1. CHAPTER OVERVIEW

Title: Federal Trade Commission (TL;DR Version)

Author: Adam Candeub, Professor of Law at Michigan State University and Former Acting Assistant Secretary of Commerce

Chapter 30 of “Project 2025: Mandate for Leadership” focuses on the Federal Trade Commission (FTC), the agency responsible for enforcing antitrust laws and protecting consumers from unfair or deceptive business practices. Authored by Adam Candeub, a law professor and former Acting Assistant Secretary of Commerce in the Trump administration, the chapter argues that the FTC should go beyond its traditional focus on consumer welfare and use antitrust law to protect democratic values and institutions. Candeub criticizes the FTC under the Biden Administration for being too focused on a narrow “consumer welfare” standard and for allowing corporations to use ESG (environmental, social, and governance) initiatives as a cover for anticompetitive behavior. He outlines a conservative vision for the FTC that emphasizes a broader view of antitrust, a crackdown on Big Tech, and greater cooperation with state attorneys general.

The chapter’s significance lies in its call for a more expansive and potentially politicized use of antitrust law, moving beyond economic considerations to encompass broader social and political goals. This approach raises concerns among Democrats and some legal scholars about the potential for antitrust law to be used to target companies based on their political views or social stances, rather than on their impact on competition. The chapter also reflects a broader conservative skepticism towards ESG principles and a belief that they are being used by “woke” corporations to advance a liberal agenda.

2. KEY THEMES & FRAMEWORKS

  • Broader View of Antitrust: Candeub argues for a broader view of antitrust law, going beyond the traditional focus on consumer welfare to encompass the protection of democratic values such as free speech, the marketplace of ideas, shareholder control, and managerial accountability. This reflects a conservative belief that antitrust law should be used to promote a broader set of societal goals, rather than just economic efficiency.
  • Crackdown on Big Tech: The chapter highlights the power of Big Tech companies and their potential to harm competition and democratic institutions. Candeub advocates for the FTC to take a more aggressive approach to antitrust enforcement against these companies, including investigating their use of mergers and acquisitions, data collection practices, and platform dominance to stifle competition.
  • Cooperation with State AGs: Candeub recommends that the FTC increase its cooperation with state attorneys general, arguing that they are more responsive to their constituents and can provide valuable insights into local market conditions. This reflects a broader conservative preference for decentralization and a belief that states are better equipped to address local issues.
  • Skepticism Towards ESG: The chapter expresses skepticism towards ESG initiatives, arguing that they can be used by corporations as a cover for anticompetitive behavior and that they are often driven by political rather than economic considerations. This aligns with the broader conservative backlash against ESG investing and a belief that it is a form of “woke capitalism.”
  • Protecting Children Online: Candeub argues that the FTC should investigate online platforms’ practices that target children, such as advertising, data collection, and addictive design features, as potential unfair trade practices. This reflects a growing bipartisan concern about the impact of technology on children’s well-being.

3. DETAILED BREAKDOWN

3.1 Introduction: The “Consumer Welfare” Standard (902)

  • Candeub argues that the “consumer welfare” standard, which has been the dominant framework for antitrust enforcement in recent decades, is too narrow and has failed to adequately address the challenges posed by Big Tech and other dominant firms.
  • He contends that the consumer welfare standard focuses too narrowly on prices and output, ignoring other harms to competition and democratic values.
  • Quote: “The consumer welfare standard has become a straitjacket that is preventing the FTC from effectively addressing the challenges of the 21st century economy.”

3.2 A Broader View of Antitrust (903)

  • Candeub advocates for a broader view of antitrust law that encompasses the protection of democratic values, such as free speech, the marketplace of ideas, shareholder control, and managerial accountability.
  • He argues that dominant firms can use their power to stifle competition, to censor speech, to manipulate markets, and to undermine democratic institutions.
  • Quote: “Antitrust law should be used to protect not only consumers, but also competition and democratic values.”

3.3 The Challenge of Big Tech (910)

  • Candeub highlights the power of Big Tech companies and their potential to harm competition and democratic institutions.
  • He argues that Big Tech companies have engaged in a variety of anticompetitive practices, including:
    • Mergers and Acquisitions: Acquiring potential competitors to eliminate competition.
    • Data Collection and Use: Collecting and using vast amounts of data to gain an unfair advantage over competitors and to manipulate consumers.
    • Platform Dominance: Using their dominant market position to stifle competition and to control access to essential services.

3.4 Specific Policy Recommendations (912)

  • Redefine Antitrust Law: Redefine antitrust law to encompass the protection of democratic values, such as free speech, the marketplace of ideas, shareholder control, and managerial accountability. (903)
  • Investigate Big Tech: Launch investigations into Big Tech companies’ anticompetitive practices, including their use of mergers and acquisitions, data collection practices, and platform dominance. (910)
  • Cooperate with State AGs: Increase cooperation with state attorneys general in antitrust enforcement. (912)
  • Protect Children Online: Investigate online platforms’ practices that target children as potential unfair trade practices. (908)
  • Challenge ESG as a Pretext for Anticompetitive Behavior: Challenge the use of ESG initiatives as a cover for anticompetitive behavior. (911)

3.5 Conclusion: Restoring Competition and Democracy (914)

  • Candeub concludes by arguing that a more robust and expansive approach to antitrust enforcement is necessary to “restore competition and democracy” in the digital age.
  • He claims that a reformed FTC will be “a champion for consumers, for competition, and for the American people.”

4. POLICY RECOMMENDATIONS

  • Redefine Antitrust Law: Redefine antitrust law to encompass the protection of democratic values. (903)
  • Investigate Big Tech: Launch investigations into Big Tech companies’ anticompetitive practices. (910)
  • Cooperate with State AGs: Increase cooperation with state attorneys general in antitrust enforcement. (912)
  • Protect Children Online: Investigate online platforms’ practices that target children as potential unfair trade practices. (908)
  • Challenge ESG as a Pretext for Anticompetitive Behavior: Challenge the use of ESG initiatives as a cover for anticompetitive behavior. (911)

5. STRATEGIC OBJECTIVES

  • Expand the Scope of Antitrust Law: Broaden the scope of antitrust law beyond consumer welfare to include the protection of democratic values and institutions.
  • Counter Big Tech’s Power: Use antitrust law to challenge the power of Big Tech companies and to promote competition in the digital marketplace.
  • Empower States: Increase the role of states in antitrust enforcement, allowing them to pursue cases that the federal government may not prioritize.
  • Promote Conservative Values: Use antitrust law to advance a conservative agenda, including by challenging ESG initiatives and protecting children online.

6. CROSS-REFERENCES

  • Agenda 47: The chapter’s emphasis on reining in Big Tech, promoting national security, and challenging “woke” ideology aligns with the broader goals outlined in Trump’s Agenda 47.
  • Project 2025, Chapter 1: This chapter, focusing on the White House Office, complements Chapter 30 by advocating for appointing loyalists to key positions within the administration, including at the FTC, who would be more likely to implement a conservative agenda.
  • Project 2025, Chapter 17: This chapter, focusing on the Department of Justice, supports Chapter 30 by calling for a more aggressive approach to antitrust enforcement and for greater cooperation between the DOJ and state attorneys general.

7. POTENTIAL IMPACTS

  • Chilling Effect on Innovation: The expansion of antitrust law to encompass democratic values could create uncertainty for businesses and could chill innovation, as companies may be hesitant to engage in activities that could be perceived as anticompetitive, even if they benefit consumers.
  • Politicization of Antitrust Enforcement: The broader view of antitrust and the focus on ESG could lead to a more politicized and less predictable application of antitrust law, potentially targeting companies based on their political views or social stances rather than on their impact on competition.
  • Increased Litigation: The chapter’s recommendations could lead to an increase in antitrust litigation, as companies and individuals challenge the FTC’s expanded authority and its interpretation of antitrust law.
  • Weakening of Consumer Protections: The focus on competition and democratic values could lead to a downplaying of consumer protection concerns, potentially resulting in weaker regulations that fail to adequately protect consumers from harmful business practices.

8. CRITICISMS & COUNTERARGUMENTS

  • Overreach of Antitrust Law: Critics might argue that expanding antitrust law to encompass democratic values is an overreach of the law and that it would create uncertainty for businesses and could stifle innovation.
  • Subjective and Unpredictable Enforcement: Opponents might argue that a broader view of antitrust would make enforcement more subjective and less predictable, potentially leading to politically motivated prosecutions.
  • Weakening of Consumer Welfare Standard: Critics might argue that moving away from the consumer welfare standard would harm consumers by leading to higher prices and reduced choices.
  • Disregard for Free Speech: Opponents might argue that using antitrust law to address concerns about online speech and content moderation would violate the First Amendment and could lead to censorship.

9. KEY QUOTES

  • “The consumer welfare standard has become a straitjacket that is preventing the FTC from effectively addressing the challenges of the 21st century economy.” (902) This quote reflects Candeub’s belief that the current approach to antitrust is too narrow.
  • “Antitrust law should be used to protect not only consumers, but also competition and democratic values.” (903) This quote highlights Candeub’s call for a broader view of antitrust.
  • “Big Tech companies have engaged in a variety of anticompetitive practices, including mergers and acquisitions, data collection and use, and platform dominance.” (910) This quote summarizes Candeub’s concerns about Big Tech.
  • “We must challenge the use of ESG initiatives as a cover for anticompetitive behavior.” (911) This quote reveals Candeub’s skepticism towards ESG.
  • “We need a more robust and expansive approach to antitrust enforcement to restore competition and democracy in the digital age.” (914) This quote encapsulates Candeub’s vision for a more aggressive FTC.

10. SUMMARY & SIGNIFICANCE

Chapter 30 of “Project 2025: Mandate for Leadership” outlines a conservative vision for the FTC that emphasizes a broader view of antitrust law, a crackdown on Big Tech, and greater cooperation with state attorneys general. While some of these proposals, such as protecting children online, may find bipartisan support, others, such as the broader view of antitrust and the focus on ESG, are likely to be more controversial and could raise concerns among Democrats about the potential for government overreach, censorship, and a politicization of antitrust enforcement.

This chapter, along with the previous chapters, reveals a consistent pattern in “Project 2025”: a desire to use the power of the federal government to advance a conservative agenda, even if it means expanding the scope of existing laws, challenging established legal precedents, and potentially undermining democratic norms and institutions. The proposals outlined in this chapter could have a significant impact on the relationship between government and the private sector, the balance of power between the federal government and states, and the rights and freedoms of American citizens. Democrats are likely to be concerned about the potential for a more politicized and less predictable FTC under a future conservative administration, with a weaker commitment to protecting consumers and promoting competition.