FTC launches anticompetitive regulations hunt with DOJ

Six days ago, the Federal Trade Commission and Department of Justice Antitrust Division issued a joint letter directing federal agency heads to identify regulations that reduce competition, entrepreneurship, and innovation. This initiative, announced on May 5, 2025, implements President Trump's Executive Order 14267 on Reducing Anticompetitive Regulatory Barriers signed last month.

The directive represents one of the most comprehensive attempts to identify and potentially eliminate regulations that may hamper market competition across the federal government in recent years. Federal agencies now face a June 18 deadline to submit lists of regulations that might impede market competition.

Wide-ranging review targets market barriers

According to the joint letter from FTC Chairman Andrew N. Ferguson and Assistant Attorney General Abigail Slater, federal agencies must review all regulations subject to their rulemaking authority and identify those that:

"Create or facilitate the creation of monopolies; create unnecessary barriers to entry for new market participants; limit competition or have the effect of limiting competition between competing entities; create or facilitate licensure or accreditation requirements that unduly limit competition; unnecessarily limit companies' ability to compete for agency procurements; or otherwise impose anticompetitive restraints or distortions on the operation of the free market," according to the directive.

Each agency must designate a senior political official to lead their regulatory review efforts. The agencies must not only identify potentially anticompetitive regulations but also recommend whether each regulation should be rescinded or modified. For regulations recommended for modification, agencies must specify what changes would be appropriate.

"Anticompetitive federal regulations harm ordinary Americans in many ways. They lead to higher prices, lower quality goods and services, less innovation, and fewer opportunities to earn a living," the letter states. "These types of regulations can be found across the federal government."

Multiple sectors targeted for regulatory review

The joint letter specifically highlights several sectors where the agencies believe anticompetitive regulations may be prevalent:

• Healthcare, where regulations "may have the effect of pushing low-cost insurance plans out of the market and inducing vertical consolidation that raises prices, while burdensome pharmaceutical regulations may delay the introduction of new, more affordable medicines."
• Energy sector, where "unnecessary environmental and energy regulations may prevent the exploitation of existing energy sources and the development of new projects that compete against incumbent energy providers."
• Technology industry, where "excessive regulation in technology-driven sectors... may serve the interests of big tech while discouraging investment and innovation by emerging companies."
• Food and agriculture, where eliminating regulations could potentially "help farmers, growers, and ranchers produce food that unlocks lower prices for American consumers."
• Transportation, where regulations might "increase the costs of equipment, limit the availability of flights, prevent the construction of critical infrastructure, and slow innovation."
• Government procurement, where "complex federal procurement regulations may favor large incumbent government contractors... while preventing smaller businesses from competing effectively."

Public input drives process

The regulatory review is not operating in isolation. On April 15, 2025, the FTC launched a Request for Information (RFI) seeking public input on how federal regulations might harm competition in the American economy. The RFI, which remains open until May 27, asks the public to identify specific federal regulations that create monopolies, establish unnecessary barriers to entry, limit competition, create anticompetitive licensure requirements, burden procurement processes, or otherwise impose anticompetitive restraints.

"Appropriately tailored economic regulations can play an important role in ensuring that markets function efficiently. Often, however, regulations become unnecessarily onerous," the FTC stated in its Request for Information. "Rather than serving the American people, such regulations can operate to exclude new market entrants, protect dominant incumbents, and predetermine economic winners and losers."

The RFI invites input from consumers, workers, businesses, start-ups, potential market entrants, investors, and academics. For each regulation identified, the FTC requests detailed information, including the regulation's citation, effective date, specific language causing anticompetitive effects, legal authorities applicable to the regulation, explanation of how the regulation creates anticompetitive effects, and justification for why the regulation should be eliminated or modified.

Consolidation and implementation timeline

Following the June 18 deadline for agency submissions, the FTC and DOJ will consolidate the lists of anticompetitive regulations and provide recommendations to the Director of the Office of Management and Budget (OMB). The FTC and DOJ may add regulations not originally included on agency lists if they determine such regulations fall within the anticompetitive categories outlined in the Executive Order.

Upon receiving the consolidated list, the OMB Director, through the Administrator of the Office of Information and Regulatory Affairs, will consult with the FTC Chairman, the Attorney General, the Assistant to the President for Economic Policy, and relevant agency heads. This consultation will determine whether to incorporate the proposed rescissions or modifications into the Unified Regulatory Agenda developed pursuant to a previous Executive Order focused on deregulation.

Next steps in the process

The tight timeline established in the Executive Order suggests the administration is pushing for rapid action. Following the submission of agency lists by June 18, the FTC and DOJ will have 90 days to provide their consolidated list of recommendations to the OMB Director.

For the business community, regulatory practitioners, and competition policy experts, this initiative represents a significant opportunity to address long-standing complaints about regulatory barriers. The public comment period, open until May 27, allows stakeholders to contribute directly to the identification process.

While the ultimate impact of this deregulatory effort remains to be seen, the current initiative represents one of the most structured and comprehensive attempts to systematically identify and address regulatory barriers to competition across the federal government in recent history.

Timeline

• April 9, 2025: President Trump issues Executive Order 14267 on Reducing Anticompetitive Regulatory Barriers
• April 15, 2025: FTC publishes Request for Information seeking public input on anticompetitive regulations
• May 5, 2025: FTC and DOJ issue joint letter directing federal agencies to identify anticompetitive regulations
• May 27, 2025: Deadline for public comments on the FTC's Request for Information
• June 18, 2025: Deadline for agencies to submit lists of anticompetitive regulations to the FTC and DOJ
• September 16, 2025 (est.): Deadline for FTC and DOJ to provide consolidated list to OMB Director