House panel rips FTC Chair Lina Khan, says agency has become ‘political tool’

The House Oversight Committee calls out Federal Trade Commission Chairman Lina Khan to be replaced, accusing her of infusing the powerful organization with a “left-wing ideology” and allowing it to be used as a “political tool” for Democrats as the 2024 presidential election comes to a head.

The GOP-led panel criticized the 35-year-old US regulator – who in 2021 became the youngest FTC chairman in the agency’s history – for overseeing a “major destruction of the agency’s standards”, while warning for reinstating her tenure in devastating fashion. 59-page report on Thursday.

In addition to concerns about unfair merger oversight, which has punished U.S. companies and instead helped carry out the wishes of EU regulators, Republicans on the Oversight Committee said Khan has allowed the agency to engage in partisan politics on behalf of the Democrats.

As an example, they pointed to a so-called “Strike Force on Unfair and Illegal Pricing” formed at the FTC, which they said amounted to shifting blame for inflation.

“Rather than examine its own role in contributing to inflation, the White House has often used a compliant FTC to shift blame for historic inflation onto the administration’s favorite scapegoat: American corporations,” he said. the report.

Republicans have also criticized Khan for appearing at events with prominent Democrats in recent weeks – so close to the election.

“Rather than fulfilling its obligation to ensure that the FTC adheres to its independent role, our investigation shows that Chairman Lina Khan abused her power and bent the knee to the Biden-Harris White House,” Chairman James Comer (R-Ky.) told The Na.

“It is now clear that Chairman Khan will stop at nothing to achieve the radical left’s desired goals. If this behavior continues, it will further undermine Americans’ confidence in the role of the FTC.”

Khan’s tough approach to big business has made her a progressive darling, with key supporters in Congress, including Sens. Elisabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.). Representative Alexandria Ocasio-Cortez (D-NY) warned of an “out and out brawl” if Kamala Harris wants to dump her if she wins the White House.

But her tenure has roiled Wall Street donors with deep pockets in the Democratic Party — including LinkedIn founder Reed Hoffman — and prompted some to urge Vice President Kamala Harris to reappoint Khan as chairman of the FTC, should it emerge victorious in the November 5 election. .

Until now, Harris, 60, has been coy about whether she would keep Khan.

“Chairman Khan’s term expired last month and she should not be allowed to continue leading an independent agency,” Comer, 52, added.

Deter ‘all mergers’

A key factor in Khan’s appeal among progressives is her opposition to a slew of corporate mergers, while Republicans on the panel have faulted her for being too restrictive on deals.

The report ignored the legal setbacks the FTC faced as it worked to block mergers involving tech giants like Meta and Microsoft, arguing that under its watch the FTC “put sand in the gears of every phase of threw the merger review and approval process. ”

An estimate cited in the report shows that the administrative burden imposed by the FTC in the Hart-Scott-Rodino review process would “increase nearly fourfold.”

“Chairman Khan has abdicated the Commission’s responsibility to protect Americans from anti-competitive mergers while allowing pro-competitive – and therefore pro-consumer – mergers to proceed,” the Oversight report said.

“Instead, Chairman Khan has pushed the Commission to use seemingly every possible lever at any time to discourage all mergers of any kind, to the detriment of consumers.”

FTC cozy with EU regulators

The Oversight Committee also drew attention to the FTC’s cooperation with European entities on issues such as the EU Digital Market Act, which has tightened the screws on tech giants, including American ones.

“Under Chairman Khan, the Commission appears to be working to ensure that US companies implement burdensome European Union (EU) regulations that are not required under US law,” the report said.

It noted that European regulators have been dealing with U.S. companies on several fronts, such as moderating content on social media, and warned that some rules have been “detrimental to U.S. tech companies.”

At one point, the Oversight Committee quoted an email from Maria Coppola, the director of the Office of International Affairs, who congratulated her European counterparts on the passage of the Digital Market Act.

‘Exodus’ at the FTC

The report alleged that morale at the FTC has plummeted under Khan’s watch and cites a study showing that the FTC used to rank second on the list of “Best Places to Work in the Federal Government” but moved to 22nd in 2022 decreased.

Khan had introduced a kind of ‘gag order’ that prevented staff from taking certain forms of ‘consumer and business education’.

Some staffers also grumbled that they had far less face time with Khan than with previous FTC chairmen, the report said.

The report mentioned Trump-appointed FTC Commissioner Christine Wilson protest against resignation in 2023 over what she described as a “disregard for the rule of law and due process” at the agency.

The Post contacted the FTC for comment.

Despite the complaints about Khan in the business community, some Republicans like Sen. Josh Hawley (R-Mo.) and GOP vice-presidential hopeful Sen. J.D. Vance (R-Ohio) are have praised some of her work.