WASHINGTON—Sen. Ernest Hollings (D-S.C.) on Tuesday threatened to slash the budget of the Federal Trade Commission as punishment for not seeking congressional approval of a Bush administration antitrust overhaul that gives the Justice Department total jurisdiction over telecom-multimedia mergers.
Hollings, chairman of the Senate appropriations subcommittee with FTC oversight, called the antitrust overhaul “just outrageous” at Tuesday’s hearing. “What we’ll have to do is cut the budget around to get your attention,” Hollings told FTC Chairman Timothy Muris.
Muris said he did not believe congressional authorization was needed to implement the new antitrust plan. Justice’s antitrust division, Muris stated, has more experience reviewing high tech-media deals than does the FTC. Muris said analyzing antitrust implications of mergers involving different high-tech sectors is a problem for the FTC because the agency does not have legal jurisdiction over common carriers, such as wireline and wireless telecom service providers.
Hollings said any reorganization requiring the reprogramming of federal funds requires prior consent of congressional appropriators.
Last week, Hollings began a formal review of the Justice-FTC antitrust accord that was unveiled on March 6. The two agencies originally planned to announce the agreement on Jan. 17, but postponed a press briefing after Hollings raised objections. Hollings, noting neither Congress nor consumer groups were advised beforehand of the antitrust realignment, claims industry lawyers with clients having business before the FTC and Justice Department helped broker the agreement.
In addition to his appropriations role, Hollings has authorization oversight of the FTC as chairman of the Senate Commerce Committee.
