Lina Khan interrogated by GOP over Big Tech regulation
FTC Chair Defends Aggressive Legal Strategy Against Tech Giants as House Republicans Criticize Agency Under Biden
The Federal Trade Commission (FTC) Chair, Lina Khan, defended the agency’s aggressive legal strategy towards the country’s biggest technology companies in the face of criticism from House Republicans. Khan has been accused of “harassing” Twitter since its acquisition by Elon Musk, filing arbitrary lawsuits against large tech firms, and failing to recuse herself from certain cases. In response to these allegations, the committee subpoenaed Khan after an investigation concluded that the agency targeted Musk for political reasons.
Khan refuted these claims, stating that increased regulation is necessary as these companies have grown, and that tech consolidation could have a negative impact on the economy and consumers. She emphasized that a robust enforcement of antitrust laws is essential for the growth and dynamism of the economy, as well as shared prosperity and liberty. Republicans, however, questioned the wisdom of aggressive regulation and raised concerns about potential harm to small businesses.
The hearing took place amidst several ongoing legal cases against technology companies and Khan’s efforts to toughen government regulation and prevent further growth of these companies. Earlier this week, the FTC suffered a major defeat when a federal judge declined to block Microsoft’s $69 billion takeover of video game company Activision Blizzard. The FTC had sought to stop the deal, citing concerns about competition. The judge ruled that although the deal deserved scrutiny, the FTC had not demonstrated that it would cause significant harm.
Another judge previously rejected the FTC’s attempt to prevent Meta (formerly Facebook) from acquiring virtual reality fitness company Within Unlimited, further highlighting the agency’s poor legal record in antitrust cases. Republicans questioned whether the agency was intentionally losing these cases, referring to a previous comment from Khan suggesting that courtroom losses would prompt Congress to update antitrust laws. Khan denied intentionally losing but acknowledged that victories are not always guaranteed.
The FTC has also sued Amazon for alleged deceptive practices, including enrolling consumers without consent into Amazon Prime and making it difficult for them to cancel their subscriptions. Khan and other FTC officials have also expressed concerns about harmful business practices involving artificial intelligence.
The focus of much of the Republicans’ criticism has been the FTC’s actions towards Twitter. The agency has been investigating the social media platform’s privacy and cybersecurity practices, which intensified following Musk’s acquisition and mass layoffs at the company. Republicans raised concerns about the agency’s alleged bias and harassment of Twitter.
Khan, however, stated that the agency’s focus on Twitter’s lax security and privacy policies predates Musk’s tenure. The FTC has been monitoring the company since 2011 based on consent orders related to data security lapses. Twitter, now under parent company X Corp., has filed a request with a federal court to end the consent order, claiming bias and a spiraling investigation.
Republicans also criticized Khan for not recusing herself from the Meta case, as the company had requested her recusal due to her past advocacy against Facebook’s mergers. Khan denied violating ethics laws and stated that she had no financial relationships with the company.
Democrats defended Khan’s work, with New York Rep. Jerry Nadler applauding her mission and urging Republicans to put aside baseless attacks. Khan, a legal scholar, was a vocal critic of Big Tech before taking over as FTC Chair in 2021. Her appointment signaled the Biden administration’s intention to take a tough stance on technology companies amid increased scrutiny from regulators and state attorneys general.
Khan’s nomination was based on her influential scholarly work, “Amazon’s Antitrust Paradox,” which proposed a new perspective on antitrust law beyond the impact on consumer prices. She also served as counsel to the Judiciary Committee’s antitrust subcommittee, playing a key role in a bipartisan investigation into the market power of tech giants.
The House Judiciary Committee, led by Republican Jim Jordan, has also targeted tech companies, accusing them of censoring conservatives. The committee subpoenaed the CEOs of the five largest tech companies earlier this year to investigate their content moderation practices.
FAQs:
1. What is Lina Khan being criticized for?
Lina Khan, Chair of the FTC, is being criticized for her allegedly aggressive and biased legal strategy towards the country’s biggest technology companies, including Twitter, Amazon, and Meta (formerly Facebook). Republicans have accused her of “harassing” Twitter, filing arbitrary lawsuits, and failing to recuse herself from certain cases.
2. Why does Lina Khan argue for increased regulation of tech companies?
Khan argues that increased regulation is necessary as tech companies have grown and consolidated, which could harm the economy and consumers. She believes that vigorous enforcement of antitrust laws is crucial for economic growth, dynamism, and shared prosperity.
3. What recent defeats has the FTC faced?
The FTC suffered a major defeat when a federal judge declined to block Microsoft’s $69 billion takeover of video game company Activision Blizzard. The FTC had sought to stop the deal on grounds of competition concerns. Another judge also rejected the FTC’s attempt to prevent Meta from acquiring virtual reality fitness company Within Unlimited.
4. What is the focus of criticism towards the FTC’s actions?
Much of the criticism has been directed at the FTC’s actions towards Twitter, specifically its investigations into the company’s privacy and cybersecurity practices. Republicans have raised concerns about alleged bias and harassment, while the agency emphasizes lax security and privacy policies and ongoing oversight since 2011.
5. What is Lina Khan’s background?
Lina Khan, a legal scholar, was a known critic of Big Tech before becoming the Chair of the FTC in 2021. Her appointment signaled the Biden administration’s commitment to toughen regulations on technology companies. She gained recognition for her scholarly work, “Amazon’s Antitrust Paradox,” and served as counsel to the Judiciary Committee’s antitrust subcommittee during a bipartisan investigation into tech giants’ market power.
GOP interrogates Lina Khan on Big Tech regulation
The chair of the Federal Trade Commission (FTC), Lina Khan, defended her aggressive legal strategy toward the country’s biggest technology companies during a House hearing on Thursday. House Republicans accused Khan of being overzealous and politicized under President Joe Biden. They specifically criticized her treatment of Twitter, her arbitrary lawsuits against large tech companies, and her refusal to recuse herself from certain cases. In response, Khan argued that increased regulation is necessary to address the growth and potential harm caused by tech conglomerates.
During the hearing, Khan faced scrutiny over the FTC’s recent legal cases against technology companies. A federal judge recently declined to block Microsoft’s $69 billion takeover of video game company Activision Blizzard, a decision that was seen as a major defeat for Khan and the FTC. The agency is now appealing the ruling. Another case involving Meta’s acquisition of the virtual reality fitness company Within Unlimited also went against the FTC earlier this year.
Republicans questioned the wisdom of an aggressive regulatory approach and expressed concerns about potential negative impacts on small businesses. They criticized Khan’s track record of courtroom losses and accused her of pursuing regulations as a means to signal to Congress that antitrust laws need to be updated. However, Khan denied intentionally losing cases and acknowledged that not all outcomes have been favorable.
The focus of the hearing also extended to the FTC’s actions against Twitter, particularly its investigation into the social media company’s privacy and cybersecurity practices. Republicans accused Khan of obsessively targeting Twitter and raised concerns about the agency’s efforts to obtain Elon Musk’s internal communications and information about journalists. Khan defended the agency’s focus on Twitter, citing long-standing concerns about the platform’s security and privacy policies.
Additionally, the FTC has sued Amazon for allegedly enrolling consumers into Amazon Prime without consent and making it difficult for them to cancel their subscriptions. The agency accused Amazon of using deceptive designs known as “dark patterns” to mislead consumers. Khan has also emphasized the FTC’s commitment to cracking down on harmful business practices related to artificial intelligence, particularly in regards to widely-used AI tools.
Overall, while Republicans criticized Khan’s approach to regulating technology companies and questioned the agency’s legal record, Democrats defended her work. Khan, a legal scholar and known tech critic, was nominated by President Biden in 2021 and her appointment signaled a tough stance on technology companies from the administration. She has previous experience with the House Judiciary Committee, having served as a counsel to the panel’s antitrust subcommittee during a bipartisan investigation into the market power of tech giants.