Petition U.S. Federal Trade Commission Chair Lina Khan on Anti-Competitive Practices by Matt Mullenweg of Automattic
Unprotected.org
Dear FTC Chair Lina Khan,
We are writing to express serious concerns regarding business practices by Matt Mullenweg of Automattic that may undermine fair competition and limit consumer choice by coordinating activities between a dominant for-profit and non-profit entity within the same industry.
It has become common for individuals to establish non-profits to develop open-source software (OSS) using unpaid labor and public contributions. However, they may then leverage their for-profit entity to monopolize and privatize the gains, creating a market imbalance.
Recent developments highlight how control of an OSS project by a non-profit can be exploited to limit consumer access and favor the for-profit's business interests, which may circumvent existing antitrust regulations. We respectfully request your investigation into the following issues:
For-Profit Exploitation of Non-Profit Control:
- Revoking access to critical OSS services for hundreds of thousands of competitors' customers[1] undermines market fairness.
- Disparaging competitors through a non-profit platform can unfairly manipulate consumer perceptions.
- This behavior can create monopolistic conditions without breaching antitrust laws, limiting consumer choice.
Predatory Business Practices:
- Buying out competitor contracts after impairing their services through non-profit OSS[2] weakens competition and harms smaller businesses.
Trademark Misuse:
- Non-profit filing trademarks for common industry terms[3, 4].
- The licensing of said trademarks to for-profit while restricting use by competition to inhibit entry into the market.
- This trademark trolling also leads to consumer confusion and inhibits competition from describing their services accurately.
We urge the FTC to thoroughly investigate these practices and enforce existing antitrust laws to prevent market abuse. Additionally, we encourage the creation of regulations to close the loophole that allows anticompetitive strategies through non-profits.
A competitive marketplace based on innovation, quality, and consumer choice is crucial to ensuring fair business practices. Protecting OSS and preventing its misuse will help maintain a balanced and diverse marketplace.
Your prompt action on these matters is essential to safeguarding competition and consumer rights. We trust in the FTC's commitment to uphold fair competition and to protect the interests of consumers.
Links:
- "WP Engine Banned", WordPress.org
- "WP Engine Contract Buyout", Pressable.com*
- USPTO Trademark Case #98646183
- USPTO Trademark Case #98646185
* Pressable.com is a subsidiary of Mullenweg's for-profit Automattic.
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