The chair of the Federal Trade Commission (FTC), Lina Khan, defended her aggressive legal strategy towards major technology companies during a hearing where House Republicans accused the agency of becoming overzealous and politicized under President Joe Biden. Republican representatives argued that Khan was “harassing” Twitter since its acquisition by Elon Musk, engaging in arbitrary lawsuits against large tech companies, and refusing to recuse herself from certain cases. The committee had previously subpoenaed Khan following an investigation that claimed the agency pursued Musk for political reasons.
Khan countered these criticisms by stating that increased regulation is necessary due to the growth of these companies and the potential harm that tech conglomeration could have on the economy and consumers. She emphasized that vigorous antitrust enforcement is crucial to promoting economic growth, prosperity, and liberty. Khan refuted the notion of targeting specific companies for political reasons and highlighted the negative consequences of market consolidation and decreased competition.
The hearing took place amidst the FTC’s involvement in multiple legal cases against technology companies and Khan’s efforts to strengthen government regulation and prevent further growth of these companies. However, the agency recently suffered a setback when a federal judge rejected their attempt to block Microsoft’s $69 billion takeover of Activision Blizzard. The FTC claimed that the deal would harm competition, but the judge deemed that the agency failed to demonstrate significant harm. The FTC plans to appeal this decision.
Another case in which the FTC attempted to prevent Meta from acquiring Within Unlimited also resulted in a judge’s rejection. Republicans raised concerns about the FTC’s track record in antitrust cases, questioning the agency’s effectiveness. Khan denied intentional losses but acknowledged that not all outcomes were favorable.
Republicans also criticized the FTC’s aggressive regulation and expressed concerns about its impact on small businesses. Rep. Darrell Issa criticized the agency’s apparent shift in focus since Khan’s appointment, highlighting the importance of considering the global market in regulatory decisions.
In addition to these concerns, the FTC filed a lawsuit against Amazon last month, accusing the company of enrolling consumers into Amazon Prime without consent and using deceptive tactics to prevent them from canceling their subscriptions. Khan and other FTC officials have also emphasized their intention to address harmful practices associated with artificial intelligence.
The FTC’s actions regarding Twitter were a significant point of contention among Republicans. The agency has been investigating the company’s privacy and cybersecurity practices, and the probe extended to obtaining internal communications from Musk and information about journalists. House Judiciary Committee Chairman Jim Jordan accused Khan of “harassing” Twitter, questioning the agency’s motives. Khan justified the investigation by citing Twitter’s security and privacy concerns, which have been under scrutiny since before Musk’s involvement.
Republicans also criticized Khan for her lack of recusal in the Meta case. The company had requested her recusal due to her past advocacy against Facebook’s mergers. Khan stated that there was no ethical violation and emphasized that she had no financial ties to Meta.
Although Democrats defended Khan’s work, House Republicans launched baseless personal attacks. Khan, a legal scholar and tech critic, was nominated by the Biden administration to signal its tough stance on technology companies. Her expertise and experience, including serving as a counsel to the Judiciary Committee’s antitrust subcommittee, have informed her approach to addressing the market power of tech giants.
In a separate context, Jordan’s House Judiciary panel has also investigated alleged censorship of conservatives by tech companies. The committee had subpoenaed the chief executives of major tech companies to investigate their content moderation practices.
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