FTC and DOJ Launch Major Review of Anticompetitive Federal Regulations
Introduction
In a sweeping move with far-reaching implications for the American economy, the Federal Trade Commission (FTC) and the Department of Justice (DOJ) Antitrust Division have initiated a comprehensive review of federal regulations deemed to be anticompetitive. This initiative, announced on May 5, 2025, is a direct response to President Trump’s recent executive orders aimed at dismantling regulatory barriers to competition, entrepreneurship, and innovation. The joint letter from FTC Chairman Andrew N. Ferguson and DOJ Antitrust Division Assistant Attorney General Abigail Slater directs every federal agency to identify and recommend changes to rules that may stifle competition, with the ultimate goal of revitalizing the U.S. marketplace and reducing unnecessary government intervention[1][2][3].
This effort is part of a broader deregulatory push by the Trump administration, which has made regulatory reform a central pillar of its economic agenda. The FTC and DOJ’s coordinated campaign not only seeks input from federal agencies but also actively solicits public comment, inviting stakeholders across the economy to participate in shaping the future regulatory landscape[4][5][6]. As agencies and the public respond, the FTC and DOJ will consolidate recommendations and advise the Office of Management and Budget (OMB) on which regulations should be rescinded or modified.
The Executive Order and Its Mandate
President Trump’s executive order, issued April 9, 2025, sets the tone for this government-wide review. The order directs the FTC to lead the process of identifying and eliminating federal regulations that “reduce competition, entrepreneurship, and innovation.” The scope is intentionally broad, covering all federal regulations, not just those under FTC or DOJ jurisdiction[3:1].
Key elements of the executive order include:
- Agency Review: All federal agencies must review their regulations and identify those that are anticompetitive, create or facilitate monopolies, establish barriers to entry, limit competition, or otherwise distort free markets.
- Recommendations: For each identified regulation, agencies must recommend deletion, propose specific modifications, or justify the regulation’s continued existence despite its anticompetitive effects.
- Timeline: Agencies are required to submit their lists and recommendations to the FTC within 70 days of the order. The FTC, in consultation with the DOJ and the Assistant to the President for Economic Policy, must then forward a consolidated list to the OMB within 90 days.
- Expedited Action: The executive order encourages agencies to use statutory “good cause” exceptions to the Administrative Procedure Act, allowing for the swift repeal of regulations without the usual notice-and-comment period in certain cases[3:2].
This aggressive timeline and broad mandate reflect the administration’s determination to overhaul the regulatory state in pursuit of greater economic dynamism.
The Role of the FTC and DOJ
FTC’s Leadership
The FTC, under Chairman Andrew N. Ferguson, is charged with coordinating the review and ensuring that the process is both thorough and expedient. The agency has issued a public Request for Information (RFI), inviting comments from businesses, workers, consumers, start-ups, investors, academics, and other interested parties on how federal regulations may harm competition[4:1][3:3]. The comment period is open for 40 days, closing on May 27, 2025.
The FTC’s RFI specifically seeks input on regulations that:
- Exclude new market entrants,
- Protect dominant incumbents,
- Predetermine economic winners and losers,
- Create unnecessary licensing or accreditation requirements,
- Burden agency procurement processes,
- Or otherwise reduce competition and innovation[3:4].
DOJ’s Anticompetitive Regulations Task Force
Parallel to the FTC’s efforts, the DOJ’s Anticompetitive Regulations Task Force is conducting its own inquiry, focusing on both federal and state regulations. The DOJ’s primary areas of interest include transportation, healthcare, housing, food and agriculture, and energy-sectors where regulatory barriers are believed to have the greatest impact on American households[5:1][6:1].
The DOJ’s process involves:
- Soliciting public comments (deadline: May 26, 2025),
- Engaging professional staff (attorneys and economists) to independently identify problematic regulations,
- Partnering with other federal and state agencies to advocate for the removal of anticompetitive rules,
- Filing amicus briefs and statements of interest in relevant litigation,
- Providing comments on proposed state and federal legislation[5:2][6:2].
The DOJ’s efforts are guided by two Trump administration executive orders: one declaring the alleviation of unnecessary regulatory burdens as official policy, and another directing agencies to review and identify rules that impede small businesses and private enterprise[5:3].
The Public Inquiry: Engaging Stakeholders
A central feature of this regulatory review is the unprecedented level of public engagement. Both the FTC and DOJ have opened their processes to comments from all market participants, including:
- Consumers,
- Businesses (large and small),
- Start-ups,
- Trade associations,
- Workers,
- Investors,
- Academics,
- State and local governments[4:2][5:4][6:3].
The agencies are particularly interested in hearing about regulations that:
- Make it difficult for new businesses to enter a market,
- Protect established players from competition,
- Increase costs for consumers without clear public benefits,
- Stifle innovation or entrepreneurship,
- Create unnecessary administrative burdens.
Comments submitted to either the FTC or DOJ will be shared between the agencies, ensuring a coordinated approach. All submissions will be posted publicly on Regulations.gov, promoting transparency and accountability[4:3][6:4].
Agency Responsibilities and Reporting
Federal agencies are now under a tight deadline to conduct internal reviews and report back to the FTC and DOJ. Each agency must:
- Review all regulations within its rulemaking authority,
- Identify those that are anticompetitive or otherwise inhibit competition,
- Provide a recommendation for each: deletion, modification (with specific changes), or justification for retention,
- Submit their findings to the FTC and DOJ within the prescribed timeline[1:1][3:5].
The FTC and DOJ will then:
- Consolidate agency recommendations,
- Add any additional regulations they identify as problematic,
- Consult with the Assistant to the President for Economic Policy,
- Forward the final list to the OMB with recommendations for rescission or modification[3:6].
Focus Sectors and Potential Impact
While the initiative is government-wide, certain sectors are expected to receive particular scrutiny due to their outsized influence on the economy and consumers.
Healthcare
The DOJ has highlighted healthcare as a sector where regulations often “encourage overbilling and consolidation,” leading to higher costs and reduced competition. The review will focus on rules that limit entry by new providers, restrict telemedicine, or facilitate hospital mergers that reduce patient choice[5:5].
Transportation
Transportation regulations that limit competition among airlines, railroads, or shipping companies are also in the crosshairs. The DOJ and FTC will examine rules that create barriers for new entrants or protect incumbent operators from competition[5:6][6:5].
Housing
Housing regulations, particularly those affecting financing, construction, and zoning, are seen as significant contributors to the nation’s housing affordability crisis. The agencies will look for rules that artificially inflate costs or limit the supply of new housing[5:7].
Food and Agriculture
In food and agriculture, the review will target regulations that restrict competition among producers, processors, and retailers, or that create unnecessary barriers to entry for small and mid-sized farms[5:8][6:6].
Energy
Energy sector regulations that limit competition among utilities, restrict new energy technologies, or create monopolies in generation or distribution will also be reviewed[5:9].
Broader Deregulatory Context
The FTC and DOJ’s review is part of a much larger deregulatory agenda advanced by the Trump administration. This agenda includes:
- Executive orders prioritizing the repeal of regulations found to be unlawful under recent Supreme Court decisions,
- Presidential memoranda instructing agencies to use expedited procedures to repeal certain regulations,
- OMB’s own request for deregulation ideas from the public and private sector,
- Agency-level efforts, such as the Federal Communications Commission’s campaign to identify and delete outdated rules[3:7].
The administration’s goal is to “unleash competition by eliminating unnecessary, burdensome, and wasteful government regulations,” restoring what it sees as the proper balance between government oversight and free market dynamism[5:10][3:8].
Potential Benefits and Risks
Prospective Benefits
Proponents of the review argue that it will:
- Lower barriers to entry for new businesses,
- Reduce costs for consumers,
- Increase innovation and entrepreneurship,
- Enhance market efficiency,
- Promote job creation and economic growth.
By targeting regulations that protect incumbents or create artificial monopolies, the initiative aims to level the playing field and foster a more dynamic, competitive economy.
Potential Risks
However, there are also risks and criticisms:
- Regulatory Uncertainty: Rapid deregulation, especially without the usual notice-and-comment process, could create uncertainty for businesses and consumers.
- Loss of Protections: Some regulations, while arguably anticompetitive, may serve important public policy goals such as health, safety, environmental protection, or consumer rights.
- Litigation: The expedited repeal of regulations could prompt legal challenges, especially if stakeholders believe due process was not followed.
- Market Instability: Sudden changes in the regulatory environment could disrupt markets, particularly in heavily regulated sectors like healthcare and energy[3:9].
Stakeholders are encouraged to weigh both the opportunities and risks, and to advocate for the retention of regulations that provide necessary stability and clarity.
Next Steps and Timeline
The process is unfolding rapidly:
- Public Comment Period: Open until May 26 (DOJ) and May 27 (FTC), 2025.
- Agency Submissions: Federal agencies must submit their lists of anticompetitive regulations and recommendations within 70 days of the executive order.
- Consolidation and Submission to OMB: The FTC, in consultation with the DOJ and the White House, will forward a consolidated list to the OMB within 90 days.
- Implementation: The OMB will work with agencies to rescind or modify identified regulations, potentially using expedited procedures in some cases[1:2][3:10].
Conclusion
The joint FTC and DOJ review of anticompetitive federal regulations marks a pivotal moment in U.S. regulatory policy. By combining agency-led review with robust public engagement, the initiative seeks to reshape the federal regulatory landscape in favor of greater competition, innovation, and economic growth. The process is ambitious and fast-moving, with the potential to affect nearly every sector of the economy.
As agencies, businesses, and the public respond, the coming months will reveal which regulations are targeted for reform and how the balance between deregulation and necessary oversight will be struck. The outcome will have lasting implications for American consumers, workers, entrepreneurs, and the broader economy.
https://www.ftc.gov/news-events/news/press-releases/2025/05/ftc-doj-issue-letter-seeking-identification-anticompetitive-regulations-across-federal-government ↩︎ ↩︎ ↩︎
https://whtc.com/2025/05/05/trump-administration-seeks-to-id-anticompetitive-regulations/ ↩︎
https://www.wiley.law/alert-Trump-Directs-FTC-to-Lead-Government-Wide-Rescission-and-Modification-of-Anticompetitive-Federal-Regulations ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎
https://www.ftc.gov/news-events/news/press-releases/2025/04/ftc-launches-public-inquiry-anti-competitive-regulations ↩︎ ↩︎ ↩︎ ↩︎
https://www.mcguirewoods.com/client-resources/alerts/2025/4/new-administration-antitrust-push-doj-ftc-to-identify-anticompetitive-government-regulations-and-labor-related-practices/ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎
https://www.kslaw.com/news-and-insights/dojftc-initiatives-seek-public-comment-on-anticompetitive-government-regulations ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎