The US Federal Trade Commission

The US Federal Trade Commission (FTC) is a federal agency established in 1914 tasked with protecting consumers and promoting competition. It aimed to fight against deceptive advertising, unfair business practices, and antitrust violations, but has historically faced criticism in its effectiveness with political pressures and regulatory capture by powerful industries.  

However, under the purview of chairperson Lina Khan and its current committee, the FTC has seen a resurgence in effectiveness and pro-activity. It recently introduced policies that banned non-compete agreements for regular workers that businesses would leverage to lower wages and working conditions. Following her appointment as chairperson, both Amazon and Facebook petitioned the FTC for her recusal from their investigations, citing her past criticism as a source of potential bias. Senator Elizabeth Warren along with other Khan supporters argued that these demands are attempts by the companies to intimidate her and reduce regulatory scrutiny.

A key component of the FTC’s effect has been their record number of mergers blocked on antitrust grounds. In 2021, it intervened in the healthcare sector by stopping DaVita, a major dialysis provider in Utah, from acquiring more clinics and engaging in anti-competitive hiring practices. The FTC ordered DaVita to sell three clinics and seek approval for future acquisitions. In September 2023, the FTC challenged Amgen's $27.8 billion acquisition of Horizon, fearing it would bundle Horizon's drugs with its own, stifling competition. Most recently, the FTC intervened in the biggest shale oil and gas merger ever -  ExxonMobil's $60 billion purchase of Pioneer Natural Resources by barring Pioneer's chairman from joining ExxonMobil's board to prevent price manipulation. 

While the FTC's efforts are undoubtedly aimed at benefiting society, it has faced criticism for not being able to block Microsoft's $75 billion acquisition of Activision-Blizzard, a prominent game studio known for Call of Duty and Candy Crush. This perceived failure highlights the challenges in the FTC's high-profile battles against big tech companies like Amazon, Apple, Google, Meta, and Epic Games. Despite these setbacks, the FTC's resurgence reflects a renewed commitment to regulating powerful corporations and protecting consumer interests, even as it sparks debate about its impact on businesses and American capitalist ideals.