FTC Chair 'Deeply Suspicious' of AI Firms Seeking Antitrust Exemptions

The chairman of the U.S. Federal Trade Commission (FTC), Andrew Ferguson, stated that requests from artificial intelligence companies for both new regulations and antitrust exemptions should be viewed with deep suspicion. Ferguson's remarks, delivered at a Georgetown University event on Tuesday, signal a skeptical stance from a key U.S. regulator on how the burgeoning AI industry should be overseen.

A Warning on Regulation and Competition

Speaking in his personal capacity, Ferguson voiced significant concern over the dual lobbying efforts by some AI firms. He warned against companies that are actively asking Washington for a comprehensive regulatory framework while also seeking to be shielded from competition laws.

"If companies are simultaneously coming to Washington and asking for a host of regulations and an antitrust exemption, all of my alarm bells go off," Ferguson said. He characterized these actions as a potential strategy by established players to protect their market position.

Concerns Over 'Barriers to Entry'

Ad

Ferguson argued that such a combination of requests could be an attempt by incumbent firms to create barriers to entry, which would insulate them from future challengers. By shaping regulations in their favor and securing immunity from antitrust scrutiny, dominant companies could cement their leadership and hinder innovation.

"They’re asking for barriers to entry that will insulate their incumbency from challenge," he explained. "And I think if you combine that with the requested antitrust exemption, everyone should be deeply suspicious about this."

Policy Context

Ferguson emphasized that he was expressing his personal opinion and that the ultimate federal policy on artificial intelligence would be set by President Donald Trump's administration. His comments nonetheless provide insight into the thinking at the top of an agency central to policing anti-competitive behavior in the U.S. economy, including the high-growth technology sector.