RECENT DEVELOPMENTS

Building Worker Power

• WILL FTC DEFEND NONCOMPETE BAN? Biden’s FTC finalized a rule to ban nearly all noncompete agreements, expected to raise worker incomes by $524 annually. But business groups almost immediately sued to block it. After becoming FTC Chair in January, Andrew Ferguson committed to tackling anti-competitive labor abuses, but so far has only requested a pause in the noncompete rule’s court challenge. He must tell the court by July 10 if the FTC will continue defending the rule. Economic Liberties, Open Markets Institute and other advocates sent a letter urging Ferguson to do so. In addition, Sens. Young (R-IN) and Murphy (D-CT) reintroduced the Workforce Mobility Act to ban most noncompetes.

Food & Ag

• FTC v. JOHN DEERE MOVES FORWARD. As recently as this month, Iowa farmers discussed with FTC Commissioner Alvaro Bedoya how lacking the “right to repair” their own equipment threatens their livelihoods. Lina Khan’s FTC sued John Deere for illegally preventing farmers from repairing their equipment or using independent mechanics, driving up costs. This week, John Deere lost their attempt to dismiss the case. It is unclear how Chair Ferguson will proceed. Though he voted against bringing the lawsuit, he has since affirmed his support for the right to repair to Rep. Gluesenkamp Perez (D-WA-03), who has introduced a bipartisan bill to establish the right to repair federally.

Airlines

• FAA MOVES ON NEWARK. Delays, cancellation, and Air Traffic Control (ATC) outages at Newark Airport have underscored the fragile state of flying in the U.S. In response, the FAA launched an RFI on limiting flights at Newark. Economic Liberties’ Chris Rocheleau urging Transportation Secretary Sean Duffy and Acting FAA Administrator Chris Rocheleau to consider the competitiveness of smaller airlines when imposing any flight restrictions at Newark. However, as Senior Fellow Bill McGee noted in MSNBC, a chronically underfunded and understaffed FAA is also driving many of the issues, yet, in February, DOGE eliminated 400 FAA jobs, including roles supporting airport operations.
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• DOJ AND BOEING CUT A DEAL. In 2021, Boeing entered into a deferred prosecution agreement for deceiving the FAA during the certification process of the 737 Max, resulting in two fatal crashes in 2018 and 2019. In 2024, DOJ accused Boeing of violating the agreement, and Boeing and the DOJ negotiated a guilty plea, but a judge rejected the proposal that victims’ families called a “sweetheart deal,” forcing the case to trial. Instead, AG Pam Bondi allowed Boeing to settle for a $1B penalty and dismissed the case. The recent, fatal crash of a Boeing 787 Dreamliner in India is renewing concerns yet again about the safety of the company’s planes.

Reining in Big Tech 

• META TRIAL CONCLUDES. The six-week trial for FTC’s monopolization case against Meta has come to a close. During trial, Meta CEO Mark Zuckerberg admitted to buying Instagram to “neutralize” social media competition. In addition, the FTC highlighted how Meta’s under-investment in Instagram resulted in rampant and unaddressed child exploitation. The judge rejected Meta’s attempt to dismiss the case before even beginning their defense, and instead will rule on whether Meta illegally monopolized the social market, a first step in potentially forcing Meta to divest WhatsApp and Instagram.
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• BIG BEAUTIFUL BIG TECH GIVEAWAY. The House reconciliation bill would impose a ten-year moratorium on any state and local laws governing AI, including bills under development that would check Big Tech. The AI ban could also limit state regulation of algorithmic rental price-fixing schemes, leading Sen. Warren to investigate whether RealPage was behind the moratorium. 40 bipartisan attorneys general and 100 organizations are demanding Congress drop the provision, and Republican Sens. Hawley (R-MO), Blackburn (R-TN), and Rep. Greene (R-GA-14) also oppose the ban. The provision likely won’t survive the “Byrd Rule” that requires reconciliation provisions to be budget-related, but Sen. Cruz (D-TX) is attempting a workaround for the Senate bill, denying states’ broadband funding if they impose AI regulations.
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• SEARCHING FOR A GOOGLE REMEDY. A judge found Google maintained an illegal monopoly to control over 90% of the internet search market, and Google is staffing up with a former Obama official to appeal the ruling. In the meantime, the judge heard from DOJ and Google about how best to remedy the search market. Among other structural remedies, DOJ wants the court to force Google to share certain data with competitors. The FTC submitted an amicus brief confirming such a measure wouldn’t present any privacy concerns. Google wants limited behavioral remedies, like a temporary ban on default search provider contracts. The judge also seemed focused on implications for AI.  A ruling should come before Labor Day. Keep up to date with Big Tech on Trial.

Finance

• NOT SO GENIUS ACT. Stablecoins are a cryptocurrency tied to the value of another asset, like the U.S. dollar, versus the coin’s supply like Bitcoin, ostensibly to facilitate trading. Last week, the Senate Banking Committee advanced the GENIUS Act, which would set parameters on which entities get to issue stablecoins, including nonbanks like Big Tech. It now awaits a floor vote, bypassing attempts to add the Credit Card Competition Act as an amendment.  Economic Liberties and Better Markets‘ fact sheet details how this move would entrench Big Tech’s power and threaten consumer privacy and financial stability.
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• PRIVATIZING FANNIE AND FREDDIE. Congress created Fannie Mae in 1938 and Freddie Mac in 1970 (Fannie & Freddie.) They buy U.S. mortgages and sell them as securities to give lenders liquidity to make more loans, in theory expanding access to home ownership.  Starting in the late 1990s, Fannie & Freddie began buying and selling riskier loans and securities, eventually resulting in massive losses during the financial crisis. In response, the government bailed them out for $200B and created the Federal Housing Finance Agency to move Freddie and Fannie into a conservatorship and regulate their operations. Now, President Trump wants to end the 17-year conservatorship and privatize Fannie & Freddie, which would benefit hedge funds. Economic Liberties’ Senior Advisor Bharat Ramamurti has identified 7 questions to consider, including how privatization would impact borrowing rates, access to credit, and smaller lenders.
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• BANK MERGER GREENLIGHT. Though President Trump has voiced support for capping credit card interest rates, so far his administration has taken steps to facilitate banking consolidation, which will likely increase rates. The OCC and the Fed greenlit Capital One’s $35.3 billion acquisition of Discover, consolidating the U.S.’s two largest nonprime lenders. Before the deal closed, Sen. Warren (D-MA) was urging DOJ to use its antitrust authority to block the merger, but AAG Slater hasn’t acted.  On the Hill, House and Senate Republicans also issued a CRA to block a Biden OCC rule that would have eliminated expedited bank merger approval.

Improving Health Care

• FTC ORANGE BOOK CHALLENGES CONTINUE. Drug companies often make slight changes to device patents for administering drugs to improperly extend their patents, blocking competitors from entering the market, keeping prices high. The FTC announced new challenges of over 200 such improper patent listings, continuing the previous administration’s policy, which led four major inhaler manufacturers to drop their prices to $35. Check out Economic Liberties’ report, “The Costs of Pharma Cheating” for more on how Big Pharma patent abuses keep drug prices high.
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• OREGON TAKES ON CORPORATE MEDICINE. Corporate practice of medicine laws (CPOM) protect a physician’s ability to treat patients without interference from corporate interests. Not all states have such laws on the books and legal loopholes in those that do have resulted in corporate health systems employing four of five U.S. physicians.  Oregon is fighting back. The governor signed a first of its kind bill to close a loophole in their CPOM that has allowed private equity firms and corporations to control medical practices. While no federal CPOM ban exists, the Economic Liberties 119^th Policy Agenda suggests pursuing such legislation.

Rethink Trade

• TARIFFS HIT THE COURTS. Some of President Trump’s tariffs are facing legal headwinds. On May 28, the U.S. Court of International Trade permanently suspended all of the administration’s new tariffs on China, Mexico and Canada purportedly to stem the flow of fentanyl, as well as the “liberation day” tariffs imposed on most countries. An appeals court, however, has lifted the suspension through the summer until they issue a final decision. Two toy companies successfully challenged the tariffs, but that decision is also stayed pending appeal. Ultimately, the Supreme Court will decide the question underlying both cases: Does the International Emergency Economic Powers Act allow a president to impose expansive tariffs without congressional approval? In the meantime, bicameral Democrats are demanding the FTC investigate any tariff-related price-gouging.

Admin

• CFPB ATTACKS CONTINUE. Last month, CFPB Acting Director Russ Vought withdrew much of the Bureau’s regulatory guidance, interpretive rules, and policy statements. Trump’s CFPB had already dropped numerous enforcement actions and joined an effort to block the agency’s own rule to ban medical debt. And though the administration is attempting to lay off 90% of its staff, a judge blocked the firings and the administration’s appeal of the decision awaits a ruling. Rep. Maxine Waters (D-CA-43) and 200 current and former congressional members filed an amicus brief in the CFPB employees’ union case, challenging their dismissals. Meanwhile, President Trump changed course on appointing a permanent agency director, rescinding Jonathan McKernan’s nomination. Combined with zeroing out the agency’s budget in the House Reconciliation Bill, President Trump is advancing a longstanding Republican Party goal of knee capping the agency.

Blocking Mergers

• LET’S MAKE A DEI DEAL? Verizon is the nation’s largest telecom company, and the FCC just approved its $20B acquisition of Frontier, the nation’s largest pure-play fiber internet provider. To get the deal done, Verizon pledged to scale back its DEI efforts. Verizon is one of the nation’s most expensive wireless companies and has been growing its internet market footprint.  After the deal, Frontier customers are expected to pay $10-$30 more monthly, and the deal will expand Verizon’s broadband footprint in 25 states. The deal is expected to close early in 2026. Separately, Charter (operating as Spectrum) and Cox, two of the nation’s largest cable companies, agreed to a $34.5B merger, but the deal awaits regulatory approval.
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•  FTC BACKS CHIP SOFTWARE MERGER. In January 2024, Synopsys sought to acquire Ansys for $35B. Ansys provides software for the aerospace, defense, auto, and energy markets, and Synopsys is the world’s largest chip designer, including for companies like Intel and Nvidia. The FTC just approved the deal, requiring an assets divesture to their competitor, Keysight. The agency claimed the divestiture would keep the software market competitive and consumer prices low, without specifying how. Other parts of the administration aren’t treating Synopsys as favorably. President Trump is forcing the software firm to stop sales to China that account for 10% of its revenue to undermine the Chinese semiconductor industry.
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• WILL LIVE NATION GET A PASS? Last year, DOJ and 30 bipartisan AGs sued Live Nation-Ticketmaster (LNE) for monopolizing the live entertainment industry. The new administration hasn’t commented on the case, and instead seems focused on ticketing. Though the DOJ hosted a roundtable on unfair practices in live events and ticketing, the FTC and DOJ are seeking comments only on anticompetitive ticketing until June 7. Live Nation has also added Richard Grenell to their board, a Trump appointee to the Kennedy Center for Performing Arts, potentially in a move to try to get the DOJ to drop the case. The trial is set to begin March 2026.

Lowering Prices

• ROBINSON-PATMAN REVIVAL IN JEOPARDY. Independent grocery store closures skyrocketed once the FTC quit enforcing a 100-year-old antitrust law—the Robinson-Patman Act (RPA)—which prevents producers and wholesalers from giving large businesses unfair pricing advantages over small businesses. Khan’s FTC brought the first two RPA lawsuits in over 40 years against Southern Glazer, an alcohol distributor, and PepsiCo. FTC Chair Ferguson just dropped the lawsuit against PepsiCo, claiming it was rushed. A judge rejected Southern Glazer’s attempt to dismiss that case, but both Chair Ferguson and Commissioner Holyoak voted against filing the lawsuit and could drop it. Meanwhile, Sen. Murphy (D-CT) hosted a discussion with a food retailer in South Dakota attesting to ongoing price discrimination against local retailers that forces them out of business.
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• JUNK FEE BAN IN PLAY. Consumers face billions in junk fees across the economy, from banking, housing, live-events, and more. Former FTC Chair Lina Khan finalized a rule banning the fees in the live-event ticketing and short-term lodging markets, which took effect May 12. Chair Ferguson’s FTC issued guidance to aid compliance, signaling support of the rule, and has specifically called for StubHub’s compliance ahead of the 2025 NFL season.

ICYMI

• Economic Liberties led a letter, including bipartisan individuals from Digital Progress Institute and Foundation of American Innovation, urging Appropriations leadership to provide robust funding for FTC and DOJ.
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• Basel Musharbash breaks down how consolidation is driving up home prices in Texas.
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• Sen. Ossoff (D-GA) launched an investigation into the impact of large, out-of-state companies buying up housing prices in Georgia and driving up prices.
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• Rep. Ryan (D-NY-18) urged DOJ to prioritize its lawsuit against UnitedHealth Group following his community inquiry into the harms of healthcare consolidation.
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• Economic Liberties Senior Policy Analyst for Healthcare Emma Freer covers how UnitedHealth Group’s Medicare Advantage coverage abuses patients and overcharges taxpayers.
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• Sens. Warren (D-MA) and Schmitt (R-MO) reintroduced the Protecting AI and Cloud Competition in Defense Act to create a competitive award process for DoD AI and cloud computing contracts.
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• International Association of Fire Fighters and Economic Liberties urged DOJ and FTC to investigate private equity roll ups of the emergency vehicle industry.
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• Sen. Booker called out PBMs’ “corporate violence” costing American lives.
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• FTC Commissioners Bedoya and Slaughter asked a judge to reinstate their roles after they were illegally fired. The case continues, but Commissioner Bedoya resigned from the FTC to abide by ethics rules.
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• Check out Economic Liberties’ comment letter on the FTC’s RFI on Big Tech censorship.
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• Economic Liberties sent a letter urging the California Bar to investigate Google Chief Counsel Kent Walker for his role in systematically hiding and destroying evidence related to ongoing tech trials.
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• FTC lost its appeal of a court decision that allowed Microsoft to merge with Activision-Blizzard for $68.7B.
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• After the DOJ blocked American and JetBlue’s “Northeast Alliance,” JetBlue announced a “Blue Sky” partnership with United to sell seats on each other’s flights, which is still subject to government review.
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• Colorado Governor Polis vetoed a bill to ban rent-setting algorithms.
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• Biden era rule making subscription cancellation easier was set to take effect May 14, but FTC extended its effective date to July 14.