Morgan’s Monopoly Digest – May 2025

May 5, 2025 Anti-Monopoly Policies & EnforcementCompetition Policy Digest

RECENT DEVELOPMENTS

Reining in Big Tech

  • ZUCKERBERG’S LAST STAND? The FTC’s trial against Meta—the parent company of Facebook, Instagram, and WhatsApp—has begun, despite CEO Mark Zuckerberg’s attempts to get the case dropped. So far, the FTC has called Zuckerberg and Instagram co-founder, Kevin Systrom, to the stand to make its case that Meta illegally monopolized the social media market. FTC Chair Ferguson affirmed support for the case which could result in a breakup of the company.  Keep up to date with Big Tech on Trial, or attend trial at the D.C. district court Mondays through Thursdays from 9:30 a.m. to 5:00 p.m.
  • GOOGLE’S MULTIPLE MONOPOLIES. Last year, Google was found guilty of monopolizing the internet search market, a case started in the first Trump administration. The remedies phase of the case kicked off last week, with AAG Slater speaking outside the courtroom in support of DOJ’s propo sed structural remedies, like forcing a Chrome divestiture.  Separately, DOJ and bipartisan state AGs just won its 2023 case against Google for monopolizing the online advertising technology (adtech) market. The parties are scheduled to submit proposed remedies today. Sen. Mike Lee’s (R-UT) also hosted a hearing on remedies for big tech, including his AMERICA Act, which would structurally separate the adtech market. Witnesses (including yours truly!) encouraged Congress to impose remedies legislatively, despite momentum in the courts.
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  • CRIMINAL APP STORE UNLOCKED. For years, Apple skimmed almost 30% off every payment apps on the app store charged their customers. Epic Games, creator of Fortnite, successfully sued over this practice, forcing Apple to allow developers to use alternative payment platforms. Last week, a judge forced Apple to “immediately” comply and recommended criminal prosecution for ignoring the order. In response, ProtonSpotify, and Patreon submitted updates to their apps that will allow payments on non-Apple platforms, promising lower prices for customers. Apple has appealed the judge’s orders.
  • FCC EXAMINES MEDIA CONSOLIDATION. Currently, the FCC limits how many local TV and radio stations a company can own, but the broadcast industry is pushing to do away with the rules to further consolidate, supposedly to compete with Big Tech. The National Association of Broadcast Employees and Technicians – Communications Workers of America (CWA) submitted a comment to the FCC, opposing these efforts, arguing that consolidating the telecommunications sector does not solve the Big Tech problem but does “harm the ability of Americans to access trusted local news.” Economic Liberties also submitted a separate comment opposing these changes and recommending the FCC instead try to increase competition in the market by, for example, issuing a rule to eliminate Big Tech’s Section 230 liability shield.

Personnel

  • FTC COMMISSIONERS IN LIMBO. President Trump illegally attempted to remove Democratic FTC Commissioners Alvaro Bedoya and Rebecca Kelly Slaughter, though legally they can be removed only for cause and days before Chair Ferguson had emphasized the importance of a bipartisan commission. Bedoya and Slaughter have sued, and Sen. Durbin (D-IL) and Sen. Booker (D-NJ) led bicameral Democrats in filing an amicus in support of the lawsuit. Rep. Garcia (D-IL-04), Rep. Nadler (D-NY-12) and and 53 Democratic members also wrote to Trump and Ferguson opposing the firings and how the move undermines the FTC’s addressing the nation’s affordability crisis. The dismissals could have jeopardized the FTC’s PBM case given two few sitting commissioners, but Ferguson withdrew his recusal, and Mark Meador was confirmed as the third Republican commissioner.
  • JIM JORDAN TAKES AN L. The One Agency Act would move most of the FTC’s antitrust authority to the Department of Justice. Last weekHouse Judiciary Chair Jim Jordan (R-OH-04) tried to move the bill forward via reconciliation, potentially eliminating the FTC’s Section 5 authority to police “unfair methods of competition” and endangering lawsuits against big tech firms. Senate Republicans warned the measure wasn’t budgetary and likely wouldn’t pass, and Steve Bannon called Jordan out as being in big tech ‘s pocket by advancing the measure. During markup, Jordan unexpectedly struck the language, though he pledged to move the One Agency Act forward as a standalone bill. Check out Economic Liberties’ fact sheet on more about the bill’s implications.

Airlines

  • AIR TRAVEL CHAOS. Recent airline crashes and staff walkouts in Newark, NJ over outdated equipment are just the latest evidence of the Federal Aviation Administration’s challenges overseeing the U.S. air traffic control system (ATC). Indeed, a March 2025 GAO study recommending urgent technological updates to ATC., and the House Aviation Transportation Subcommittee hosted a hearing also calling for technological upgrades and addressing long-term staffing shortages. The administration’s DOGE team, however, fired 320 FAA staff, though Secretary Duffy claimed no ATC staff were dismissed. Read Economic Liberties Senior Fellow for Aviation Bill McGee’s article on why staffing and technology upgrades are critical safety reforms.

Improving Health Care

  • THE MEDICARE ADVANTAGE? More than half of Medicare beneficiaries enroll in Medicare Advantage (MA), where private insurers manage care. The number has doubled since 2013, and MA typically charges 122% more per payment than traditional Medicare. The DOJ is now suing three of the largest MA insurers —Aetna, Elevance, and Humana— for paying illegal kickbacks to insurance brokers to drive up MA enrollments. DOJ also alleges Aetna and Humana tried to avoid enrolling beneficiaries with disabilities who are also eligible for Medicare but less profitable than seniors. Despite this conduct, the Centers for Medicare and Medicaid Services recently announced a 5% increase in payments to MA providers in 2026. Doctors, including Rep. Murphy (R-NC-03) are fuming. Read more from Economic Liberties Seni or Fellow Hayden Rooke-Ley about how MA and vertical consolidation increase costs.
  • UNITED/OPTUM PUSHBACK. United Healthcare is the largest U.S. healthcare company. Their subsidiary, Optum, owns physician practices, pharmacy benefit managers, and during the Change healthcare hack, made loans to physicians that they now want repaid. Policymakers are starting to ask questions. For example, Rep. Pat Ryan (D-NY-18) launched an inquiry into how Optum’s acquisition of physician practices in his district is impacting quality of care. He received thousands of responses and has released a report highlighting the findings, including decreased quality of care and inaccurate billing.
  • FIRST PBM BREAK UP. Though Congress failed to pass PBM reform last year, states aren’t slowing down. Arkansas passed a first of its kind law that would ban PBMs from owning pharmacies, similar to Sen. Warren (D-MA) and Sen. Hawley’s (R-MO) Patient Before Monopolies Act from last Congress. And 39 bipartisan state AGs wrote to Congressional leadership urging them to ban PBMs from owning pharmacies.
  • BIG WHOLESALER GIVEAWAY. With the support of private equity, dominant drug wholesalers like McKesson have accelerated their acquisition of specialty medical practices. Currently, practices cannot distribute drugs from these wholesalers, given the legal ban on referring Medicare/Medicaid patients to services where the physician has a conflict of interest. Rep. Diana Harshbarger (R-TN-01)’s Seniors Access to Critical Medications Act would amend the Stark law to allow these integrated practices to mail drugs to seniors or have a caregiver pick up medication, ostensibly to increase patients’ access to medications. Patients, however, can already access these options through an independent pharmacy. The bill would instead further entrench wholesalers’ market power at local pharmacies’ expense. The House & Energy committee passed the bill 38-7, with Democratic members from Rep. Jake Auchincloss to AOC opposing.

Promoting National Security

  • ARMY’S RIGHT TO REPAIR. In 2023, DoD spent $609.2 billion on defense contracts, or $1,819 per American. Contractors preventing the military from repairing equipment directly contribute to delays and high costs. During his confirmation hearing, Secretary of the Army Driscoll agreed with Sen. Warren (D-MA,) a longtime right-to-repair advocate, on the need to implement right-to-repair provisions in future defense contracts, and now he has a direct order from Department of Defense Secretary Hegseth. DoD also ordered the Army to review procurement contracts. Read more from Economic Liberties on other ways to tackle defense contractor corporate power.

Blocking Mergers

  • CAP ONE/DISCOVER APPROVED. After DOJ greenlit Capital One’s $35 billion acquisition of Discover –despite both companies being primary lenders to nonprime borrowers– the Fed and OCC have now officially approved the deal. The merger will create the largest credit card issuer in the U.S. and the eighth-largest bank, likely limiting less affluent borrowers’ access to credit and leading to higher interest rates. The deal will also give Capital One control of Discover’s payment network, which the Federal Reserve and FDIC recently fined $250 million for excessive merchant fees. The merger is expected to close on May 18, but advocates are still pushing for state AGs to block the deal. Sen. Warren (D-MA) also asked the Fed to reconsider its approval, and Rep. Waters (D-CA-43) pledged oversight of the banks. Separately, the Trump organization has sued CapOne for closing accounts in June 2021.
  • MORTGAGE MONOPOLY? After the financial crisis, banks pared back their mortgage holdings, creating an opening for more nonbanks to start originating. Rocket Companies is one of the nonbanks that emerged and has grown into America’s second largest mortgage originator, a mortgage insurer, and owner of an online mortg age search platform. Earlier this year, Rocket agreed to buy Redfin, the most visited real estate brokerage and listing platform in the U.S., for $1.75 billion. Now, Rocket is trying to buy Mr. Cooper, America’s largest mortgage servicer, for $9.4 billion. The combined company would hold one in six U.S. mortgages. Previously, the CFPB sued Rocket for paying illegal kickbacks to brokers, but in February, Acting Director Russ Vought announced the bureau was dropping the lawsuit.

Lowering Prices

  • CONSUMER PROTECTION CRA SPREE. majority of Americans support the government’s role in consumer protection, yet, Congressional Republicans just passed two CRAs rolling back CFPB rulemakings. GOP members blocked a rule limiting overdraft fees—estimated to save consumers $5B annually—and the CFPB’s digital payments rule, which extended oversight to peer-to-peer payment platforms, a rule Sen. Josh Hawley supported, to protect Americans from debanking. President Trump has not yet signed these resolutions into law. Separately, Punchbowl News reported that Sen. Mike Lee (R-UT) and Rep. Laurel Lee (R-FL-15) may introduce a CRA targeting the FTC’s “Click to Cancel” rule, which simplifies subscription cancellations and is supported by 83% of Americans across party lines.
  • BREAK UP TICKETMASTER? Live-Nation/Ticketmaster continues to report record high revenue while infuriating fans with high prices. The Break Up Ticketmaster coalition sent a letter urging Trump’s DOJ to continue the Biden Administration’s lawsuit against Live Nation-Ticketmaster and pursue a remedy to breakup the live events giant. Sen. Amy Klobuchar and Sen. Mike Lee also sent a letter to AAG Slater to continue investigating the live events giant’s anticompetitive conduct. The DOJ didn’t respond, but has moved along with the 40 states to separate the case into a jury trial to determine if Live Nation is guilty and a judge-run bench trial to determine remedies. Read more about The Case Against Live Nation-Ticketmaster here and watch the WSJ’s latest video on Live Nation’s monopoly.

ICYMI

  • A handful of House members launched the Monopoly Busters Caucus to fight corporate power, including Reps. MacDonald Rivet (D-MI-08) and Craig (D-MN-02).
  • Rep. Josh Riley (D-NY-19) started an inquiry into rising utility costs.
  • The FTC’s Robinson-Patman case against Southern Glazer’s Wine and Spirits survived a motion to dismiss. The FTC’s second RPA case against Pepsi was just filed in January 2025.
  • AAG Slater gave her first Antitrust Address at the University of Notre Dame, check out her speech here. And newly confirmed FTC Commissioner Meador delivered remarks on Antitrust Policy for the Conservative.
  • FTC sued Uber for deceptively enrolling customers in their Uber One subscription service and making it difficult to cancel.
  • Economic Liberties Senior fellow Hannah Garden-Monheit’s op-ed details how an anti-monopoly policy supports a pro-growth agenda.
  • Boeing is seeking to withdraw its agreement with the DOJ after it pled guilty to misrepresenting evidence surrounding the investigation of two fatal 737 MAX crashes.
  • FTC Chair Ferguson is seeking public comment to set aside former Chair Khan’s consent order barring Hess CEO from Chevron’s Board, after it was accused of an international oil price fixing scheme.
  • In response to the EO on deregulation, FTC launched a public inquiry into how federal regulations can create anticompetitive barriers. DOJ launched a task force on elimination of anticompetitive state laws. FTC comments are due May 27.
  • Sen. Hawley (R-MO) introduced the bipartisan Faster Labor Contracts Act to speed up first contracts after workers vote to unionize.