Bush signals antitrust shift

Under Clinton Administration Microsoft's dominance was judged to be stifling innovation and hurting consumers.

BBC News Online's North America business reporter, David Schepp.

In what appears to be yet another overture to conservatives within the Republican party, US President George W. Bush has nominated a university professor known for his scepticism of government intervention to head the Federal Trade Commission (FTC).

Mr Bush's choice of Timothy Muris to head the five member panel that oversees the FTC marks a sweeping change in the direction of the agency, which is charged with enforcing the nation's antitrust and consumer-protection laws.

And it could signal the end of any future Microsoft-style prosecutions by the US government. Mr Muris has called the Microsoft and Intel antitrust actions "wrong in fact and wrong in law"

Mr Muris would replace the current FTC Chairman Robert Pitofsky, whose term expires in September. Mr Pitofsky, who was appointed by Bill Clinton, has signalled that he would be willing to step down once the Senate has confirmed a suitable replacement.

Federal Trade Commission enforces antitrust and consumer protection laws in the US.

Mr Pitofsky's six year term has been characterised by tough enforcement of US antitrust laws, which oversees antitrust activities such as price-fixing, among other things.

He has also been a champion of consumer protection laws, which some Republicans view as costly to business.

Republican majority

As FTC chairman, Mr Muris will join two other Republicans currently seated on the 5-member panel.

Holding a 3-2 sway would allow the Republican majority to push for a laissez faire approach to government regulation, especially in terms of mergers and acquisitions. Reviewing such transactions is one of the FTC's key roles.

Mr Muris is said to view the government - not corporations - as the chief threat to competition.

Like many others members of Mr Bush's administration, it isn't the first time Mr Muris has served under a Republican president.

Mr Muris served in the Reagan administration in the early 1980s, having served as chief of both its consumer-protection and antitrust bureau.

At that time he pressed other agencies to take a "hands-off" role to business regulation.

Conservative theory

Mr Muris views stem from a belief that government intervention and not corporate dealings are what thwart competition among businesses.

"In the past he's been very concerned about government constraints on competition" said Mary Azcuenaga, a former FTC commissioner who previously served with Mr Muris.

Mr Muris has been critical of the previous administration's efforts to enforce antitrust actions without enough evidence that such efforts are necessary.

He has criticised the Clinton administration's monopolisation claims against Microsoft, Intel and American Airlines.

Web enthusiasts too are concerned the new FTC chairman will likely reverse the government's heretofore tough online-privacy rules.

The US Congress recently has begun to consider online-privacy laws that some hope will prevent companies from learning too much about internet users.

But it is likely that the commission under Mr Muris rule would drop its advocacy of such legislation, instead relying on the marketplace to provide the proper levels of privacy protection.

That could place the US in conflict with Europe, which has much toughter data-protection laws.