Meet the New FTC—Same as the Old FTC
Federal Trade Commission (FTC) Chair Andrew Ferguson announced Tuesday that the 2023 joint merger guidelines adopted by the Biden administration’s FTC and Department of Justice (DOJ) are still in effect. While continuity in merger policy is crucial for economic decision making, the 2023 guidance abandons the consumer welfare standard for an anachronistic approach based on market shares. The Trump administration should not perpetuate the Biden administration’s error.
The FTC and DOJ published their first joint guidelines in 1992. There have only been three revisions since. Ferguson explains that the continuity of these guidelines between administrations avoids “a recriminatory cycle of partisan rescissions” that frustrates the ability of businesses to plan. The deluge of filings submitted to the FTC’s Premerger Notification Office in advance of the Commission’s updated transaction thresholds and filing fees is evidence of this uncertainty; submitting before the most recent filing change saved firms over $100,000 on multi-billion-dollar mergers. Ferguson’s concern about inconstant merger guidelines is well founded, but he ignores that the 2023 guidelines are themselves economically harmful.
Daniel Gilman, senior scholar of competition policy at the International Center for Law and Economics (ICLE), explains that merger guidelines are not fe
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
