From Trump's endorsement of media mergers that benefit him to politically motivated FCC probes, regulatory agencies are being weaponized. Their purpose is shifting from independent review for consumer benefit to tools for rewarding allies and punishing political enemies.
The drama surrounding Sarepta's gene therapy, where a top regulator was ousted after political pushback and later reinstated, shows the FDA is now more amenable to outside influence. This case study indicates that presidential and activist pressure can directly impact regulatory enforcement and personnel decisions, moving beyond purely scientific considerations.
The Trump administration's strategy for control isn't writing new authoritarian laws, but aggressively using latent executive authority that past administrations ignored. This demonstrates how a democracy's own structures can be turned against it without passing a single new piece of legislation, as seen with the FCC.
As traditional economic-based antitrust enforcement weakens, a new gatekeeper for M&A has emerged: political cronyism. A deal's approval may now hinge less on market concentration analysis and more on a political leader’s personal sentiment towards the acquiring CEO, fundamentally changing the risk calculus for corporate strategists.
The Trump administration's influence over who leads the massive Fannie Mae/Freddie Mac IPO is a classic autocratic move. While punishing enemies is well-understood, just as crucial is over-rewarding allies, which consolidates power and creates an ecosystem of cronyism.
The Supreme Court is systematically dismantling laws that protect heads of independent agencies (like the CFPB and FTC) from being fired at will. This aligns with the "unitary executive theory," concentrating power in the presidency and eroding the apolitical nature of regulatory bodies.
FCC Chairman Brendan Carr is reversing decades of deregulation by reasserting control over broadcast TV content while maintaining a hands-off approach to the internet. This creates a free speech double standard where the delivery mechanism, not the content, determines government scrutiny, targeting weaker legacy media.
The key risk facing biomedical innovation is not just policy chaos, but the normalization of political and ideological influences on science-based regulation. This includes CEOs negotiating prices with the president and FDA enforcing pricing policies, breaking long-standing norms that separated science from politics.
Unlike post-presidency ventures, lucrative commercial deals offered to a sitting first family function as a form of bribery. A studio's multi-million dollar offer is not a bet on creative talent but an investment in gaining favorable regulatory outcomes, such as merger approvals, from the administration.
Regulatory capture is not an abstract problem. It has tangible negative consequences for everyday consumers, such as the elimination of free checking accounts after the Dodd-Frank Act was passed, or rules preventing physicians from opening new hospitals, which stifles competition and drives up costs.
When considering major media mergers, Donald Trump's decision-making is more likely to be swayed by a company's perceived strength and 'winner' status than by political loyalty. He disdains neediness, making a dominant player like Netflix more appealing than allies who appear thirsty for a deal.