Could the DOJ and FTC Reform Regulations that Harm Competition?
When many think about monopolies and unfair business practices, they typically picture large corporations squashing smaller rivals. But there’s another significant culprit restricting competition that gets far less attention: government regulations themselves.
The Trump administration has in recent weeks taken the first steps toward reining in some of these regulations. The U.S. Justice Department (DOJ) and Federal Trade Commission (FTC) have both convened proceedings seeking public input on regulations that harm competition. The requests were so expansive that it would be easy to conclude the agencies were asking for a “wish list.”
Toward that end, the International Center for Law & Economics (ICLE) submitted detailed recommendations revealing how extensively government rules can undermine the markets they’re meant to protect.
This isn’t a new concern. Dating back to English common law and America’s founding era, anti-monopoly traditions were often focused on limiting government-granted exclusive privileges, rather than scrutinizing successful private businesses. Since at least the 1600s, monarchs have granted favored merchants exclusive rights to sell certain goods, creating artificial monopolies that harmed consumers. Today’s regulatory landscape creates similar problems through different mechanisms.