FTC Approves Regulation to Ban Noncompete Agreements Nationwide

Published: 23 April 2024 at 18:57

Business

The Federal Trade Commission (FTC) voted 3-2 to approve a regulation banning noncompete agreements nationwide, citing unfair limitations on worker mobility and lower pay. The ban would apply to all workers, including senior executives, with existing noncompetes treated differently for senior executives earning over $151,164 annually. Business groups and Republican lawmakers oppose the rule, advocating for noncompetes as crucial for protecting trade secrets and promoting competitiveness.

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Federal Trade Commission Act of 1914 (Wikipedia)

The Federal Trade Commission Act of 1914 is a United States federal law which established the Federal Trade Commission. The Act was signed into law by US President Woodrow Wilson in 1914 and outlaws unfair methods of competition and unfair acts or practices that affect commerce.

Federal Trade Commission (Wikipedia)

The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction over federal civil antitrust law enforcement with the Department of Justice Antitrust Division. The agency is headquartered in the Federal Trade Commission Building in Washington, DC.The FTC was established in 1914 with the passage of the Federal Trade Commission Act, signed in response to the 19th-century monopolistic trust crisis. Since its inception, the FTC has enforced the provisions of the Clayton Act, a key antitrust statute, as well as the provisions of the FTC Act, 15 U.S.C. § 41 et seq. Over time, the FTC has been delegated with the enforcement of additional business regulation statutes and has promulgated a number of regulations (codified in Title 16 of the Code of Federal Regulations). The broad statutory authority granted to the FTC provides it with more surveillance and monitoring abilities than it actually uses.: 571 The FTC is composed of five commissioners, who each serve seven-year terms. Members of the commission are nominated by the President and subject to Senate confirmation, and no more than three FTC members can be of the same party. One member of the body serves as FTC Chair at the President's pleasure, with Commissioner Lina Khan having served as chair since June 2021.

U.S. Regulators and State Attorneys General Sue to Halt Kroger-Albertsons Merger

The Federal Trade Commission and nine state attorneys general are suing to prevent the $24.6 billion merger of Kroger and Albertsons, the two largest supermarket chains in the U.S. The FTC argues that the merger would lead to higher prices, lower-quality products, and reduced competition. Kroger and Albertsons, which employ around 720,000 people, presented the merger as a way to better compete with other major retailers. The deal faces opposition from various parties, including unions and state officials, concerned about its impact on consumers and workers.

FTC Criticizes Microsoft's Layoffs Following Activision Blizzard Acquisition

The Federal Trade Commission (FTC) has accused Microsoft of contradicting its promises made during the acquisition of Activision Blizzard. The FTC criticized Microsoft for the layoff of 1,900 workers in January, which represented about 8% of its gaming division. The FTC argued that the layoffs were inconsistent with Microsoft's suggestion that the two companies would operate independently post-merger. The FTC is still appealing a district court's decision not to block Microsoft's Activision Blizzard acquisition.

US Antitrust Officials File Suit to Block Kroger and Albertsons Merger

The Federal Trade Commission filed a lawsuit to block Kroger's $24.6 billion acquisition of Albertsons, citing concerns about higher prices for groceries and essential household items. The Biden administration argues that the merger would drive up prices, impacting consumers negatively. Kroger defended the deal, pledging to lower prices and upgrade stores. The potential merger, aimed at competing with Walmart and Amazon, faces opposition from the FTC and several states, including Nevada and Arizona. Rising food prices and consumer protection are central issues in the legal battle that could influence the 2024 election results in key battleground states.