The Federal Trade Commission (FTC) has taken center stage in the U.S. regulatory landscape under President Joe Biden’s administration, actively pursuing antitrust enforcement and consumer protection. Led by Chair Lina Khan, an outspoken critic of monopolistic practices, the FTC under Biden has challenged major corporate consolidations, implemented consumer-friendly rules, and sought to limit Big Tech's market power. However, with Donald Trump preparing to take office once again, significant changes in the FTC’s approach are expected. Trump’s administration is anticipated to adopt a more business-friendly stance, easing some of the strict antitrust policies of the previous administration while maintaining selective oversight of Big Tech due to ongoing bipartisan concerns.
This article examines the contrasting strategies of the Biden and Trump administrations in guiding the FTC, focusing on antitrust, consumer protection, and Big Tech. We’ll explore Biden’s key initiatives, anticipated policy shifts under Trump, and the potential impact on businesses, consumers, and the overall economy.
The FTC Under Biden: Aggressive Antitrust and Consumer Protection Reforms
Under Biden, the FTC transformed into a proactive regulatory force with a focus on challenging corporate power and promoting market competition. Chair Lina Khan’s tenure has been characterized by a tough stance on monopolies, high-profile lawsuits against tech giants, and the introduction of new consumer protections.
Key Initiatives and Actions
Blocking Major Mergers and Corporate Consolidation:
Biden’s FTC pursued a vigorous campaign against corporate consolidation, particularly in the technology and retail sectors. The agency blocked Nvidia’s proposed $40 billion acquisition of ARM Holdings in 2022, citing concerns that it would stifle competition in the semiconductor industry, which is critical to tech innovation. In 2024, the FTC also opposed the Kroger-Albertsons merger, warning that it could drive up grocery prices and reduce consumer choices, particularly in low-income communities. These moves represented a shift away from the traditional view that larger companies can bring efficiencies, focusing instead on protecting market competition.
Targeting "Junk Fees" and Subscription Traps:
The FTC under Biden also targeted hidden fees that burden consumers, often referred to as "junk fees." These include charges that appear at the end of transactions for services like ticketing, travel, and subscription renewals. In line with this, the FTC introduced the "click-to-cancel" rule, simplifying the process for consumers to cancel unwanted subscriptions. This rule aimed to prevent companies from trapping customers in subscriptions with convoluted cancellation processes, a common frustration among consumers.
Proposing a Ban on Non-Compete Clauses:
To promote labor mobility and enhance competition in the labor market, the FTC proposed a ban on non-compete clauses, which restrict workers from joining rival firms after leaving a job. This measure was designed to increase job flexibility and prevent companies from limiting employee options. While this proposed rule faced legal challenges and pushback from business groups, it showcased the FTC’s commitment to policies that benefit workers and reduce corporate control over labor.
Aggressive Litigation Over Settlements in Merger Cases:
Khan’s FTC largely moved away from the "settlement culture" that had previously characterized U.S. merger enforcement. Instead, the agency frequently opted for full litigation to challenge mergers it viewed as harmful to competition. This approach was evident in cases involving major tech and retail companies, where the FTC pursued court action rather than negotiated settlements, aiming to create a stronger deterrent against anti-competitive mergers.
Criticisms and Challenges
Biden’s FTC faced substantial criticism, particularly from the business community and conservative lawmakers who argued that Khan’s policies stifled economic growth and created regulatory uncertainty. A report by the House Oversight Committee accused Khan of politicizing the agency, aligning it closely with Biden’s agenda, and overstepping its statutory authority with aggressive rulemaking. Critics pointed out that morale within the FTC had reportedly declined, as some staff members were disillusioned with the agency’s new direction. Additionally, some of the FTC’s initiatives, like the proposed ban on non-compete clauses, faced significant legal challenges, complicating their implementation.
Expected Changes Under Trump: A Shift Toward Deregulation and Business-Friendly Policies
With Donald Trump returning to office, the FTC’s approach to antitrust enforcement and consumer protection is expected to shift significantly. Trump is likely to replace Lina Khan with a new FTC Chair, possibly someone like Gail Slater or Mark Meador, who are seen as more business-friendly and less inclined toward aggressive regulatory actions.
Anticipated Policy Shifts
Relaxed Antitrust Enforcement on Mergers and Acquisitions:
Trump’s FTC is expected to take a more lenient approach toward mergers and acquisitions. Wall Street anticipates a more favorable environment for corporate consolidations, as Trump’s first administration was known for allowing significant mergers to proceed, such as the T-Mobile/Sprint merger. Under Trump, the FTC may favor conduct remedies over outright blocking mergers, allowing companies to consolidate while agreeing to certain conditions to protect competition. This shift could encourage more M&A activity, particularly in sectors like telecommunications, healthcare, and retail.
Selective Scrutiny of Big Tech:
Although Trump’s FTC is expected to be more business-friendly, Big Tech may still face some level of scrutiny due to bipartisan concerns over the influence of tech giants. The dominance of companies like Google, Meta, and Amazon has led to bipartisan support for measures to curb their power. However, rather than pursuing aggressive litigation, the Trump administration may prefer to negotiate settlements with these firms, seeking compromises that address competitive concerns without severely restricting business operations.
Scaling Back of Consumer Protection Regulations:
Under Biden, the FTC introduced several new consumer protection rules, including regulations targeting junk fees, subscription traps, and non-compete clauses. Trump’s FTC, however, is expected to roll back some of these regulations, arguing that they impose unnecessary burdens on businesses. For example, the "click-to-cancel" rule and the ban on non-compete clauses may be re-evaluated, with Trump’s administration likely favoring a more hands-off approach to consumer protection, emphasizing deregulation over direct intervention.
Emphasis on Due Process and Independence:
Trump’s appointees to the FTC are likely to prioritize restoring the agency’s traditional role as a neutral enforcer rather than a partisan tool. This could involve scaling back on the FTC’s rulemaking ambitions and focusing on due process and fairness. Trump’s FTC may avoid administrative litigation in favor of negotiated settlements, which would allow businesses more flexibility and reduce the risk of prolonged legal battles.
Balancing Deregulation with Bipartisan Big Tech Oversight
While Trump’s administration is expected to relax many of the FTC’s policies, Big Tech oversight might continue to a degree due to bipartisan support for addressing tech monopolies. Many of the current antitrust cases involving Big Tech originated during Trump’s first term, and Trump’s administration may choose to continue these efforts, albeit with a preference for settlements and less combative tactics than those favored by Khan.
The Broader Impact: How These Changes Will Affect Businesses and Consumers
The shifts in FTC policy under Biden and Trump have significant implications for both businesses and consumers.
For Businesses:
Under Trump’s anticipated leadership, businesses could experience a more predictable, lenient regulatory environment. Mergers and acquisitions, in particular, may face fewer hurdles, allowing companies to pursue growth strategies without the constant threat of legal challenges. However, Big Tech firms should still expect some scrutiny, though they may find Trump’s FTC more open to negotiated settlements. Overall, this approach could encourage business expansion but might reduce market competition in certain industries.
For Consumers:
Biden’s FTC introduced several rules aimed at protecting consumers, including the "click-to-cancel" rule and regulations on junk fees. These protections could be scaled back under Trump, potentially leading to a market where consumers face fewer restrictions but also fewer safeguards. For instance, subscription traps may become harder to escape, and non-compete clauses might remain in place, limiting job mobility for some workers. The relaxation of consumer protection rules might reduce business costs, which could theoretically lead to lower prices, but it could also expose consumers to less transparent practices.
For Big Tech and the Economy:
Big Tech companies may find Trump’s FTC less aggressive, with fewer antitrust lawsuits and more opportunities for settlement. This could allow tech giants to continue expanding without facing the same level of regulatory resistance as they did under Biden. However, bipartisan pressure on Big Tech remains high, meaning that even Trump’s business-friendly FTC might impose some limits on monopolistic practices, especially in cases that involve data privacy and market control.
Looking Forward: Will Bipartisan Concerns Shape Future Antitrust Policies?
One question that remains is whether bipartisan support for antitrust enforcement will lead to lasting change in how the FTC regulates monopolistic practices. Biden’s FTC marked a decisive shift toward robust antitrust enforcement, moving away from the more permissive attitude that had dominated for decades. However, with Trump’s administration poised to take a more lenient approach, the fate of aggressive antitrust reform remains uncertain.
Big Tech remains a focal point of bipartisan concern, meaning that some level of oversight is likely to continue regardless of the administration. If Trump’s FTC adopts a balanced approach—favoring business-friendly policies while maintaining a degree of scrutiny over Big Tech—it could signal a long-term shift toward moderate, bipartisan-driven antitrust enforcement.
Final Thoughts
As the FTC transitions from Biden to Trump, expect significant changes in regulatory priorities. Biden’s FTC, led by Lina Khan, focused on aggressive antitrust enforcement and consumer protections. In contrast, Trump’s administration is expected to favor a pro-business, deregulatory approach, particularly with respect to mergers and consumer regulations. However, bipartisan concerns about Big Tech could sustain some level of oversight in this sector, potentially balancing Trump’s deregulation agenda.
Businesses and consumers alike should prepare for these shifts, which could bring both opportunities and challenges. The evolving role of the FTC reflects broader political dynamics, where each administration’s vision shapes the balance between competition, consumer rights, and corporate growth.
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