The Federal Trade Commission (FTC) voted to ban most noncompete agreements, a significant move for the U.S. workforce. The new rule prohibits companies from using noncompetes and retroactively eliminates most existing agreements. The FTC estimates that the ban could increase worker pay by $300 billion annually and lead to the creation of over 8,500 new businesses each year. Business groups are opposing the rule, and the U.S. Chamber of Commerce has promised to sue to block it.
The Federal Trade Commission (FTC) has issued a final rule banning noncompete agreements nationwide, impacting millions of American workers. The FTC’s decision, passed with a 3-2 vote, prohibits noncompetes for all but senior executives earning over $151,164 and holding policy-making positions. The agency estimates that the rule will affect approximately 18% of U.S. workers, or 30 million people. The rule is expected to increase business formation by 2.7%, resulting in an estimated 8,500 new businesses per year, and boost worker earnings by $524 annually. The FTC also claims that it will lead to an average of 17,000 to 29,000 more patents each year for the next decade.
The Federal Trade Commission (FTC) has unanimously voted to ban noncompete agreements nationwide. These agreements prohibit employees from working for competing companies within the same industry after leaving their current job. The FTC estimates that approximately 30 million Americans are currently subject to noncompetes, which can limit career opportunities, suppress wages, and hinder economic growth. The ban, which will take effect 120 days after its publication in the Federal Register, will apply to both new and existing noncompetes, excluding those for senior executives with high salaries and policy-making roles. Business groups have pledged to challenge the rule, but the FTC maintains that it will promote worker mobility, foster innovation, and increase economic dynamism.
In a landmark decision, the Federal Trade Commission (FTC) has voted to prohibit noncompete agreements, a common practice that has been criticized for stifling worker mobility and suppressing wages. The rule, which takes effect in August, affects all industries and requires companies to scrap existing noncompete agreements. Critics argue that the FTC lacks the authority to enact such a broad rule, and several lawsuits have already been filed to challenge it. Unions and worker advocates, however, commend the move as a victory for workers’ rights.
Despite Broadcom’s revised cloud licensing practices, critics argue that underlying concerns, such as price increases, unfair terms, and product bundling, remain unresolved. The company maintains it offers more customer choice, while critics urge antitrust regulators to investigate. Amidst these developments, Oppenheimer analyst Rick Schafer remains optimistic, citing Broadcom’s strong position in the semiconductor industry and potential benefits from growing demand for data center artificial intelligence.
The Federal Trade Commission has filed a lawsuit to prevent Tapestry Inc.’s acquisition of Capri Holdings Ltd., citing antitrust concerns. The complaint alleges that the merger would lead to higher prices for handbags and accessories in the affordable luxury sector, harming consumers.
A class action lawsuit has been filed against iRobot Corporation alleging that the company made false and misleading statements regarding the likelihood of antitrust approval for its merger with Amazon. The complaint alleges that iRobot failed to disclose that U.S. and European antitrust regulators were unlikely to approve the merger, and that iRobot overstated the likelihood of successfully completing the transaction. As a result of these alleged misstatements, investors suffered damages when the merger was ultimately blocked by regulators.
The Supreme Court has permitted a lawsuit filed by Relevent Sports, a soccer promoter owned by Miami Dolphins owner Stephen Ross, to continue against FIFA and the U.S. Soccer Federation (USSF). The suit claims that FIFA’s policy of prohibiting countries from hosting league matches involving teams from different countries violates antitrust laws.
