce.
- Risk of Over-Regulation: The Act could lead to overly strict regulations that stifle innovation and harm U.S. competitiveness.
Constitutional Alignment
The Act aligns with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate commerce with foreign nations. By amending the Export Control Reform Act, the License Monopoly Prevention Act seeks to ensure fair competition in international trade, which falls under the purview of congressional authority. The Act does not appear to infringe upon any individual liberties or rights protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).