The Federal Trade Commission ("FTC") has turned the antitrust lens inward, examining and recommending removal or revision of federal regulations it deems as potential barriers to entry and innovation. In a letter to the Office of Management and Budget ("OMB") dated September 16, 2025, Chairman Andrew N. Ferguson identified more than 125 regulations that, in his view, restrict entry, entrench incumbents, or otherwise distort competition (the "Ferguson Letter"). The recommendations were issued pursuant to Executive Order 14267, which directs agencies to reduce anticompetitive regulatory barriers.
The FTC identified several categories of regulations as particularly problematic:
- Procurement Preferences: Department of Transportation rules that give preferential treatment to "socially and economically disadvantaged individuals" in contracting may unintentionally protect incumbents and limit competition.
- Bundled Education Costs: Regulations allowing colleges to include textbooks and supplies in tuition may reduce transparency and limit students' ability to seek cost-saving alternatives.
- Safety Standards with Patent Monopolies: Proposed Consumer Product Safety Commission standards for table saws mandating a patented flesh-detection technology could raise costs and exclude competitors that cannot use or license those technologies.
- Eligibility Restrictions in Land Use: U.S. Forest Service rules that restrict eligibility for ranching based on age may block younger entrants and concentrate participation among established operators.
The Ferguson Letter identifies regulations that span a broad variety of sectors, including procurement, higher education, product safety, and land allocation, suggesting that the FTC views regulatory hurdles to competition as widespread and not limited to one sector.
The FTC cannot repeal or revise these regulations directly. Any changes would require OMB and the relevant agencies to initiate rulemaking under the Administrative Procedure Act, and efforts to rollback or modify longstanding equity or safety measures would likely face legal challenges. OMB has not yet indicated how it will respond, and agencies have not announced whether they will pursue rulemakings in response to the recommendations. The timing and scope of potential regulatory change therefore remain uncertain, but the Ferguson Letter underscores an expanded use of competition analysis, with federal regulations themselves being scrutinized as potential sources of anticompetitive harm.
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