Tech News

FTC Chair Lina Khan says the agency is going after the ‘mob bosses’ in Big Tech

Published

7 months ago

June 12, 2024

FTC Chair Lina Khan spoke at DailyTech’s Strictly VC event in Washington, D.C., emphasizing the agency’s focus on targeting Big Tech companies for their harmful practices.

Khan highlighted the importance of going after major players who drive illegal behaviors, rather than just increasing the number of cases. She compared it to targeting the ‘mob boss’ instead of the henchmen.

Recent reports suggest that the FTC is investigating Microsoft, Open AI, and Nvidia for potential antitrust violations. The agency has previously taken action against Meta, Amazon, Google, Apple, and others.

Khan emphasized the FTC’s commitment to an effective enforcement strategy by taking on lawsuits against large companies. She believes that successful enforcement can positively impact the marketplace.

The FTC’s selection of cases serves as a deterrent, with companies now considering antitrust risks in their deals. Khan highlighted the importance of promoting competition to benefit startups looking for acquisitions.

Startup founders and VCs were reminded by Khan that the law prohibits acquisitions that strengthen a monopoly or pose a competitive threat. She mentioned that only a small percentage of merger filings receive a closer look from the FTC.

Promoting competition at the acquisition level can provide startups with more opportunities and better valuations, according to Khan.