FTC Chair Lina Khan Welcomes Companies Considering Antitrust Issues in Deals, Responds to Critics

By Jody Godoy and Lananh Nguyen

NEW YORK – U.S. Federal Trade Commission Chair Lina Khan recently expressed her approval that companies are now considering antitrust implications earlier in their merger discussions.

"When there is increased scrutiny of mergers, it can lead to greater deterrence against illegal mergers," Khan stated during an event with the Council on Foreign Relations in New York. She addressed the concerns about the sometimes adversarial reception she receives from Wall Street investors.

"As a law enforcer, I want individuals to contemplate whether their deals might infringe upon the law—that’s a positive sign," Khan remarked. She acknowledged that from a financial perspective, particularly concerning deal fees, her stance might be frustrating for some, evoking laughter from the audience.

Khan has faced criticism from segments of the business community who argue that the tight scrutiny from the FTC and the Department of Justice has led to a decline in the number of mergers. In July, a group of affluent Democratic donors urged Vice President Kamala Harris to consider Khan’s replacement should she run for president.

Furthermore, Khan emphasized the necessity for more empirical research to understand the impact of antitrust enforcement on venture capital.