NEW YORK — Contrary to conventional wisdom, the United States Supreme Court's reversal of the four-decade-old "Chevron deference" doctrine is potentially one of its most anti-business rulings yet. The damage to companies — especially highly innovative firms — could be profound, with serious long-term consequences for the US economy.
In essence, the recent decision in Loper Bright Enterprises v. Raimondo means that when Congress has been either silent or ambiguous on specific rules to enforce a statute, courts need no longer defer to executive-branch agencies' interpretation of that statute. This may sound arcane, but the real-world effect is dramatic. Courts, rather than regulators, will now be the final rule-makers in the US on everything from drug approvals and transportation regulations to food safety — all without the requisite scientific and domain expertise.
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