An influx of hard-line technology antitrust under the Biden government signals a new hardness in technology on the part of Democrats.
Why does it matter: Technology companies that grew up unrestricted by regulations during the Obama administration will now be under the scrutiny of defenders who have stood out for the giants’ size and power.
Lina Khan, well-known in antitrust circles for her ideas on how to prevent platforms like Amazon from competing directly with sellers, she is being assessed as nominated for a position as Democratic FTC commissioner, according to two sources familiar with the matter. The news was first released by Politico.
- Khan is a former public interest defender who worked at the FTC for former Democratic commissioner Rohit Chopra, and served as an adviser to the House Judiciary Committee during his year-long investigation of Big Tech firms.
- Khan represents a new school of antitrust thinking, in which company size, market dominance and the treatment of competitors are considered anti-competitive behaviors that regulators need to control – rather than judging monopoly power primarily by harming consumers.
Tim Wu, known for coining the term “net neutrality”, he was appointed special assistant to the president for technology and competition policy.
- His role at the White House will also include competition policy in other sectors, according to a New York Times report.
- Wu is a professor at Columbia University and author of “The Curse of Bigness” on the dangers of Big Tech’s growing power.
- He previously worked for the New York Attorney General and also held advisory positions at the FTC and the White House National Economic Council during the Obama administration.
Of importance: The Senate Judiciary Committee holds its confirmation hearing for civil rights lawyer Vanita Gupta, appointed as Associate Attorney General, on Tuesday.
- If confirmed, Gupta, who was Facebook critic, would oversee the antitrust and civil rights divisions in the Department of Justice. However, Biden has not yet appointed a leader for the antitrust division.
What are they saying: “The president has made it clear – in the campaign and probably more recently – that he opposes the abuse of power, and that includes the abuse of power by big tech companies and their executives, “said White House press secretary Jen Psaki . Last week.
Reality check: The roles that Khan and Wu will play in the government are not the final decision makers, so while they have an influence on shaping the debate, they will not have the last word on the results.
What to watch: Biden’s choice to lead the Justice Department’s antitrust division and permanent chairman of the FTC, which filed lawsuits against Google and Facebook last year, will further clarify the government’s position on antitrust enforcement.