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
I couldn’t be more concerned about the Biden Federal Trade Commission’s insistence on regulating, using, and abusing honest individuals and businesses that it deems harmful to its political interests.
In 2021, the agency rescinded the consumer welfare standard, the governing philosophy, which stated that the agency would only intervene in the economy when deemed necessary to protect consumers from predatory pricing, monopolies, and the like. This recission has allowed the FTC to conduct a whole host of activities that can’t be described as anything other than big government foul play.
First, the commission went after Elon Musk for standing up against the Biden administration’s anti-free-speech bullying tactics.
The FTC demanded that his company provide it with all the journalists who had access to the “Twitter Files,” the Musk-led public-information crusade that publicized the government’s politically charged censorship campaign against those who dared to question the administration’s COVID regulatory agenda. This political posturing from the commission didn’t protect the consumers; instead, with brute, authoritarian-style force, it protected the sitting president from widespread public criticism.
Then, the FTC began attacking groups known as pharmacy benefit managers (PBMs), which stop the PhRMA-aligned drug companies that the Democrats are in league with from raising the cost of prescription drugs. (READ MORE: Congress Aims to Reduce Drug Costs, but It’s Attacking the Wrong People)
As Sen. Rand Paul has made clear, PBMs, which manage America’s health plans, aren’t bad guys like Big Pharma CEOs contend. The Big Pharma CEOs just don’t like them because they pull out every stop to get better prescription drug prices from PhRMA. President Donald Trump’s former Council of Economic Advisers chief economist found that PBMs are, in fact, really good at reining in drug costs, adding close to $200 million annually in value to consumers. But the Biden FTC doesn’t seem to care. It recently rescinded its previous advocacy of PBMs and has put them under the government’s microscope.
This move shouldn’t surprise anyone who’s paying attention. With the commission no longer bound by the consumer welfare standard, why wouldn’t it stand for one of the top Democratic lobbying interests in America — PhRMA — rather than for the vulnerable Americans whom the administration is supposed to serve?
The FTC is becoming increasingly authoritarian in its actions.
Partnering with the Department of Justice, the commission recently took a two-by-four to the U.S. government’s corporate merger guidelines, essentially stating that it will scrutinize any business that’s big or seeks to become big — even if that business should be lowering prices and benefiting consumers.
This claim is not an exaggeration. Among other things, the FTC’s new merger guidelines will automatically kill any new merger that would create businesses with greater than 30 percent market share in a given industry. They also remove the government’s burden of proving that business deals are anti-competitive and replace it instead with a “structural presumption” model, where any proposed merger that meets the 30 percent concentration threshold is automatically presumed to be harmful.
Reacting to the new FTC guidelines, economist Scott Lincicome said, “[I]f you’re a U.S. company considering a merger that might trip any of these now-raised concentration wires, just stop considering it—regardless of whether it’s actually “anticompetitive” or whether it might deliver big value to American consumers and the economy more broadly.” He’s not alone in thinking this way. Antirust lawyers and Democratic academics, such as Jason Furman and Larry Summers, agree.
These new guidelines prove that the FTC cares more about advancing the Biden administration’s radical ideological agenda than it does about upholding the law and protecting consumers’ interests. Even more concerning is how these guidelines facilitate the plans of this radical White House to fundamentally change this country’s overall composition and general governing principles.
In America, we believe in freedom. We believe in free enterprise and allowing people to be anything they want to be. We don’t punish people for their political views or for acting in ways that hurt our political donors. And we surely don’t allow tyrants to break up private businesses just because they wish to denigrate capitalism in their efforts to remake this country into something it’s not.
The time is now for Ohio Rep. Jim Jordan’s Judiciary Committee and the rest of the Republican-controlled House of Representatives to hold to account the FTC for its anti-consumer actions. The time is now for them to subpoena the FTC and to do everything they can to stop the commission from sacrificing American consumers’ interests on the altar of political expediency.