Federal Trade Commission Chairman Andrew N. Ferguson delivered a comprehensive report to the White House Office of Management and Budget on Tuesday, recommending the deletion or revision of anticompetitive regulations across the federal government. The submission responds directly to President Trump's Executive Order on Reducing Anticompetitive Regulatory Barriers, which directed the FTC to identify regulations that harm market competition.
The executive order tasked the commission with finding unnecessary regulations that exclude new market entrants, protect dominant incumbents, and predetermine economic winners and losers as a preliminary step toward repealing them. The FTC's report represents the first major regulatory review under the Trump administration's renewed focus on reducing federal oversight that officials argue stifles business competition.
"President Trump's Executive Order recognizes that heavy-handed regulations can hurt competition, including by entrenching incumbent firms, raising costs for new entrants, and discouraging innovative new ways to serve customers," said FTC Bureau of Competition Director Daniel Guarnera. He emphasized that competitive markets lower costs for consumers, improve product quality, and drive innovation.
The FTC identified specific examples of regulations recommended for deletion or modification across multiple federal agencies. Among the targeted rules are Biden-era Department of Transportation regulations that give preference to businesses owned by "socially and economically disadvantaged individuals" when awarding contracts for transportation projects. The commission argues these preferences prevent free competition based on merit.
The Department of Education also faces scrutiny for regulations that permit colleges and universities to include textbook and supply costs as part of annual tuition. The FTC contends these rules prevent students from saving money by purchasing textbooks through alternative channels, effectively creating a captive market for institutional bookstores.
Proposed Consumer Product Safety Commission regulations requiring table saws to use expensive finger-detection technology controlled by a single patent holder drew particular criticism. The FTC views this requirement as potentially creating a monopolistic advantage for the patent holder while raising costs for manufacturers and consumers.
The commission also targeted a Forest Service handbook establishing eligibility requirements that inhibited entry from younger generation ranchers. This rule exemplifies how regulations can create barriers for new market participants attempting to enter established industries.
Guarnera noted that the FTC's engagement with citizens across the country and agencies throughout the federal government highlighted the importance of scrutinizing regulations to ensure they don't distort healthy competition. The commission's review process involved collaboration with various stakeholders to identify rules that may inadvertently harm market dynamics.
The regulatory review represents a sharp departure from the previous administration's approach to federal oversight. The Biden administration had implemented many of the targeted regulations as part of efforts to promote social equity and consumer safety. The Trump administration's focus on deregulation reflects a philosophical shift toward reducing government intervention in markets.
The report now undergoes review at the Office of Management and Budget, which will evaluate the recommendations before any regulatory changes take effect. The OMB review process typically involves coordination with affected agencies and assessment of the potential economic impacts of proposed changes.
For businesses, the deregulation initiative could reduce compliance costs and eliminate barriers to market entry. New companies may find it easier to compete with established firms if regulatory preferences and requirements are eliminated. However, critics argue that some regulations serve important purposes beyond competition, including promoting diversity and protecting consumer safety.
The FTC indicated it will continue working collaboratively with OMB and relevant federal agencies to rescind or revise regulations as appropriate. This ongoing partnership suggests the regulatory review will be an iterative process rather than a one-time assessment.
Consumers may see mixed effects from the proposed changes. While increased competition could lead to lower prices and more innovative products, the elimination of certain safety requirements or diversity preferences might have other consequences. The table saw regulation, for example, was designed to prevent serious injuries, though the FTC argues it creates anticompetitive effects.
The initiative reflects broader Republican priorities around reducing federal regulatory burden on businesses. The Trump administration has consistently argued that excessive regulation stifles economic growth and innovation by making it difficult for new companies to enter markets and compete effectively.
The timing of the report submission, just days into the new administration, demonstrates the priority placed on regulatory reform. The FTC's quick response to the executive order signals that deregulation will be a central focus of federal trade policy under the Trump administration.
As the OMB reviews the recommendations, affected industries and consumer groups will likely weigh in on the proposed changes. The ultimate scope and timing of any regulatory rollbacks will depend on the review process and potential legal challenges to significant rule changes.
The FTC's report marks the beginning of what could be an extensive deregulation effort across multiple sectors of the economy, potentially reshaping how federal agencies approach market oversight and business regulation.