Lina Khan’s Vision for Broadening Antitrust Laws and Challenging Big Tech

Lina Khan, the chair of the Federal Trade Commission (FTC), is leading a landmark antitrust lawsuit against Amazon, which she describes as a “cutting-edge” case that captures the state-of-the-art thinking about modern monopolies in the tech industry. This lawsuit not only poses a significant regulatory challenge for Amazon but also represents the culmination of Khan’s years-long effort to challenge the conventional wisdom about competition protection, particularly in the tech sector.

If successful, the Amazon lawsuit could result in significant changes to the company’s e-commerce business. More importantly, it could be a crucial step towards Khan’s larger goal of expanding the scope of antitrust law and encouraging regulators and courts to apply it more creatively in shaping the global economy.

However, Khan’s efforts to rein in Big Tech go beyond the Amazon suit. She has also targeted other industry giants such as Microsoft and Meta, formerly known as Facebook. Taking on these powerful and deep-pocketed corporations is a bold gamble that requires substantial taxpayer dollars and the dedication of small teams of government lawyers.

The motivation behind Khan’s pursuit of these cases is to bring more of the government’s resources to address the economic challenges faced by ordinary Americans. She aims to ensure that the decisions made by the FTC on antitrust and consumer protection have a positive impact on people’s day-to-day lives.

While Khan’s push for broader antitrust enforcement is commendable, she faces determined opponents in business and law, as well as a mixed record in court. Critics argue that her aggressive approach may be misguided and that her tenure at the FTC may come to an end when her term expires next September or if a new administration seeks to replace her.

Nevertheless, Khan has already made a significant impact at the agency by initiating numerous investigations, lawsuits, and regulatory proposals. Although many of these cases are far from being resolved, they have sparked a global debate about the power of technology companies and the role of governments in regulating them.

Khan’s journey in challenging established antitrust principles began with her early mentor, Barry Lynn, who hired her to research Amazon’s impact on authors and book publishing. This research became the foundation of her career and led to a viral article in 2017, in which she explored Amazon’s economic dominance.

Her critical view of the status quo emerged even in her early writings, where she questioned the government’s reluctance to sue meat processors for fear of damaging court losses. Khan’s appetite for litigation has persisted, driven by her powerful sense of justice and a determination to bring about change.

Khan’s approach challenges the traditional focus on consumer prices in antitrust law. She argues that companies can harm competition in less obvious ways, impacting labor markets, product quality, and consumer privacy. Her ideas have disrupted the prevailing orthodoxy of antitrust law and have spurred new academic research on the topic.

Recognizing her valuable insights, Rhode Island Democratic Rep. David Cicilline recruited Khan to help investigate Big Tech. Their joint efforts led to a report that concluded tech giants possessed unchecked “monopoly power,” paving the way for legislative proposals. Although not all the proposed laws were enacted, Khan’s involvement elevated her profile and eventually led to her appointment as an FTC commissioner.

Since taking office, Khan has been instrumental in scaling up antitrust and consumer protection enforcement. Under her leadership, the FTC has sued Amazon for various alleged violations, convinced the company to settle million-dollar privacy disputes, and continued the lawsuit against Facebook-parent Meta. Additionally, she has brought Microsoft back into the antitrust spotlight by opposing its acquisition of Activision Blizzard.

Khan’s tenure at the FTC has resulted in an increased number of investigations and lawsuits against proposed mergers. The agency’s enforcement efforts have led to settlements, abandoned deals, and notable wins in court. This includes the case against Within Unlimited, where the FTC has conceded in court proceedings.

While Khan faces considerable challenges in her pursuit of broader antitrust enforcement, her vision for reshaping monopoly laws has already made a lasting impact. She has ignited a global conversation about the power of technology companies and the need for government intervention to protect competition and consumers.