Trump Administration To Reinstate Consumer Welfare Standard In Antitrust

Federal Trade Commission seal is seen in Washington

The nomination of Slater for Assistant Attorney General of the Antitrust Division has sparked discussions about the future of antitrust enforcement in the United States. With a background that includes work in the Trump 45 administration, the Federal Trade Commission, and the private sector, Slater is expected to bring a broad and deep understanding of antitrust issues to the role.

If confirmed, Slater and FTC Chairman Andrew Ferguson are expected to advocate for a return to the Consumer Welfare Standard (CWS), which has been a guiding principle in antitrust law since the Supreme Court's 1979 Reiter v. Sonotone opinion. The CWS, as outlined in Professor Robert Bork's book 'The Antitrust Paradox,' emphasizes that competition benefits consumers by lowering prices, increasing output, improving customer service, and fostering innovation.

On the other hand, the Biden administration has been criticized for deviating from the CWS and adopting what some refer to as the 'Brandeisian Antitrust' view. This approach, characterized by a lack of clear standards and a focus on breaking up big companies, has raised concerns about its impact on innovation and economic growth.

Slater brings a wealth of experience from various sectors to the role.

Slater's nomination raises discussions on antitrust enforcement in the US.

Slater and FTC Chairman expected to advocate for the Consumer Welfare Standard.

Recent antitrust actions by the Biden DOJ, such as the Visa and RealPage lawsuits, have come under scrutiny for their potential overreach. Critics argue that these actions may be driven more by political motives than by a genuine commitment to protecting competition.

Slater and the Trump administration are expected to review these cases and potentially reverse some of the Biden administration's antitrust policies. By reinstating the CWS and focusing on protecting competition rather than pursuing social policies, the Trump administration aims to promote innovation and economic growth.

Overall, the debate over antitrust enforcement reflects broader discussions about the role of government in regulating markets and ensuring fair competition. The outcome of Slater's confirmation and the subsequent actions of the Trump administration will likely have far-reaching implications for the business landscape in the United States.