The FBI (FTC) has dropped its case against Pepsico after the previous administration accused the beverage giant of providing Wall Mart with an anti -competition pricing feature compared to other retailers. Separately, the new committee for all Republicans dropped the long issue against Microsoft’s acquisition of Activision Blizzard.
While these companies have clearly welcomed the FTC, critics, especially former FTC president, Lina Khan, have criticized these procedures.
FTC tried to prevent Microsoft’s acquisition of Activision Blzezard
For the context, days after Microsoft announced the acquisition of Activision-Blizzard in January 2022, FTC said it would review the deal and voted to prevent treatment later that year. However, in July 2023, a federal judge granted Microsoft a historic victory by hitting FTC attempt to ban the planned acquisition over Activision Blzezard, and the company completed that deal later that year.
FTC appealed the decision that refused to ban this deal but lost its appeal on May 7. I finally decided to withdraw this issue, and in its file, The International Energy Agency said“The committee has decided that the public interest is in the best way by rejecting administrative litigation in this case.”
Likewise, the agency withdrew the case against Pepsico, which accused the company of providing the preferential prices for Walmart at the expense of other retail companies. Walmart has managed to secure low prices because it has a much larger purchasing power than the smaller grocery stores, and this deal with Pepsico is just one of many. This case was presented by the way just three days before Donald Trump’s inauguration.
The Chairman of the Federal Trade Committee said: “Biden-Hharress rushed to the Federal Trade Committee to clarify this issue just three days before President Trump was installed in a tangible political effort to commit this administration to follow up more than one intuition that Pepsi violated the law.” Andrew Ferguson, in his stomach statements, announces the withdrawal of this case.
“Taxpayers dollars should not be used in doubtful party exciting work,” added Ferguson, who opposed this step as the Federal Trade Commission in January.
FTC may be exposed to a shortage of employees after cutting
The Federal Trade Committee Commissioner Melissa Hollyuk, who opposed the case when submitted, said that the agency had never had to follow the case and described it as a “losing battle.” She added that the withdrawal of these cases would help FTC focus its energies on other cases as it has “a reason to believe that the law has been violated.”
It is worth noting that although FTC has always been subjected to players, things have changed to the worse after the discounts made by Elon Musk headed by the Ministry of Government efficiency (Doge).
In the case of Microsoft, FTC did not provide a lot of interpretation of its decision. The deal, which was the largest acquisition in the history of the game industry, was examined by many organizers who warned of the consequences of monopoly. Competition organizers in the United States and the United Kingdom sought to prevent integration, but the latter was wiped in October 2023.
Companies welcomes the drops of cases
Meanwhile, Microsoft welcomed the decision to withdraw the case, as President Brad Smith wrote on LinkedIn, “Today’s decision is a victory for players throughout the country and for a proper calculation in Washington, DC, we are grateful to the Federal Trade Committee to announce today.”
Pepsi also welcomed the decision and said: “Pepsico will always be supplying all customers with fair, competitive, non -discriminatory, discounts and promotional value.”
Critics move to dropping cases
However, critics criticized this step to drop these cases. Comment on the rejection of the Pepsico/Walmart case, Lee Hipner“This separation of merit is a victory for monopolies and billionaires.” He added, adding an insult to the injury, the agency brought down the case just one day before the parties appeared to justify widespread revision of the complaint, and it was deprived of the ability to review the facts and judge the advantages of themselves. This is the institutional pardon for Walmart and Pepsico. “
Annoying behavior @Ftc.
This lawsuit may protect families from paying higher prices in the grocery store and stopped his behavior, which pressure companies and small societies throughout America.
She rejected her gift to giant retailers because she is preparing for high prices. https://t.co/fglazmi8js
– Lina Khan (@linamkhan) May 22, 2025
In her tweet, former FTC president Lin Khan described the agency’s dropping of her case against Pepsico as a “annoying behavior”. She added: “This lawsuit may protect families from paying higher prices in the grocery store and stopped their behavior that pressure small companies and societies throughout America. It was rejected by a gift for giant retailers because it is preparing for long -distance walking prices.”
“Rejection of the case against Pepsico/Walmart is” in support of the predators that Walmart uses to crush local grocery stores, create food accounts, and increase prices. “
FTC voted only 3-0 to drop this issue-and this is the approval of the predators that Walmart uses to crush local groceries, create food deserts, and increase prices. This will strike the most difficult working, rural and black societies. https://t.co/9jvbzsv4gz
Stacyfmitchell May 22, 2025
Will consumer prices rise because FTC is soft?
FTC was significantly active under the management of Joe Biden after decades of hibernation. Among the main measures taken by the agency during the Khan era to vote to impose the right to reform. Khan was particularly targeting technology giants such as Alphabet, Apple and Amazon due to alleged anti -monopoly issues. The Ministry of Justice of the Biden Administration was very aggressive against anti -competition tactics in the technology industry. It also led to the dismantling of Google on her monopolistic works.
Trump, on the other hand, pledged lower regulations, and his administration was more integrated and acquired. Its federal trade committee seems to take a rear seat and end an investigation into corporate price stiffness. While the Trump administration has been criticized in a few companies that wander their prices amid definitions, Democrats claim that stopping this investigation will only encourage companies participating in prices nomination.
in letter For Ferguson, 36 Democrats said, “armed with the knowledge that FTC has sparked a party to this price fraud tactic, companies now have the freedom to use monitoring pricing for price consumers.” The letter added that, according to a former official in the Federal Trade Committee, “the message that comes out of this administration … is that the supervisory body has disappeared and that companies feel brave to tear people.”
In general, with many companies looking to high prices amid the chaos of customs tariffs, FTC is strong and pre -emptive than ever. Although the current administration did not put the brakes in all its issues, which are those against a handful of technology giants, companies prefer America more than its predecessor.
