Odd Lots Podcast Summary: FTC Chief Andrew Ferguson on the Trump Vision for Antitrust

Podcast Information:

• Title: Odd Lots
• Host/Author: Bloomberg
• Description: Bloomberg's Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets, and economics. Join the conversation every Monday and Thursday.
• Episode: FTC Chief Andrew Ferguson on the Trump Vision for Antitrust
• Release Date: March 17, 2025

Introduction to the Episode and Guest

In this special episode of the Odd Lots podcast, hosts Joe Weisenthal and Tracy Alloway engage in an in-depth conversation with Andrew Ferguson, the newly appointed Chair of the Federal Trade Commission (FTC) under the Trump administration. Recorded live in Washington, D.C., this episode delves into Ferguson’s vision for antitrust enforcement, his interpretation of the consumer welfare standard, and the implications for big tech companies.

FTC’s Commitment to Antitrust Enforcement Under the Trump Administration

Andrew Ferguson outlines his unwavering commitment to combating monopolies and protecting American consumers from the threats posed by Big Tech. Emphasizing resource availability, Ferguson asserts:

“I will throw every resource the agency has at prosecuting cases against Big Tech that we've got going so unequivocally.” [06:03]

Ferguson addresses recent court developments, clarifying that despite contrary statements from legal teams, the FTC remains resolute in its enforcement capabilities:

“We are ready to prosecute this case on whatever timeline the court wants for us.” [06:41]

He further emphasizes the administration’s focus on efficiency and maximizing taxpayer returns without expanding government size unnecessarily:

“Government should not be bigger than is necessary to deliver the services that Americans need...” [07:19]

Redefining the Consumer Welfare Standard in Antitrust

A significant portion of the discussion centers on the consumer welfare standard—the cornerstone of modern antitrust policy. Ferguson provides a historical overview, tracing antitrust laws back to the Sherman Act of 1890 and highlighting their foundational focus on competition and consumer protection.

He critiques the narrow interpretation of consumer welfare that emphasizes short-term price and output effects, arguing for a broader understanding that includes:

• Innovation and Product Quality: Ensuring markets foster continuous improvement and high standards.
• Labor Protection: Recognizing the rights and welfare of workers within competitive marketplaces.

Ferguson references Robert Bork’s influential work, “The Antitrust Paradox,” which advocated for a consumer welfare-focused antitrust approach, while also addressing the limitations imposed by ideological stances that prioritize market self-correction over regulatory intervention.

“The consumer welfare standard encompasses injuries to participants in marketplaces... It includes consumers, obviously. It also includes laborers.” [24:14]

Maintaining Merger Guidelines for Stability and Predictability

Despite expectations of significant shifts, Ferguson announced the FTC’s decision to retain the merger guidelines established under the Biden administration. He argues that stability is crucial for both enforcement agencies and the business community. Rewriting guidelines with every administration would lead to:

• Resource Drain: Agencies would spend excessive time drafting new guidelines instead of enforcing laws.
• Market Uncertainty: Businesses rely on consistent guidelines for long-term planning and compliance.

Ferguson highlights the guidelines’ alignment with existing case law and their role in providing clarity without being overtly partisan.

“A complete revamp is rare... If we get into this process where every single time a new administration comes in, they jettison the guidelines... they will become basically meaningless.” [12:45]

Addressing Big Tech and Market Power

The conversation shifts to the regulation of major tech platforms like Google and Meta. Ferguson distinguishes between natural monopolies—arising from superior products and services—and illegal monopolistic practices that stifle competition and degrade consumer welfare.

He cites the FTC’s ongoing cases against Meta for its acquisition of Instagram and WhatsApp, emphasizing that maintaining monopolistic control without competitive checks violates antitrust laws:

“If we have monopolies and they're being maintained illegally... my job as an antitrust enforcer is to do something about that.” [38:44]

Ferguson also discusses the challenges of measuring uncompetitive behavior beyond pricing, such as product quality and consumer choice, especially in platforms where services are offered for free in exchange for data.

“One of the ways you can measure a loss of competition is if product quality is degraded without a meaningful competitive impact...” [34:30]

Monopoly in the Modern Internet Economy

Ferguson elaborates on the complexities of applying traditional antitrust principles to the digital landscape, where network effects and user base concentration create formidable barriers to entry. He contends that while network effects are inherent to the internet economy, they should not shield companies from antitrust scrutiny if they exploit their dominant positions to the detriment of consumers and competitors.

“The antitrust laws do not actually forbid monopoly itself... What you can't do is maintain your monopoly from things unrelated to your skill or the quality of your product.” [36:38]

Censorship and Market Power

A contentious topic in the discussion is the interplay between market power and content moderation on digital platforms. Ferguson emphasizes that while the FTC does not seek to police speech, it is concerned with how monopolistic control can lead to consumer harm, including arbitrary deplatforming without competitive repercussions.

He shares personal anecdotes illustrating how large platforms wield their market power to influence content visibility, often without facing competitive consequences:

“We have a giant electric utility monopoly... But if you take the antitrust laws very seriously... you can avoid the need for ex ante regulation.” [33:10]

Ferguson argues that monopolistic platforms can easily manipulate user experiences, such as altering ad loads or content policies, without facing penalties due to their dominant market positions.

Section 230 and Content Moderation

Ferguson addresses the limitations imposed by Section 230 of the Communications Decency Act, which grants internet platforms immunity from liability for user-generated content. He criticizes the broad interpretation of Section 230 that shields platforms from government enforcement actions related to content moderation.

“The FTC has tried to enforce Section 5... and we have lost cases because of Section 230.” [50:34]

Ferguson advocates for reforming Section 230 to allow greater accountability for platforms, ensuring they adhere to their own terms of service and do not abuse their market power to control content arbitrarily.

“Consumers can protect themselves better from censorship if they're able to at least hold platforms to their terms of service.” [45:40]

Conclusion and Final Thoughts

Andrew Ferguson concludes the discussion by reiterating the FTC’s dedication to enforcing antitrust laws that go beyond traditional economic metrics, encompassing broader aspects of consumer welfare and market fairness. He underscores the administration’s commitment to preventing monopolistic practices that hinder innovation, degrade product quality, and exploit consumer and laborer rights.

“A market isn't free if monopolists get to charge you higher prices, degrade your Product quality, deprive you of innovation because of their market power.” [45:41]

Ferguson’s vision for antitrust under the Trump administration represents a departure from both previous laissez-faire approaches and the more expansive consumer welfare interpretations of the Biden era. His approach seeks to restore a balance where vigorous antitrust enforcement ensures competitive, fair, and innovative markets that genuinely serve consumer interests.

Notable Quotes:

• Andrew Ferguson [06:03]: “I will throw every resource the agency has at prosecuting cases against Big Tech that we've got going so unequivocally.”

• Andrew Ferguson [12:45]: “If we get into this process where every single time a new administration comes in, they jettison the guidelines... they will become basically meaningless.”

• Andrew Ferguson [34:30]: “One of the ways you can measure a loss of competition is if product quality is degraded without a meaningful competitive impact...”

• Andrew Ferguson [45:41]: “A market isn't free if monopolists get to charge you higher prices, degrade your Product quality, deprive you of innovation because of their market power.”

This episode provides a comprehensive look into the Trump administration's approach to antitrust enforcement through Andrew Ferguson's leadership at the FTC. It highlights the administration's focus on robust competition, broader definitions of consumer welfare, and the challenges of regulating dominant tech platforms in the modern economy.