Two Billionaire Harris Donors Hope She Will Dismiss FTC Chair Lina Khan, Reports Reuters

By Jody Godoy

Billionaire Democratic donors Barry Diller and Reid Hoffman recently expressed their hope that Kamala Harris will appoint a new chair for the Federal Trade Commission (FTC), potentially displacing Lina Khan, if she were to become President of the United States. This stance contradicts a significant aspect of President Joe Biden’s antitrust strategy.

Lina Khan has been a key figure in the Biden administration’s efforts to leverage U.S. antitrust laws to foster competition and tackle issues such as high prices and stagnant wages. She has gained notoriety for her management of the FTC’s prohibition on noncompete agreements, drawing criticism from corporate lobbyists while attracting support from some unlikely corners, including JD Vance, a prominent Republican.

During recent interviews, both Diller and Hoffman voiced their disapproval of Khan’s tenure at the FTC, indicating that she should not have a role in a possible Harris administration. Diller, who leads the travel company Expedia, indicated in a Bloomberg interview that he would contribute the maximum permitted amount to Harris’ campaign and advocate for her to replace Khan, whom he believes is too antagonistic toward business interests.

Although the FTC under Khan has developed a reputation for scrutinizing mergers, it only reviews about 2% of annual deals and blocks even fewer. In cases where the agency has taken legal action to block mergers, such as the proposed Kroger and Albertsons deal, it has focused on the implications for both consumers and workers.

An FTC spokesperson defended Khan, stating that her role in the administration has been to protect consumers, workers, and entrepreneurs from illegal practices and corporate misconduct.

Hoffman’s remarks echoed those of Diller, as he stated during a CNN interview that he believed Khan was not serving the interests of America. Hoffman has been a significant financial backer of Democratic causes, contributing $7 million to a super PAC that supports various candidates.

Hoffman, who is also on the board of Microsoft, was involved in the company’s controversial acquisition of LinkedIn for over $26 billion in 2016. The FTC has challenged Microsoft’s recent move to acquire Activision Blizzard.

Support for Khan remains strong among several Democratic senators, including Bernie Sanders and Elizabeth Warren. Warren recently advocated for Khan to continue her work, asserting that her efforts have significantly contributed to a robust economy, as demonstrated by encouraging GDP growth figures.