There’s a leadership change in Washington that will have a massive impact on business. As President Donald Trump enters the Oval Office, he signals a changing of the guard at the Federal Trade Commission, which has made a flurry of moves in the final weeks of the Biden administration. 

FTC Chair Lina Khan’s term has already expired and Trump named Commissioner Andrew Ferguson to helm the regulator during his administration. Ferguson criticized his predecessor’s regulatory activity as her time as chair ran out. 

Lina Khan’s last stand

In her final act as chair, the FTC levied a $20 million fine against the maker of the video game Genshin Impact and forced it to stop selling loot boxes to teens under 16 without parental consent. A loot box allows players to use real money to get a randomized in-game item.

The tactic is used in many modern games and is often compared to gambling. Ferguson voted in favor of the action but did dissent on a few specific points.

The regulator also cleared the way for ExxonMobil’s $60 billion merger with Pioneer Natural Resources and Chevron’s $53 billion deal for Hess. The FTC did prohibit the CEOs of Pioneer and Hess from serving on their respective boards.

Ferguson voted against the decision, joining Commissioner Melissa Holyoak in her dissent of the ruling, which she called a “pre-inauguration swan song.”

Meanwhile, the FTC sued PepsiCo on Friday, Jan. 17, for price discrimination. The commission claimed the company gave lower pricing to an unnamed retailer. Walmart appears to be that unnamed retailer, according to multiple reports.  

“When firms like Pepsi give massive retailers a leg up, it tilts the playing field against small firms and ultimately inflates prices for American consumers,” Khan said in a statement. 

Ferguson was not in favor of action against PepsiCo. 

“On the eve of its eviction from power at the hands of the American voters, the Commission’s Democratic majority offers one final insult to the Commission, its staff, and the rule of law,” he wrote in his dissent. “In a cynical attempt to tie the hands of the incoming Trump Administration, the Democratic majority launches a major lawsuit on little more than a hunch.”

The FTC, along with Illinois and Minnesota, also filed a lawsuit against tractor giant John Deere, claiming it prevents farmers from being able to repair their own equipment or use independent shops, which the regulator said boosted the company’s profits. 

Ferguson was against the lawsuit, saying it “appears to be the result of brazen partisanship,” “lends to the suit the stench of partisan motivation,” and appears to be “taken in haste to beat President Trump into office.”

Khan’s FTC ordered H&R Block to overhaul its advertising and customer service practices, claiming it made “deceptive claims about ‘free’ tax filing.” H&R Block will also need to pay $7 million to compensate customers harmed by those practices. 

While it didn’t take any action on this, the regulator issued its second big report claiming the “Big 3” Pharmacy Benefit Managers raised prices on generic drugs at their affiliated pharmacies, generating $7.3 billion in added revenue from 2017 to 2022. 

Ferguson again took issue with the timing of the latest report.

“After having already issued one rare interim report, what’s one more,” he asked in his concurring statement. “Were it up to me, I would have preferred the Commission take the time needed to complete its work and issue a final report when it is ready to do so.”

Changing of the guard

Khan’s FTC touted accomplishments over the last four years, including banning “junk fees” for short-term rentals and event tickets, finalizing “click to cancel” rules and getting $245 million in refunds from Fortnite maker Epic Games.

It also blocked a $24.6 billion merger between Kroger and Albertsons while attempting to stop others, like Microsoft’s acquisition of Activision Blizzard.

Moving forward, Ferguson is expected to take a different direction with the regulating agency when it comes to mergers, which Wall Street welcomes. Still, he has previously promised to be tough on Big Tech.

“At the FTC, we will end Big Tech’s vendetta against competition and free speech,” he said in an X post after Trump announced he would be the FTC’s next chair. “We will make sure that America is the world’s technological leader and the best place for innovators to bring new ideas to life.”

Despite the early indications of his intentions with Big Tech, Ferguson is still expected to have a lighter touch. 

“He will clearly roll back Khan’s head-scratching anti-tech agenda, including ending efforts to regulate AI and abandoning a brutal standard for any merger of any size for the tech world,” Wedbush Securities Analyst Dan Ives wrote in a December note.