On Tuesday, President Donald Trump took a significant step by firing the only two Democratic members of the Federal Trade Commission (FTC). This move grants the remaining Republican commissioners exclusive control over the agency that plays a vital role in overseeing antitrust and consumer protection laws, as well as regulating the tech industry in the United States. The dismissed commissioners, Alvaro Bedoya and Rebecca Slaughter, publicly announced their terminations on the social media platform X, both labeling their dismissals as illegal.
In her statement posted on X, Slaughter emphasized the importance of the FTC's independence, stating, “The law protects the independence of the Commission because the law serves the American people, not corporate power.” Bedoya, in a more confrontational tone, signaled his intention to pursue legal action against the president, declaring, “I’ll see the president in court.”
The White House confirmed the firings but refrained from offering further comments. This incident marks yet another occasion where Trump has dismissed Democratic commissioners from independent agencies without cause. Legal experts suggest that this pattern may soon face scrutiny by the Supreme Court, as multiple cases challenging these dismissals are currently navigating the judicial system. The firings raise questions about the future of the FTC's ongoing cases against major tech companies, including a pivotal antitrust case against Amazon and an investigation into Microsoft's collaborations with OpenAI.
Bedoya criticized his dismissal, describing the FTC as “an independent agency founded 111 years ago to fight fraudsters and monopolists.” He expressed concern that the president aims to transform the FTC into a “lapdog for his golfing buddies.” The White House, however, maintains that the president holds complete authority over hiring and firing within the executive branch. FTC Chair Andrew Ferguson reiterated this stance, asserting, “President Donald J. Trump is the head of the executive branch and is vested with all of the executive power in our government.”
Critics of the firings, including former commissioners from various independent agencies, argue that such actions violate longstanding Supreme Court precedent that protects members from dismissal without just cause. According to the law that established the FTC, the president may only remove commissioners for reasons such as “inefficiency, neglect of duty, or malfeasance.” Additionally, the law stipulates that no more than three commissioners can belong to the same political party.
In a related legal development, a federal judge recently ordered the reinstatement of NLRB member Gwynne Wilcox, who was fired shortly after Trump assumed office. Judge Beryl A. Howell of the U.S. District Court for the District of Columbia criticized Trump’s rationale for the dismissal as “flat wrong.” The White House has appealed this decision, and the case is anticipated to reach the Supreme Court.
With the firing of Bedoya and Slaughter, the FTC now consists of only two Republican commissioners, Melissa Holyoak and Ferguson, as Lina Khan, a Democrat, resigned in January. FTC commissioners are appointed for seven-year terms, and Bedoya had four years remaining in his term, while Slaughter was set to serve until September 2029.
The FTC has historically been a key regulator overseeing competition and privacy within Silicon Valley and has intensified its scrutiny of AI companies following the launch of ChatGPT in late 2022. Under Democratic leadership during the Biden administration, the agency aggressively pursued alleged abuses of power in the tech sector, including filing an antitrust case against Amazon and investigating whether Elon Musk's X violated a privacy settlement with the agency.
Business leaders, including Musk, have criticized the FTC’s heightened oversight, characterizing it as a harassment campaign. As the 2024 election approaches, many traditional Democrats in Silicon Valley have begun to align themselves with Trump and the Republican Party, citing Khan’s regulatory approach as a factor in their discontent with the Democratic Party.
Both parties have historically supported antitrust actions against tech companies; for instance, the FTC initiated an antitrust case against Meta during Trump's first term. However, it remains uncertain how Trump's new alignment with the tech industry will influence ongoing cases as he consolidates unprecedented control over the independent agency.
Concerns regarding the independence of the FTC have been voiced by both Democrats and Republicans, who fear that these firings may undermine the agency’s ability to enforce regulations effectively. Senator Amy Klobuchar (D-Minnesota) highlighted the importance of a bipartisan FTC, stating, “It’s very important for these kinds of difficult consumer cases that oftentimes the political system cannot deal with — because of lobbying and they’re not brave — it is really important that you have a bipartisan FTC to be able to carry through on these cases.”
William Kovacic, a law professor at George Washington University and former Republican chair of the FTC, remarked that the dismissals of Slaughter and Bedoya appear to send a clear message to all independent regulatory agencies: “We mean to exercise complete control.”
In a correction, it is noted that an earlier version of this article inaccurately stated that Rebecca Slaughter was nearing the end of her term. In fact, her term was set to conclude in September 2029.
