What Is ‘Unfair’ Competition?

[Commentary] Benton’s Headlines mainly track developments at the Federal Communications Commission, but major telecommunications and media policy news also comes from the Federal Trade Commission. That was true when the FTC released the Statement of Enforcement Principles Regarding “Unfair Methods of Competition” Under Section 5 of the FTC Act on August 13. This is just the kinda summer reading that DC wonks long for. Now two or more firms or even industries battling to win customers’ business is almost universally seen as a good thing, generally leading to lower prices, new and better products and services, and expanded consumer choice. A competitive market, it is believed, promotes innovation by rewarding producers that invent, develop, and introduce new and innovative products and production processes. But as is the case with every silver lining, there can be a touch of gray. What if some players cheat? What if their methods are not fair? Well, that’s why we have the FTC.