In his second term, President Donald Trump is reshaping the Federal Trade Commission (FTC) in a way that signals a sharp pivot in how the U.S. government approaches Big Tech regulation. The Trump administration’s new direction for the FTC is a mix of deregulation, personnel overhaul, and a reassertion of pro-business values, which could have sweeping implications for Silicon Valley.

A New FTC Leadership Slate

One of the most immediate and visible changes has been President Trump’s replacement of key FTC officials. Chair Lina Khan, who led the commission through a wave of antitrust lawsuits against major tech platforms, stepped down under pressure earlier this year. In her place, Trump appointed Andrew Ferguson, a conservative legal scholar known for his skepticism of antitrust overreach.

Ferguson, formerly legal counsel to Senate Republicans, has argued that aggressive antitrust enforcement can stifle innovation and hurt consumers more than it helps. His confirmation was met with praise from pro-business groups and criticism from progressive advocates who fear the rollback of efforts to hold Big Tech accountable.

Antitrust Pushback: Reversing the Khan Doctrine

During Khan's tenure, the FTC pushed forward with landmark cases against Amazon, Meta (Facebook), and Google, accusing them of monopolistic practices. However, under Trump 2.0, those efforts are being reevaluated.

Sources within the agency report that Ferguson is advocating for settlements over prolonged litigation. The FTC’s case against Amazon, which was expected to set a new precedent in digital marketplace regulation, is now rumored to be headed toward a negotiated resolution that may water down original demands.

This shift has alarmed antitrust reformers. “The FTC is backing away from its watchdog role just when tech monopolies are consolidating more power,” said Sarah Miller, executive director of the American Economic Liberties Project. “It’s a clear signal that Trump’s FTC is taking the side of Big Tech, despite his populist rhetoric.”

A Return to “Consumer Welfare” Standards

Under Khan, the FTC embraced a broader view of antitrust—focused not just on prices, but also on competitive structure, innovation, and privacy. Trump’s FTC is returning to a more traditional “consumer welfare” framework, which focuses narrowly on whether business practices result in higher prices or reduced quality for consumers.

This doctrinal shift is music to the ears of industry giants, who argue that many of their services are free or low-cost, and thus do not harm consumers under this standard.

Deregulatory Agenda and Data Privacy

Beyond antitrust, the Trump administration has begun walking back several FTC initiatives aimed at expanding consumer privacy protections. Proposed rules to tighten data handling standards and rein in behavioral advertising have been shelved, pending a “regulatory impact review.”

Instead, Trump’s FTC is pushing for a market-driven approach, encouraging voluntary compliance and self-regulation by companies. Critics warn this could embolden data brokers and platform giants to collect and monetize user data with even less oversight.

Congressional Gridlock Boosts Executive Power

With Congress deeply divided, the Trump administration is relying heavily on executive influence to steer federal agencies. In the FTC’s case, this means more direct coordination with the White House Office of Information and Regulatory Affairs (OIRA), which is now playing a greater role in vetting FTC rulemaking.

There are growing concerns about politicization. Former FTC officials argue that increased executive interference could undermine the agency’s independence. “The FTC was designed to be a bipartisan body insulated from politics,” said one former commissioner. “Turning it into a political tool risks damaging its credibility.”

What This Means for Big Tech

For now, tech giants can breathe easier. Under Trump 2.0, the regulatory headwinds they faced over the last few years appear to be weakening. Stock prices of major tech firms surged modestly following Ferguson’s confirmation, with analysts interpreting the move as a green light for less aggressive enforcement.

However, this reprieve could be temporary. Several state attorneys general continue to pursue their own antitrust cases, and courts may yet rule in favor of tougher oversight. Additionally, a future administration could once again reverse course, as seen during the Biden-Khan era.

Conclusion: A Regulatory Pendulum in Motion

The FTC’s transformation under Trump 2.0 marks a significant turning point in U.S. tech policy. While it offers relief for Big Tech in the short term, it also raises deeper questions about the consistency and independence of American regulatory institutions.

Whether this deregulatory momentum leads to greater innovation or renewed public backlash remains to be seen. But one thing is clear: the future of tech oversight in the U.S. is once again in flux, and the stakes are as high as ever.

This article is based on publicly available government records, expert commentary, and interviews with current and former regulatory officials. All information reflects developments as of May 2025.