Big Tech critic Lina Khan to lead US competition regulator
US president Joe Biden has tapped Lina Khan, a prominent critic of the power of large technology companies, to chair the Federal Trade Commission, according to a person familiar with the matter.
The decision elevates the 32-year-old Columbia University Law School professor to a powerful antitrust role in the Biden administration, as lawmakers in Congress vow to crack down on anti-competitive behaviour among the largest US technology groups.
Khan’s appointment as chair of the FTC emerged on the same day she was confirmed by the US Senate for a seat on the five-member commission.
“Congress created the FTC to safeguard fair competition and protect consumers, workers, and honest businesses from unfair & deceptive practices. I look forward to upholding this mission with vigor and serving the American public,” she wrote in a tweet on Tuesday.
Khan is one of the most renowned American scholars to criticise large US technology companies, from Amazon to Facebook and Google, for abusing their market power, and has demanded government action to restrain them.
Khan’s 2017 paper, “Amazon’s Antitrust Paradox”, took aim at the corporation’s growing power, particularly its role as both logistics provider and competitor to the millions of smaller businesses that use Amazon to sell goods.
It concluded that prevailing thinking on antitrust — that lower prices are net good for consumers — was outdated and did not take into account conflicting forces in the modern economy.
Amazon did not immediately respond to a request for comment on Khan’s appointment. The company has maintained it faces competition in all of the sectors in which it operates, suggesting it represents a small percentage of overall retail.
Khan also served as counsel to the House judiciary committee during its antitrust investigation into big tech companies. The committee’s 449-page report, published last year, criticised big US tech groups and advised Congress to introduce legislation that would, among other measures, make it more difficult for the large companies to acquire up-and-coming challengers.
Biden’s decision to tap Khan to chair the FTC — which will make her one of the youngest-ever heads of a federal agency — sends a signal of his administration’s intent to take a more aggressive stance towards Big Tech. The US president also recently selected Tim Wu, another prominent critic of Silicon Valley at Columbia Law School, to be a special White House adviser on competition policy.
Public Citizen, a consumer advocacy non-profit, applauded Biden’s move to deal with “runaway corporate power”.
“As a commissioner, Khan will take on corporate barons in Silicon Valley and throughout our economy,” said Alex Harman, competition policy advocate for Public Citizen, in an emailed statement.
“Greedy and abusive corporations should be on notice that the FTC will no longer look the other way as they amass power to hurt consumers, treat competitors unfairly, and take advantage of workers.”
Elizabeth Warren, a Democratic senator from Massachusetts who has called for a break-up of Big Tech groups, cheered the appointment.
“The Biden administration’s designation of @linamkhan as Chair of the Federal Trade Commission is tremendous news. Lina brings deep knowledge and expertise to this role and will be a fearless champion for consumers,” Warren tweeted.
As markets closed on Tuesday, the share prices of Amazon, Facebook, Alphabet and Apple were mostly unchanged by the news.
Facebook declined to comment on Khan’s appointment. Alphabet and Apple did not immediately return requests for comment.
Daily newsletter
#techFT brings you news, comment and analysis on the big companies, technologies and issues shaping this fastest moving of sectors from specialists based around the world. Click here to get #techFT in your inbox.