The Biden administration's stringent regulatory approach towards large corporations has hampered economic expansion, according to a group of entrepreneurs, venture capitalists, and business experts who spoke with Fox News Digital.

The recent failed merger between Albertsons and Kroger, challenged by the Federal Trade Commission (FTC) under Biden-appointed Chair Lina Khan, exemplifies this trend. The FTC argued the merger would reduce competition and inflate prices. This intervention marks another instance of the administration's assertive stance against large companies.

Venture capitalist Ravin Gandhi, a former CEO with experience in mergers and acquisitions, shared his perspective. He revealed that potential strategic buyers have been deterred due to the anticipated regulatory hurdles and lengthy legal battles. He cited Khan's focus on even mid-market mergers and acquisitions as contributing to this climate.

The FTC headquarters in Washington, D.C.

This sentiment resonates with other analysts who observe that businesses are preemptively adjusting their transactions to avoid antitrust scrutiny from the FTC and Department of Justice. A study by Morgan Lewis, an international law firm, indicated that under the Biden administration, nearly 75% of transactions subjected to increased government scrutiny faced enforcement action.

Grant Cardone, CEO of Cardone Capital, voiced his disapproval, arguing that the administration's approach hinders business operations. He expressed concern over regulatory challenges, claiming they create significant obstacles for entrepreneurs.

Cardone Capital CEO Grant Cardone.

Numerous other business leaders and venture capitalists echoed these concerns, suggesting that business expansion has been stifled. Kison Patel, a financial tech entrepreneur and host of the "M&A Science" podcast, pointed to a significant decrease in deal-making activity, particularly within the tech sector, attributing it to the FTC's aggressive enforcement.

Armen Martin, a seasoned mergers and acquisitions lawyer, noted optimism among venture capitalists regarding the anticipated change in FTC leadership with the incoming Trump administration and Andrew Ferguson's nomination as FTC Commissioner. He predicted a resurgence in merger and acquisition activity under a less interventionist regulatory environment.

President Trump addressing regulations in 2017.

In contrast, FTC spokesperson Douglas Farrar defended the agency's actions, stating that the blocked grocery merger demonstrates the positive impact of robust antitrust enforcement on consumers, workers, and small businesses, preventing price increases.