Senators Rick Scott and Elizabeth Warren have introduced the License Monopoly Prevention Act, a bipartisan bill aimed at increasing transparency in the export licensing process for sensitive technologies. The legislation would require the Bureau of Industry and Security (BIS) to conduct a competitive market analysis when reviewing license applications to export, reexport, or transfer key technologies to entities listed on the Commerce Department’s Entity List.
The BIS currently manages export controls to regulate who can send certain goods abroad, particularly those with military or dual-use potential. However, there have been cases where “monopoly” licenses were issued unintentionally, granting exclusive rights to a single company to sell specific products to restricted entities without considering the broader market impact.
Senator Rick Scott stated, “Export controls should protect American manufacturing and national security, not allow the government to choose winners and losers in the market place and funnel billions to a few big companies. The United States has adversaries like Communist China that are constantly working to undermine our markets, steal our technology, and dominate emerging industries like artificial intelligence. For the United States to be a leading force, we must support American businesses, entrepreneurs, and encourage competition on every level. Our bipartisan bill, the License Monopoly Prevention Act, adds transparency to the export licensing process and calls for a competitive market analysis, so our government can make decisions that protect our national security without crippling companies and our markets.”
Senator Elizabeth Warren added: “Far too often, the Commerce Department issues export control licenses that give a small number of big businesses an unfair advantage over their competitors. This bill would help ensure that export control licensing is even-handed and protects our national security instead of distorting our markets and creating monopolies that hurt consumers.”
The proposed legislation seeks to prevent future instances where exclusive licenses could distort competition or limit opportunities for other U.S. companies.
