In a panel discussion on Thursday, Federal Trade Commission Chair Lina Khan and Department of Justice assistant attorney general for the antitrust division Jonathan Kanter emphasized the importance of cracking down on federal antitrust enforcement.
These top federal antitrust enforcers have been active in bringing cases against proposed mergers as well as existing industry giants, including dominant tech companies.
In addition to these cases, Khan and Kanter have proposed updates to merger guidelines that would revamp the review process for acquisitions.
As the agencies take more action, there has been pushback and criticism suggesting that the Biden administration officials are overreaching and failing to effectively lead on antitrust enforcement.
Kanter argued that this narrative is not only unfair but also inaccurate.
Khan and Kanter made these remarks during an event hosted by the Brookings Institution. They were in conversation with Bill Baer, a visiting fellow at Brookings who previously held positions at FTC and DOJ.
Kanter, for example, highlighted the DOJ’s successful efforts in blocking Penguin Random House’s proposed $2.2 billion acquisition of Simon & Schuster. At the same time, the DOJ’s case against Google over alleged monopoly power in the search market is currently at trial, with Google disputing the allegations.
Kanter also mentioned that numerous transactions have been abandoned following the DOJ’s filing.
Khan expressed agreement with Kanter’s sentiment. She mentioned Lockheed Martin’s decision to terminate its $4.4 billion deal to buy Aerojet Rocketdyne Holdings after the FTC sued to block the merger.
Khan also highlighted that the FTC’s case against Meta, which was originally filed under the Trump administration and refiled under her leadership, will go to trial next summer.
According to Khan, the FTC has a very active antitrust enforcement program that has already achieved significant success.
A key aspect of Khan and Kanter’s approach to revitalizing antitrust enforcement is the proposed update to merger guidelines. These updates aim to modernize the approach and consider factors like the competition between “multi-sided platforms.”
Khan emphasized that there is no one-size-fits-all set of analytical tools for antitrust enforcement, as it depends on the specific market. The updated guidelines aim to provide enforcers with the flexibility to choose the appropriate tools based on the context.
The public comment period for the proposed updates closed last month.
Kanter stated that the Department of Justice is reviewing all the comments as quickly as possible. He also noted the encouraging level of public participation from workers, farmers, nurses, and small business owners in the process.
Kanter explained that writing the guidelines in an accessible manner was a deliberate choice to make antitrust enforcement more understandable for the broader public.
“The country is watching. The country cares about competition and a competitive economy because it affects so many aspects of our life and our democracy,” Kanter concluded.
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