On April 3, 2023, the American Antitrust Institute submitted comments in response to the Federal Trade Commission’s Notice of Proposed Rulemaking on the Non-compete Clause Rule in Docket FTC-2023-0007-0001. AAI’s goal in providing comments is to aid agencies in promulgating rules and guidance that support robust competition and make the best use of agency enforcement and policy tools for achieving pro-competition goals. AAI’s comments applaud the FTC for exploring the use of rulemaking to address a major competition concern in labor markets. The initiative is an important part of an enforcement program to expand antitrust’s focus on labor markets.
AAI’s comments applaud the FTC for exploring the use of rulemaking to address a major competition concern in labor markets. AAI’s comments focus on how the FTC can minimize potential setbacks for the proposed rule that could arise on judicial review. One issue is how a final rule could be better supported by additional studies and more sophisticated analysis of economic evidence, including meta-studies, to reinforce the basis upon which a near total ban on non-competes rests. A second issue is how the Commission can and should deploy other policy tools, such as guidelines, to aid transparency and predictability regarding how the agencies will go about evaluating whether non-compete clauses are anti-competitive.
Read the full letter here: AAI Comments FTC NPRM Noncompetes