Staff Reports
The Biden administration’s Federal Trade Commission (FTC) has recently taken an eyebrow-raising detour from its typical turf wars between American companies. It appears they reached out to Temu, a major Chinese e-commerce player, to gather materials for their antitrust case against Amazon. This trend of cozying up to foreign competitors while targeting American businesses raises some serious flags about prioritizing national interests.
According to reports, the FTC’s communication spree with Temu included letters and discussions occurring between December 2024 and Inauguration Day. David J. Gilman, a former FTC attorney now with the International Center for Law and Economics, questioned the legitimacy of the FTC’s case against Amazon, which alleges that the company’s pricing policies harm consumer choice and disadvantage third-party sellers. Critics have noted that this seems rather sus—turning to a Chinese firm for incriminating evidence against a major American corporation doesn’t come off as a strong strategy for promoting fair competition.
In a stunning twist, Temu proved itself to be more than just a competitive headache for Amazon. Known for its eye-catching ads during the Super Bowl, it has also attracted unfriendly reviews from experts like Diane Rinaldo. She painted a rather sinister picture of Temu, suggesting it operates as an “information-gathering spyware program” disguised as an e-commerce platform. Given China’s surveillance laws, the notion that Temu could act in the interest of a foreign regime isn’t merely paranoid—it’s a legitimate concern. If the Biden FTC is ready to tilt the scales in favor of a Chinese company while undermining an American giant, the question arises: whose interests are really being served here?
In addition to data privacy worries, Temu’s business practices appear to skirt dangerously close to violating the Uyghur Forced Labor Production Act. Reports reveal that Temu leverages the U.S. de minimis provision to bypass accountability for forced labor compliance while depending on a multitude of Chinese suppliers. Shockingly, the company allegedly executes zero audits and has no substantial compliance checks to ensure their products aren’t tied to modern-day slavery in Xinjiang. In essence, the FTC seems to be willing to overlook serious moral and legal concerns to build its case against an American powerhouse—if that’s not a double standard, nothing is.
So Biden's FTC asked Temu for help in pursuing action against an American company; ignored Temu's being a data collector for the CCP to harm us soon or later; and disregarded Temu's laxity re slave labor.
My not-surprised face is getting a workout todayhttps://t.co/UE3PX2KamW
— Nan Hayworth, M.D. (@NanHayworth) January 30, 2025
The Biden FTC’s approach under previous chair Lina Khan can be best described as hostile toward American tech companies, marking them as villains while giving international competitors a free pass. Following the transition of administrations, the spotlight now falls on the new FTC chair, Andrew Ferguson. It remains to be seen whether he will protect American interests or adhere to the previous regime’s adversarial tactics towards homegrown companies.
While the FTC has issued a tight-lipped response on these developments, one thing is crystal clear: the Biden administration’s apparent willingness to favor a foreign competitor over an American juggernaut raises serious questions about its commitment to protecting U.S. businesses. It’s hard not to wonder who’s actually working for whom when foreign interests take front and center in a domestic antitrust case.
