The Corner

Economy & Business

Today in Capital Matters: FTC Overextension

Andy Jung of TechFreedom writes that the FTC already has enough to do without having to enforce a complex ban on “self-preferencing”:

For enforcement actions, the FTC would most likely file an administrative complaint, bringing the case before an administrative law judge (ALJ). If the ALJ ruled against the platform, the platform would undoubtedly challenge the decision, forcing the commission to review the case. If the commission affirmed the ruling, the platform would inevitably appeal the agency’s decision to the U.S. Court of Appeals for the D.C. Circuit.

In court, the platform would avail itself of the Act’s affirmative defense, arguing that the self-preferencing conduct was necessary to prevent a violation of the law, to protect users, or to enhance functionality. The lawyers would have a heyday. Ultimately, the FTC would find itself in court arguing over the motivations of large technology companies. These self-preferencing suits would be a far cry, if not a distraction, from the fraud and merger cases in the agency’s wheelhouse.

Read the whole thing here.

Dominic Pino is the economics editor and Thomas L. Rhodes Fellow at National Review and the host of the American Institute for Economic Research podcast Econception.
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