Federal Trade Commission (FTC) Chair Lina Khan said the agency is now targeting Big Tech and aims to tackle the most significant issues rather than simply increasing the number of cases. Khan emphasized the importance of focusing on major players causing the most harm.
FTC Chair Lina Khan Renewed Focus on Accountability in Big Tech
Lina Khan highlighted the agency's renewed focus on holding Big Tech accountable during Tuesday's TechCrunch Strictly VC event in Washington, D.C. Khan emphasized targeting entities responsible for significant harm rather than merely increasing the caseload.
According to TechCrunch, Khan stressed the importance of systematically identifying players driving illegal behaviors. She likened the strategy to going after "mob bosses" rather than lower-level associates for more effective enforcement.
The Department of Justice and the FTC have entered a deal to probe Microsoft, OpenAI, and Nvidia for possible antitrust violations. This initiative follows the FTC's previous actions against Meta, Amazon, Google, Apple, and other industry giants in recent years.
Khan emphasized the FTC's aim for an impactful enforcement strategy, opting to tackle lawsuits against big players. She noted that if the FTC succeeds in this endeavor, it can benefit the marketplace.
She said that the types of cases selected by the FTC could act as a deterrent, noting that the FTC is already witnessing that happen.
Lina Khan, nominee for Commissioner of the Federal Trade Commission (FTC), testifies during a Senate Committee on Commerce, Science, and Transportation confirmation hearing on Capitol Hill in Washington, DC, April 21, 2021. (Photo by SAUL LOEB / POOL / AFP) (Photo : SAUL LOEB/POOL/AFP via Getty Images)
Changing Landscape of Antitrust Considerations
Five to seven years ago, antitrust concerns were not a primary consideration in discussions or analyses of deals. Now, they are a focal point from the outset, which is advantageous for regulators as it reduces the need for extensive resources to address such deals.
Addressing a group of startup founders and venture capitalists who view exits as a significant pathway, Khan noted that the law primarily prohibits exits or acquisitions that strengthen a monopoly or enable a dominant company to pose a competitive threat.
Khan said that the FTC annually receives approximately 3,000 merger filings and scrutinizes about 2% of those deals for further examination. In her address to startup founders and venture capitalists focused on exits, Lina Khan noted that the law primarily prohibits acquisitions that strengthen a monopoly or enable a dominant firm to pose a competitive threat.
Khan's advocacy for increased accountability in Big Tech marks a significant departure from past practices. By targeting entities responsible for substantial harm and employing a strategic approach akin to dismantling "mob bosses," the FTC aims for more effective enforcement.
As antitrust considerations become integral to deal discussions, the FTC's proactive approach reduces the need for extensive interventions, benefiting regulators and industry stakeholders. This leadership underscores the FTC's evolving role in safeguarding market integrity and fostering innovation in the digital age.
