The Federal Trade Commission and the Justice Department issued a joint letter May 5 directing federal government agency leaders to develop a list of anticompetitive regulations that lessen competition, entrepreneurship and innovation.
The letter aims to advance President Donald Trump’s April 9 executive order that directs agencies to flag rules that promote monopolies, restrict market entry or limit economic competition.
The request comes after the FTC opened a public inquiry April 14 into how federal regulations affect competition, aiming to both identify and eliminate anticompetitive barriers. The Justice Department also kicked off an anticompetitive regulations task force in late March, with a goal of identifying and eliminating federal and state regulations that restrict market competition, like in healthcare.
In the letter, the FTC and the Justice Department asked Lee Zeldin, administrator of the EPA, to aid in locating regulations within agency authorities. Along with healthcare, other areas of concern include agriculture, energy, government contracting, technology and transportation.
“Federal regulations in the healthcare sector, especially those promulgated under the ACA, 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,” said the joint letter, signed by FTC Chairman Andrew Ferguson and Assistant Attorney General for the Justice Department’s Antitrust Division Abigail Slater.
Under the executive order, agencies must submit a list of potential anticompetitive regulations by June 18, including recommendations to modify, justify or rescind each rule. Each agency must have a senior political official that will lead the effort and coordination with both the FTC and Justice Department.