The White House announced on Monday that Lina Khan, the well-known technician who made a settlement among the enforcers through the investigation into the antitrust case against Amazon, has decided.
If confirmed, Khan would vote at the FTC on important antitrust and consumer protection issues. This could include a decision on whether to file an antitrust lawsuit against Amazon, which is allegedly under investigation, or to block acquisitions by large companies.
The choice has been widely praised by progressives who see Khan as the kind of enforcer who can enchant technological giants who, according to lawmakers, abuse their power on both sides of the aisle. It builds on Biden’s decision to appoint another prominent lawyer, Tim Wu, to work with the National Economic Council on technology and competition policy.
Khan is widely praised in progressive circles for her scholarship on antitrust, which has focused especially on technology ventures. As a law student at Yale University in 2017, she wrote a viral note titled ‘Amazon’s Antitrust Paradox’, which challenged the consumer welfare approach that has dominated the monitoring application for years. Recently, she taught antitrust law at Columbia University.
In her 2017 note, Khan argues that a more comprehensive interpretation of the antitrust laws should be used to properly evaluate a digital platform such as Amazon, which can act as a gatekeeper of a market. She wrote that platforms, for example, could use a practice of predatory pricing, which would apparently benefit consumers by lowering prices, but could in fact cut out legitimate competitors who could innovate further.
She also played a key role in drafting the solid report outlining the alleged competitive behavior of Amazon, Apple, Facebook and Google while working for the House Antitrust Subcommittee. Khan worked primarily on the Google section of the report. The Democratic proposal offers comprehensive reforms to the antitrust laws that make it difficult for tech giants to buy smaller companies, among other proposals.
While lawmakers on both sides of the aisle have campaigned for the strong enforcement of antitrust laws against technology companies, Khan’s nomination could still come to naught. Senator Mike Lee, R-Utah, criticized Khan’s youth and experience in a statement after Politico reported on her choice earlier this month.
“Ms Khan undoubtedly has a promising career ahead of her, but because she has been out of real school for less than four years, she does not need the experience for such an important role as FTC commissioner,” Lee said. “Her views on antitrust enforcement are also out of step with a cautious approach to the law. The appointment of Ms Khan would indicate that President Biden intends to propose ideology and politics over capable antitrust enforcement, which would be very disappointing. be at a time when it is absolutely critical that we have strong and effective leadership at the enforcement agencies. This moment is too important for our antitrust enforcers to learn. “
Still, Sen. Roger Wicker, R-Miss., Said he would “keep an open mind” about the nomination. Wicker is the top Republican on the Senate Commerce Committee, addressing issues such as digital privacy and FTC nominees.
“I know other senators have expressed initial concern,” Wicker said in a statement following the nomination announcement. “However, I will keep an open mind until I have a detailed conversation with Ms Khan. If we can see face – to – face how we can undermine the great censorship of Big Tech, then she may have got her biggest champion . ‘
If confirmed, Khan will join Democratic and Acting Commissioner Rebecca Kelly Slaughter and Republican Commissioners Noah Phillips and Christine Wilson. That would put Biden with another commissioner to fill in to complete the panel of five agencies, after appointing current Democratic Commissioner Rohit Chopra to head the Bureau of Financial Consumer Protection.
Sarah Miller, executive director of the anti-monopoly group the American Economic Liberties Project, calls Khan an extraordinary choice for the Federal Trade Commission. ‘
But, she adds, Biden must continue to appoint strong antitrust enforcers at the FTC and the Department of Justice’s Antitrust Division.
Khan will also be tasked with weighing in on consumer protection issues tackled by the FTC. In recent years, such cases have included the FTC’s $ 5 billion settlement with Facebook over its privacy policy and a $ 170 million fine against YouTube for allegedly violating the protection of privacy for children.
Subscribe to CNBC on YouTube.
LOOK: How US antitrust law works, and what it means for Big Tech