Trump Administration Weighs Cuts to Antitrust Division

The Trump Administration is reportedly considering significant changes to the Department of Justice’s (DOJ) Antitrust Division, potentially reallocating key sections and closing down field offices that focus on regulating industries such as Big Tech and agriculture. This proposed restructuring has raised concerns among former officials, who argue that the moves could severely undermine the effectiveness of antitrust enforcement.

According to Global Competition Review, the Administration is weighing a transfer of the Antitrust Division’s advocacy and economics sections to different parts of the DOJ. These sections are crucial to the division’s ability to challenge monopolistic behavior and scrutinize anti-competitive practices. The potential closure of regional offices, which monitor and enforce antitrust regulations in key sectors, including the tech and agriculture industries, has sparked considerable debate over the future of antitrust efforts in the U.S.

A former senior DOJ official criticized the proposals, stating, “These proposals reflect a stunning lack of knowledge regarding the Antitrust Division’s work,” underscoring the complex and specialized nature of the division’s duties. This statement reflects growing concerns within the agency about the practical implications of such a sweeping reorganization.

In an internal memo obtained by Reuters, Assistant Attorney General Gail Slater, who recently took over as head of the DOJ’s Antitrust Division, outlined her department’s priorities under the Trump Administration. Slater revealed that the division will review its spending on costly economic consultants as part of the broader federal cost-cutting initiative pushed by the President’s advisor, Elon Musk. This initiative, dubbed the Department of Government Efficiency, is focused on reducing government expenditures across the board.

Related: Democrats Urge Trump to Reinstate Ousted FTC Commissioners

The memo further emphasized that the division would concentrate its resources on making consumer markets more competitive, with a particular focus on combating inflation. “We have world-class economists in-house, and we can and should utilize and maximize their talents before seeking outside help,” Slater wrote, indicating a shift towards relying more heavily on in-house expertise instead of external consultants, whose fees can reach up to $30 million per case.

This move is part of a broader strategy to balance the Administration’s commitment to aggressive antitrust enforcement with its desire to rein in government spending. While the DOJ has a long history of using economic consultants to assess complex cases, such as mergers and acquisitions, Slater’s memo suggests that the division will lean more on its internal resources moving forward.

Additionally, Slater highlighted that the department would prioritize competition in sectors critical to national security, including artificial intelligence (AI), 5G technology, and quantum computing. “We are relying on competitive markets to win these global technological races, and antitrust has a key role to play here,” she said, pointing to these industries as key areas of focus for her division in the future. Global Competition Review reports that these three sectors will likely see heightened scrutiny from the DOJ as the U.S. seeks to maintain a competitive edge in these rapidly evolving technological fields.

Source: Global Competition Review