Federal Trade Commission (FTC) Chair Andrew Ferguson may not always align perfectly with free-market principles, but his recent defense of American businesses and consumers against the European Union’s regulatory overreach deserves praise.
As Norm Singleton writes in RealClearMarkets, Ferguson’s actions mark a welcome shift from his predecessor Lina Khan—who “assisted the EU in placing new regulations on American tech companies.” In contrast, Ferguson has taken a firm stand against both the Digital Markets Act (DMA) and Digital Services Act (DSA), warning that they threaten U.S. innovation and free speech.
“The DMA targets ‘gatekeepers’ by forcing them to share their intellectual property with their smaller competitors and give them access to their operating systems! This is the equivalent of forcing KFC to share Colonel Sanders’ secret fried chicken recipe with rival chain Popeyes.”
Ferguson’s concern goes beyond intellectual property. The EU’s Digital Services Act, under the guise of protecting democracy, effectively compels large online platforms to police speech and remove undefined ‘misinformation’ and ‘hate speech.’ As Singleton notes, this vague standard gives European bureaucrats “almost unlimited discretion to take down any post that offends their sensibilities.”
“By defining the terms so broadly, the act allows EU bureaucrats almost unlimited discretion to take down any post that offends their sensibilities. The DSA could lead to increased censorship of American citizens.”
In response, Chair Ferguson sent a letter to major tech companies warning that censoring Americans to comply with foreign laws could violate Section 5 of the FTC Act, which prohibits unfair and deceptive acts. Ferguson reminded companies that Americans do not expect to be censored to appease a foreign power.
Singleton concludes that Ferguson’s stance is not about defying Europe—it’s about protecting Americans’ First Amendment rights and ensuring that U.S. policy is made in Washington, not Brussels or London.
“He simply acted to protect the rights of American citizens from the anti-liberty laws of the EU and UK. This is not just an appropriate function of the federal government, but is the government’s most important job.”
At a time when global regulators are increasingly eager to impose their will on American innovation and expression, Ferguson’s letter is a refreshing reminder that the FTC’s first duty is to the American people—not to foreign governments.
Read more in RealClearMarkets by clicking here.
