ANKENY, Iowa (DTN) -- A member of the Federal Trade Commission (FTC) who was fired from his post in March vowed to keep fighting market concentration and corporate power in agriculture and other industries -- but cautioned against political interference within the FTC as well.
Alvaro Bedoya visited a farm on Saturday in central Iowa at a forum hosted by the Iowa Farmers Union. Members of the group talked with Bedoya about everything from disappearing grocery stores to the consolidation of farm input suppliers and monopolized farm equipment that creates repair challenges. Participants painted a stark picture of the economic forces squeezing small producers and hollowing out rural communities.
Bedoya's background is on privacy and technology. He was confirmed by the Senate for a four-year term on the FTC in May 2022 that wasn't set to expire until September 2026. He and Rebecca Slaughter, two Democrats on the FTC, were fired by President Donald Trump in mid-March. They have since filed a lawsuit arguing their terminations were illegal, as others have done.
Their case to regain their positions is likely influenced by a Supreme Court ruling in a separate case with similar circumstances. The High Court ruled 6-3 that the president could temporarily remove people from independent board members while litigations over those firings continue to move through the court. The court could overturn a 1935 precedent that had declared the president could not remove independent commissioners without cause.
"We could win. We could lose. But the reason I'm here is I'm still trying to do my job to the best of my ability," Bedoya said. "I can't access my files. I can't access my computer, but I can still meet with you. I can give you a little attention that I draw to highlight the issues you're facing."
Bedoya then listened as farmers talked about competition issues. He had held a similar event in Iowa three years ago. Former FTC Chairwoman Lina Kahn also held an event with Iowa Farmers Union last year as the group sought to block the sale of a fertilizer plant in the state.
Sean Dengler, who recently quit farming in Tama County, Iowa, said he was getting ready for soybean harvest last autumn when the combine had an error code that only a Deere & Co. technician could read and fix. It took hours for a local technician to arrive and determine a circuit board "was fried." Dengler said he was told he would have to pay extra to get the parts the next day rather than wait.
"This extortion and paying for a technician to come down both days to diagnose and fix the problem further lowered my already low profit," Dengler said. "Since John Deere has no serious competition, we lost time waiting, which meant lost yield potential and we lost money because Deere can charge more because that is their business plan."
Giving farmers the ability to fix the equipment they bought would allow more repair businesses to stay open and support the rural economies, Dengler said. This would also help farmers get back into the fields quicker.
Dengler, though, won't be farming. He said he had to make the decision this year to quit farming his family's land. Dengler said it wasn't profitable for him to live in Des Moines and continue to operate a small farm two counties away.
One of the last cases filed by the FTC before Trump's inauguration is against Deere & Co., over the right to repair. The FTC was joined by Illinois and Minnesota, and the states of Arizona, Michigan and Wisconsin also have joined the lawsuit. The case alleges Deere monopolizes repair service markets, enabling its dealers to maintain a 100% market share and charge high prices for repair services as a result. That case now is tied up in motions with the states and FTC asking the U.S. District Court for Northern Illinois for access to a database Deere maintains to analyze financial information submitted monthly by dealers.
Iowa Farmers Union President Aaron Lehman said he just spoke with lawyers from the FTC late last week, asking about equipment and repair issues. "They're looking for more conversation with Iowa farmers and with independent repair technicians around the state of Iowa and around the country," Lehman said.
The FTC also continues to lead a case with 12 states against Corteva and Syngenta in the U.S. District Court for North Carolina Middle District over allegations both companies paid distributors "loyalty programs" only if they limit their business with distributors of generic products, "leaving farmers to pay elevated prices for crop protection." The FTC seeks to bar Corteva and Syngenta from continuing those programs. That case was filed in September 2023 and remains tied-up over discovery motions.
Speaking about other competition issues, Bedoya talked about the FTC's successful case last year blocking the $25 billion merger of grocery giants Albertsons and Kroger. The merger was blocked in courts over concerns it would reduce competition and lead to higher consumer prices. Explaining the challenges, Bedoya said the grocers spent more on attorneys and experts for that case than the entire FTC budget.
Bedoya's point was FTC was successful because it was proactive, but it is significantly harder to unravel a monopoly once a company has built that market power through a merger.
"The amount of time it takes to stop a merger that has not yet happened is massive," Bedoya said. "To undo a merger that has already happened is gargantuan. It is something that kind of happens once in a legal generation."
Asked about his concerns over the Federal Trade Commission, Bedoya said, "Who is it going to work for? Is it going to work for the billionaires? Or is it going to work for everyone else?"
Bedoya said the FTC is now moving to reverse itself on a decision that blocked the CEO of Texas oil company Pioneer from joining the board of Exxon Mobil. The FTC had placed those restrictions on the merger between Pioneer and Exxon Mobil.
In May, the FTC also dismissed a lawsuit against PepsiCo., that was filed in the final days of a Democratic majority. Current FTC Chairman Andrew Ferguson called the case against PepsiCo "a nakedly political effort to commit this administration to pursuing little more than a hunch that Pepsi had violated the law."
Bedoya said the FTC alleged Pepsi was giving a big-box retailer preferential promotions that weren't offered to other grocers. "That kind of lawsuit matters to independent grocers," he said. "That is, it is a big deal and it's a big deal that it's dropped."
Bedoya said he is worried the FTC will also lose its focus on going after big companies. That would then take away a stick that helps reduce undue market influence. "We can sue these big companies that are dominating the lives of farmers, small producers, small retailers," he said.
Instead, Bedoya noted the FTC has now opened an investigation into Media Matters, a small liberal watchdog organization. The FTC is alleging Media Matters colluded with advertisers to drive down advertising revenue for Elon Musk's X. Musk already is suing Media Matters separately. The FTC opened the investigation in May, before the political fallout between Musk and Trump.
"Whether you are a Republican or a Democrat, whether you like Mr. Musk or don't, or like President Trump or don't, this simply is not what the FTC is for," Bedoya said. "The FTC is not for fighting your political fights ... It's not for political warfare. And so those are the trends that I've seen that really worry me."
Also see, "FTC Pesticide Antitrust Lawsuit Against Syngenta, Corteva Continues Under Trump," https://www.dtnpf.com/…
Chris Clayton can be reached at Chris.Clayton@dtn.com
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