The flag of the United States of america into the republic for which it stands one nation under god indivisible with liberty and justice for all. Thank you gentleman. We do note todays hearing as wenormally do with Opening Statements in the bible got right to our witnesses appreciate being with this today. Speech in berlin in 2022 chair consult an audience of challenges facing antitrust today work quote the result of a choice made 40 years ago to file the misguided philosophy of people other words according the view over the last 40 years is a bipartisan view. More than 20 congressman six president ial ministrations adopted by all 50 states and their enforcement is now somehow wrong. Considerate of the 40 or seos economy grew from 3 trilliondollar annual economy to 25 trillion was the single greatest spirit of Wealth Creation in human history. Everyone who oversaw it cannot deny for those in decades according to the chair it was wrong. She no space shined usher in a radical departure from the norms that made the American Economy great to assist him or her and her cronies have unchecked power over Business Practices in our country untethered from any reasonable reading of precedent or statutory law. But we should ask now of the two years and didnt tell her tenure howitzer approach to any trusting and playing out as she as well as critical agencies in our government. The short answer is it has been a disaster push investigations and make demands about a substantive followthrough or logic for the request itself but she centralizes decisionmaking at the commission within her office, eliminating pretax or due process or transparency in that decisionmaking. Approach is best characterized as one of intimidation followed by in action. The best example of this, which is because of work on that weapon nation select measure mr. Targeted harassment of twitter. After mr. Musk bob the 20 from democrat senators leftwing activist groups, issued over 350 requests for information from twitter. These requests included asking for every communication about inside the company, most troubling for information about twitters work with journal working to shed light on government driven censorship practices that existed. I think some cases still exist in big tech. We got a great Court Decision last week the talked about how pervasive this effort was an appeal of the injunction thus this morning though in a filing in federal court we learned the situation is even worse than we could have imagined. More than harassment it was a shakedown. The ftc as is common practice pursuant to the order required twitter to hire an independent assessor. Independent assessorwhose legale truly independent and objective, not to one party or another. It turns out objectivity was not with the federal trade commission was interested in here. Here is with the filing said about ernst young the independent investor hired in this matter. Quote the ftc was so adamant with ernst young conveying this is absolutely what you will do this is going to occur you will produce a report at the end of the day that will be negative about twitter. Seen ernst Young Leaders. That ernst young resigned as independent investor, the ftc would take exception to the withdrawal and create other challenges for ernst young overtime. This is not conjecture from twitter for this is from sworn testimony independent assessor in the deposition itself. Take it just last month. This is outrageous. This is unacceptable the kind of fear that occurs in the Banana Republic not in the United States of america. And so it is no wonder has no interest in providing information to the representative in the congress for the people of this committee will be asked for. Today the ftc is not going to go by the signal request for documents from this committee. Not even her own staff impressed with her leadership 2020 the left or the Trump Administration 87 of them employees agreed Senior Leaders have high standards that figure felt to 53 in 2021 as a client even further to 49 in 2022. On 202080 employees agreed they have a high level of respect for ftc leak Senior Leaders again under the chairman that figure plummeted to 49 . These numbers are before is revealed recently that the chair was advised by ethics counsel to recuse herself from a major case. She did not recuse herself and that approves of misled congress about taking that advice. As a lot of questions today to get through. Look forward to the response from the chairman of ftc. What that i yield to the gentleman of new york the Ranking Member for Opening Statement too. Thank you, mr. Chairman. Mr. Chairman, since you brought up robert, i must say i applaud the last 40 years the courts unfortunate following of his doctrine upending all prior understanding of antitrust law has resulted in a terrible misinterpretation of antitrust law and is directly responsible for the overconcentration of industry and the power of big business in todays economy. Mr. Chairman, yesterday the director of the fbi of the witness during the six hours and doing a steady stream of conspiracy theories the far right narrative that make resignation on fox news. Today it is the chair of the federal trade commissions turn to step into the alternate universe in the House Judiciary Committee under the public and publicanleadership the last timu were here, you set on this side of the stable helping to reinvigorate this committees work on antitrust matters and i thank you for your service to the committee. Unfortunately i expect that today youll be the target of a barrage of personal attacks and wild accusations the work of the ftc under your leadership. Republicans will tell us the commission is wasting resources for the ftc has returned over four to 30 million to consumers under your watch. As of vigorously enforcing the Laws Congress has entrusted to it. Meanwhile it is the House Republicans who have wasted untold congressional and agency Staff Resources and millions of dollars in pursuing a fruitless search for evidence of misconduct. Majority will also argue the ftc investigation into twitter was politically motivated and conducted at the behest of congressional democrats. This argument also has no basis in fact. Twitter has been in trouble for failing to adequately protect the privacy of its users for more than a decade. This is subject to a descent could decree on this topic as far back as 2011. Came at her second Consent Decree last year and given the haphazard conduct of its new owner it may very well be subject to new scrutiny today. The cftcs duty to review compliance with the dissent decree particularly when it occurred last year their there credible concerns that user data may have been compromised when majority and engineering staff is fired. This has nothing to do with the owner own of the company in his political views. Protecting user privacy is not political. Rushing to defend the company at all costs in investigating the agents attempt to hold that Company Accountable merely because the new owner shows your political views is another matter. Ultimately chair, you will face attacks today because you are doing your job. That is what threatens republicans the most. Federal trade commission was created and charged with enforcing antitrust and Competition Laws to respond to a rise in consolidation across the market in the early 1900s. Bring down the trust in the power strength of the economy help support the formation of a strong middle class. Unfortunately in recent decades executive branch took a radical turn away from enforcement of the antitrust laws and kept us safe and prosperous for nearly a century. That failure led to massive consolidation across the market gave rise to a handful of dominant companies with the power to call squash competition. The rise of monopolies in several fields was to the corporate class but it has been devastating to consumers, workers, Small Businesses. This began to change with the biden administration, now several steps reinvigorate the enforcement of federal antitrust law. By thankfully interpreted the original intent of the antitrust law and the ftc act to ensure fair competition crisis. The administration has announced the party is over large and unfettered corporations. Though most americans welcome this change and indeed our economy is booming and unemployment is at a historic low. The commitment to enforcing these laws has raised alarm among our republican colleagues for they have taken aim at your agency and the important work the ftc does protect consumers from competition. I hope my republican colleagues will find within themselves to put their baseless and often personal attacks on pause long enough to listen to the importance of your mission. In any event i appreciate you appearing here today. I appreciate the valuable work of the ftc. I look forward to your testimony and that youll back the balance of my time folks atonement yields back without objection Opening Statements will be included in the record we will now introduce todays witnesses the honorable is the chair of the federal trade commission shoe sworn in june 15, 22 not we welcome our witnesses and thank her for appearing here today. Well begin by swearing you and would you please rise and raise your right hand . Do you swear, affirm under penalty of perjury that the testimony about to give us true, and correct the best of your knowledge and information and beliefs of your god . At the record reflect the witness answered in the affirmative, thank you. Please tell your written testimony the that your written test may be entered into the record in its entirety and summarize your testimony and five minutes will be low lax with that if you need a few extra. Chair e may begin movably with questions. Ask chairman jordan, Ranking Member nadler and members of the committee, thank you for inviting me too testify today. I am glad to join it to discuss the ftc work to promote fair competition and protect americans from unfair or deceptive practices. It is a particular honor to appear before this committee were i had the great privilege of serving during its historic bipartisan investigation to digital market and the power of Large Technology platform. Assist committee knows well there is long been a battle in this country between monopoly power and americas democratic institution. Congress created the ftc in 1914 against the backdrop of an Industrial Revolution that had delivered significant technological advances also enable intense consolidation. Given the national and ease about the unchecked power these monopolies could yield, lawmakers task the ftc of preventing unfair methods of competition and scrutinizing Business Practices through regular Data Collection and continuously building expertise. In the subsequent Years Congress has expanded our legislative mandates to include laws aimed at protecting. With each of these efforts congress has redoubled its commitment to fair competition at rooting up unfair and deceptive Business Practices. At the ftc our northstars for isfilling the important mandate congress is given us in doing all that we can to faithfully enforce the laws and safeguard american citizens and businesses from harmful and even dangerous concentrations of private power, that characterize significant loss in our economy today. Im endlessly impressed by the talent and tenacity especially in the face of ongoing resource constraints and legal challenges to our authority. Over the past 24 months the ftc is me the childs major transaction that would have eroded competition in critical l sectors of the economy. Click defense, semiconductors and pharmaceuticals. Youre tackling anticompetitive practices including those that harm american farmers, Small Businesses and workers. Master the ftc in a Bipartisan Coalition of 10 state attorney general charged to large manufacturers with unlawful and prevented farmers from having access to Cheaper Products costing them billions of dollars but in january, ftc proposed rules have been employers from imposing noncompete restrictions, elected workers collectively depress their wages by up to 300 billion while also depriving startup businesses the employees they need for expanding a p. Eight months since proposing we have received over 21000 Public Comments including from nurses, doctors, fast food workers and hairdressers. They all told us how noncompete head hurt their livelihood and undermine the economic. Already several Enforcement Actions by the ftc of ledfords to drop noncompete restrictions imposed on thousands of workers. The ftc continues to use his tools to connect much. Last year end the commission launched an inquiry to the practices pharmacy benefit managers to shed light on the opaque operations of the large middlemen who could dictate pricing and access the lifesaving drugs for millions of americans. This in court both thousands of Public Comments the ftc received explain the reallife costs practices. When doctor for example recounted how delays in approval because her patient to develop resistance to an otherwise effective treatment, ultimately lead to the needless law loss of the patients life great addition to its critical areas of work we are redoubling our efforts protect americans privacy in combat fraud. We were also activating additional authorities to congress is given up. How can to protect consumers, protect military families from predatory financing protect Addiction Recovery patients. We are fighting to protect the security of peoples personal data and have obtained record monetary judgments including largest ever judgment to protect children. The commissions proposed rules to attract the most widespread scams like government impersonation fraud, made in usa product and online reviews. Agency is tackling American Consumers want to charge us for us running sensitive data. Are quick to cancel proposal would require companies that easy to Cancel Subscription as it is to sign up for one. The ftc is committed to fighting for peoples right to repair their own products, ftc has brought several major actions against companies for imposing unlawful repair restrictions, hurting customers and independent shops alike. Others ftc drawing on all cylinders everyday to protect the American People for unlawful Business Practices. The talent and dedication are second to none. It is a deep honor and i am enormously proud to see how our Enforcement Actions and policy work are materially helping americans in their daytoday lives. In the aggregate work helps promote the open competitive resilient market that has been the bedrock of americas economic success and dynamism throughout our nations history. Thanks for the opportunity to appear before hearing you here today im happy to answer questions. Thank you madam chair. X like other federal agencies ftc as designated. On april 18, 2023q testify before a subcommittee of the house energy and commerce committee. At the hearing chair rogers sq quote are there any instances you have not followed the advice . He responded no followed up by saying you quote have consulted and take actions consistent that they have made. On june 15, 2023 the journal analyzing ability to sit as a judge acquisition. According to the ethics memoranda the quote recommend you recuse to avoid an appearance of a part in partiality concern pursuant to federal ethics regulation. You believe your honest and forthcoming with converse when you asked in the instances where youre not bolded advice you answered no. Yes or no . Yes congressman. In that letter you sent to this committee yesterday you claim you received only oral advice but never saw the leaked memo until after you decided not to recuse yourself. It is unbelievable to me would not ask for advice on this particular topic. You have written ethics advice on other topics but on this topic you claim you did not see the written memo and said you want us to believe you only received oral advice not specific oral advice and only general advice on understanding the legal framework. They give you advice is different than what was written in the memoranda . Thank you for the question congresswoman. Fort might work before he joined the commission. I need you to answer the question that i asked. The question i asked was did you receive different oral advice than what was written in the memoranda from dale . Its a very simple question. I consulted with the ethics official as was noted in the memo you cite although i did not receive that memo noted the ultimate framework in which someone has no financial conflict of interest. Parks that should give no different oral advice that was given the equal memoranda yes or no . Them themselves determine whether they should or should not recuse. It she give you different advice than what was orally that what was in the written memoranda yes or no . Parks congressman as was noted in the written memoranda did not felt the advice you could have recuse at any time couldnt you . I fold the determination there was no pic with two could have recuse at any time couldnt you . There is no violation. I have not a penny and financial stocks not a penny. Gave advice to recuse you did not do so, correct . Ask congresswoman at noted in the memo progress im going to move on since you are not willing to answer my question. I read your fourpage letter which was nothing more than a front your obligations on this integrity and work this tr