FTC Chair Lina Khan Welcomes Companies Weighing Antitrust Into Deals, Addresses Critics By Reuters

By Jody Godoy and Lananh Nguyen

NEW YORK (Reuters) – U.S. Federal Trade Commission Chairman Lina Khan on Friday welcomed the fact that companies are weighing antitrust considerations early in their deal-making process.

“When you see greater scrutiny of mergers, you can see greater deterrence of illegal mergers,” Khan told the Council on Foreign Relations in New York. Khan was responding to a question about the hostility he sometimes evokes from Wall Street investors.

“As a law enforcement officer, I want people to think about whether their business is going to break the law or not, so this is progress,” she said. “If you look at it in terms of transaction fees and things like that, I can understand why it might be troublesome,” she said, drawing laughter from the audience.

Khan has drawn criticism from some in the business community who argue that FTC and Justice Department scrutiny of pending deals has dried up the merger pipeline. In July, a pair of wealthy Democratic donors called on Vice President Kamala Harris to replace Khan if Harris is elected president.

More empirical study is needed on how antitrust enforcement affects venture capital, Khan said.