The License Monopoly Prevention Act of 2025 amends the Export Control Reform Act of 2018 to require a competitive market review whenever a license to export, reexport, or in-country transfer technology is evaluated. The review determines whether granting the license would create a sole license for that technology to a single end user or end use and establishes conditions for issuing the license.
It also requires coordination between BIS and ITA and defines which congressional committees receive certification for license determinations. The bill further specifies how subsequent license applications for the same technology should be treated after a sole license is issued.
This is intended to prevent monopolistic licensing and to align licensing with market realities and allied regulatory frameworks.
At a Glance
What It Does
The Under Secretary of Commerce for Industry and Security must conduct a competitive market review when evaluating license applications for the export, reexport, or in-country transfer of the technology described in the statute. The review decides if the license would be the sole license for that technology and sets conditions for issuance.
Who It Affects
Directly affects license applicants for emerging/foundational technologies, BIS and ITA processes, and the end users and suppliers involved in controlled technology transfers.
Why It Matters
It addresses perceived monopolies in licensing by ensuring competition, improving licensing integrity, and aligning U.S. export controls with shared regulatory standards among allies.
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What This Bill Actually Does
The bill changes how the federal government reviews license requests for emerging and foundational technologies. It adds a formal competitive market review to determine whether a license would give one company exclusive rights to export or transfer a given technology to a specific end user.
If only one application exists, the government must determine whether that sole license is justified; if multiple applications exist, the technologies must be different enough to merit separate consideration. The review requires coordination between BIS and ITA and designates which congressional committees will receive the certification of the review outcome.
If a sole license is granted for a technology, future license requests for that same technology can be approved only if doing so does not introduce new risks. The overall aim is to prevent monopoly licensing and to produce fairer, more predictable licensing outcomes that remain aligned with national-security and foreign-relations goals.
The bill anchors these changes in the Export Control Reform Act of 2018 and sets forth the procedural steps for both initial and subsequent license applications.
The Five Things You Need to Know
The bill adds a Competitive Market Review to Section 1758(b)(3) of the Export Control Reform Act of 2018.
Issuance of a sole license hinges on a certification to Congress that either no other application exists or that other applications cover different technologies.
A mandatory consultation with the Under Secretary of Commerce for International Trade accompanies the market review.
‘Appropriate congressional committees’ are defined as Senate Banking, Housing, and Urban Affairs and the House Foreign Affairs Committee.
Subsequent license approvals for the same technology can proceed only if they do not introduce a new risk not present at the time of the original license.
Section-by-Section Breakdown
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Findings and Sense of Congress
This section lays out the rationale for the bill. It notes that the Bureau of Industry and Security maintains an Entity List with entities subject to license requirements and highlights concerns about monopoly licenses that could distort markets and undermine credibility and regulatory cooperation with allies. It then states the sense of Congress that BIS should coordinate with the International Trade Administration to conduct a competitive market review when evaluating a license request to ensure that the license would not confer exclusive rights to a single applicant for similarly situated end users.
Competitive Market Review: General Rule
The bill adds a new requirement to Section 1758(b)(3) of the Export Control Reform Act. When evaluating a license for export, reexport, or in-country transfer of technology, BIS must conduct a competitive market review to determine whether the license would be the sole license for that technology to the end user or end use. Issuance is allowed only if the Under Secretary certifies that no other applicable license exists or that multiple applications involve technologies that are sufficiently distinct to warrant separate consideration. The review must be conducted in consultation with the ITA and must reference the definitions of the relevant congressional committees.
Subsequent Licenses for the Same Technology
After issuing a sole license for a given technology, BIS must approve subsequent license applications for the same technology unless such approval would introduce a new risk or concern not present at the time of the original license. This provision ensures that licensing remains adaptable while guarding against new vulnerabilities or market distortions.
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Explore Technology in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- U.S. technology exporters seeking licenses for emerging and foundational tech benefit from a process that discourages monopolistic licensing and provides more predictable outcomes.
- Small and mid-sized tech firms gain a fairer licensing environment, reducing barriers created by exclusive licenses.
- BIS and ITA gain clearer, more credible guidance for market-based licensing and enhanced coordination between agencies.
Who Bears the Cost
- BIS and ITA resources may be stretched to conduct thorough market reviews, potentially increasing administrative costs and processing times.
- Large incumbents with monopoly advantages may face delayed licensing or loss of exclusive rights due to the competitive-review requirement.
- Exporters may experience additional, though justified, delays as market reviews are conducted and licenses are evaluated under stricter standards.
Key Issues
The Core Tension
Balancing robust, competitive licensing with the urgent, security-focused goals of export controls: expanding market review processes can curb monopolies but may slow approvals and complicate risk management.
The bill introduces a more structured, market-based approach to export licensing, but that shift comes with potential implementation challenges. Requiring a competitive market review could slow license decisions in some cases, particularly where multiple applications exist or where technology boundaries are ambiguous.
The coordination requirement between BIS and ITA adds a layer of interagency process that will need clear governance, funding, and internal procedures to avoid bottlenecks. The scope of what constitutes a “different technology” for purposes of separate consideration will be central to how the rules are applied in practice and may invite disputes over technical distinctions.
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