FTC Chair Ferguson Rejects Khan-Era Antitrust, Eyes Settlements

Senator Ted Cruz, who chairs the Commerce Committee, said Congress needs to pass laws reforming the FTC's use of consent decrees. Cruz argued that these decrees have given the agency the ability to control businesses for decades and that legislation should limit their duration. He said he hopes to introduce consent decree reform this year.

Some Democrats criticized Ferguson and Meador for targeting physicians and hospitals that perform gender reassignment surgery on minors. Ferguson's critics argue that the FTC is exceeding its authority by going after companies for First Amendment-protected activities, including boycotts. They warned that such cases could backfire on conservatives if a future administration uses the same logic against right-leaning groups.

The current Supreme Court has shown skepticism toward independent agencies. The Court has already issued a stay in a case involving FTC firings, leaving the removals in place until a final decision. Supporters of separation of powers see this as a positive sign, while critics worry about concentrating too much power in the executive branch. One proposed solution would require the President to explain FTC commissioner firings to Congress.

Ferguson's testimony suggests a narrower, more predictable FTC than the one under Khan. Companies evaluating M&A strategy will watch whether the settlement-first approach translates into actual deal approvals and whether Congress follows through on consent decree reform.