The US Supreme Court has overturned 40 years of precedent that allowed federal agencies to reasonably interpret ambiguous laws, instead giving courts the power of interpretation that will limit regulatory authority across the federal government aimed at ensuring financial stability, protecting clean air and water, and preserving food and drug safety.
The Federal Trade Commission’s (FTC’s) Bureau of Competition and the Justice Department’s antitrust division have historically not relied on Chevron deference for antitrust enforcement, either, so today’s decision “largely means business as usual,” partner Joshua Goodman told MLex.
The FTC is currently facing challenges to its new rule to ban noncompete clauses, but the FTC’s defense doesn’t rely on the concept of Chevron deference, he said.
In terms of Hart-Scott-Rodino (HSR) Act rulemaking, the Supreme Court’s decision may impact the types of challenges that the FTC will see to that rule and how it will respond to those challenges. The DC Circuit did rely on Chevron deference in a prior case related to an HSR rulemaking, but it was a very specific issue, Josh said.
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