GOP mocks, Dems support FTC chair amid criticism for antitrust, ethical issues

During a lengthy session before the House Judiciary Committee, Democratic lawmakers provided support for Federal Trade Commission (FTC) Chair Lina Khan as she faced intense questioning. Republicans, on the other hand, criticized Khan, labeling her as a “bully” and claiming that her leadership at the antitrust agency had been disastrous.

The Republicans attacked Khan, accusing her of mismanaging the agency, misleading Congress, pursuing politically motivated antitrust actions, and withholding information requested by the committee. Representative Jim Jordan (R-Ohio), Chairman of the committee, accused Khan of creating a system where she and her associates have unchecked power over business practices in the country.

In her defense, Khan emphasized the importance of the FTC’s mission to promote competition and its ambitious approach to enforcing antitrust laws. She stated that vigorous antitrust enforcement is essential for economic growth, shared prosperity, and liberty. Khan pointed out that the consolidation of markets and the reduction of competition have negative consequences for Americans.

Throughout the hearing, Democrats, who have generally supported the FTC’s efforts to block corporate mergers, stood by Khan. Representative Jerry Nadler (D-N.Y.), the ranking member, praised the FTC for its actions in returning over $430 million to consumers. He also warned Khan of the expected misleading attacks on her work from the Republican-led House Judiciary Committee.

The Republicans focused on Khan’s involvement in a case against Meta Platforms Inc., despite an internal ethics recommendation that she recuse herself. They accused her of providing misleading testimony to Congress in April 2023 regarding her decision to participate. Khan denied these allegations, clarifying that she had no financial stake in any company under investigation by the FTC.

Republicans, who have criticized Big Tech for alleged conservative censorship on their platforms, accused Khan of “harassing” Twitter during the hearing. In March, Twitter disclosed that the FTC was investigating the company’s data security and privacy practices. In response, the House Judiciary Committee subpoenaed Khan regarding the FTC’s investigation into Twitter and its CEO Elon Musk.

Khan argued that consolidation in the tech industry can harm consumers and contribute to the censorship concerns raised by Republicans. She stressed that the FTC is committed to protecting the American people from unlawful business practices. The Republicans also highlighted the recent legal losses suffered by the FTC, including a ruling allowing Microsoft’s acquisition of Activision Blizzard. The FTC announced their intention to appeal the ruling.

Despite the disagreements during the hearing, Liz Zelnick, Director of Economic Security and Corporate Power at the watchdog Accountable.US, commented that the hearing was unproductive. Committee Democrats praised the FTC’s actions to protect families from various issues, while the Republican majority focused on fringe matters that do not benefit families.

Prior to the hearing, the U.S. Chamber of Commerce demanded answers from Khan regarding the alleged “unprecedented regulatory blitz” on the U.S. economy under her leadership. The chamber’s senior vice president expressed concerns and suggested that if the agency’s course is not reversed, Congress may reduce the FTC’s budget. Representative Ben Cline (R-Va.) warned Khan about a potential 25 percent budget reduction by the House Appropriations Committee due to perceived partisanship.

The hearing witnessed tensions between Democrats and Republicans, with Representative Steve Cohen (D-Tenn.) instructing a Republican colleague to “shut up” after an interruption. Representative Darrell Issa (R-Calif.) took offense at comments suggesting that Khan’s ethnicity played a role in intense scrutiny of her work. However, Representative Matt Gaetz (R-Fla.) extended an olive branch, proposing collaboration between the FTC and Congress to strengthen laws against the sale of sensitive data by data brokers.

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