Ohio Senator JD Vance recently commented that Federal Trade Commission (FTC) chair Lina Khan was “doing a pretty good job.” Senator Vance must not have heard about the House Judiciary Committee’s report detailing Khan’s mismanagement of the agency. Using subpoena documents and transcribed interviews with FTC staff, the report explores how Khan regularly ignores the advice of FTC’s professional staff.
One reason Khan may ignore the FTC’s staff is because it favors the consumer welfare standard, which judges a business’s actions based on how those actions affect consumers. Khan (and Vance) favor a holistic approach that considers the interests of all “stakeholders.” This holistic approach does not provide clear guidance for enforcers. Khan and her allies view this as a feature, not a bug, because it allows federal bureaucrats and lawyers to challenge any and all mergers and acquisitions, and force businesses to prioritize pleasing Khan above serving consumers. The open-ended nature of Khan’s approach may help explain why FTC members feel that Khan does not provide the staff with clear directions.
Read Full Article »
