Podcast Summary: "How Lina Khan Became Antitrust Critics' Favorite Target"

Podcast: On the Media
Host: Brooke Gladstone and Micah Loewinger
Episode Release Date: March 8, 2023
Duration: Approximately 26 minutes

Introduction

The episode delves into the rise of Lina Khan, her role as Chairperson of the Federal Trade Commission (FTC), and the mounting opposition she faces from various political and business factions. The discussion highlights the shifting landscape of antitrust enforcement in the United States and the personal and political battles surrounding Khan's tenure.

Lina Khan’s Rise to Prominence

Lina Khan gained significant attention through her influential academic work, notably the article "Amazon's Antitrust Paradox," which called for breaking up Amazon and rethinking antitrust laws to address the dominance of Big Tech.

• Michael Olinger (01:40): "Lina Khan rose to prominence in a really unorthodox way... she laid out the case for breaking up Amazon."

Khan's nomination by President Joe Biden was seen as a strategic move to strengthen antitrust enforcement, appealing to progressives seeking robust regulation of major corporations.

• Ira Flato (02:50): "President Joe Biden brought Lina Khan as an olive branch to progressives who really wanted to see reinvigorated antitrust enforcement."

Bipartisan Optimism and Subsequent Backlash

Initially, Khan's appointment garnered bipartisan support, including from some Republicans like Ted Cruz. However, over time, Republicans within the FTC and broader political arena have pushed back, viewing Khan’s agenda as too radical.

• Ira Flato (06:59): "It's not just about an agency overstepping its authority. It's also about this woman in particular and how her leadership at the agency is polarizing."

The backlash has intensified, with Khan being targeted in numerous op-eds and editorials, particularly in conservative outlets like The Wall Street Journal.

• Michael Olinger (06:50): "Khan has been mentioned in 43 op-eds, editorials and letters to the editor in the Wall Street Journal since 2021."

Personalized Attacks and Partisan Divide

Critics have personalized attacks against Khan, framing her as a symbol of government overreach and aligning these sentiments with broader conservative frustrations towards progressive female leaders.

• Ira Flato (09:33): "Jonathan Kantor is a much more rigorous thinker than Lina Khan... whereas Lina Khan is more of a quote-unquote, outsider."

This personalized critique mirrors the treatment of other progressive women like Elizabeth Warren and Alexandria Ocasio-Cortez, blending political opposition with gendered and ageist undertones.

• Ira Flato (10:27): "There is so much anger at her as a young woman in power."

FTC’s Antitrust Actions Under Khan

Under Khan's leadership, the FTC has pursued aggressive antitrust measures, including attempts to ban non-compete agreements and scrutinize major tech mergers.

• Ira Flato (12:08): "Lina Khan and her allies are trying to envision something much broader than just the consumer welfare standard."

One significant move was the FTC's attempt to block Meta Platforms' acquisition of Within, citing potential future anti-competitive practices in emerging markets like AI and virtual reality.

• Michael Olinger (16:53): "Trying to cut off these kinds of anti-competitive practices that have made the tech companies so big."

However, these efforts have faced legal challenges and setbacks, illustrating the contentious nature of Khan’s policies.

• Ira Flato (24:37): "Her most ambitious agenda items have not really gotten off the ground yet. So right now, a lot of the rulemaking... we don't actually even know what those are going to look like."

Regulatory Pushbacks and Political Opposition

Business groups and conservative think tanks, often funded by major corporations like Google and Amazon, have launched TV ad campaigns attacking Khan personally, portraying her as overreaching.

• Ira Flato (10:50): "It's very clear she's become a useful foil and punching bag for those free market pro-business types."

This opposition is part of a broader strategy to undermine Khan's authority and the FTC's expanded role in regulating Big Tech.

• Ira Flato (20:59): "Big government, but not your big government."

Impact on Other Sectors: The Insulin Price Cap

Beyond tech, the FTC under Khan has influenced significant policy changes in other industries, such as the pharmaceutical sector. Eli Lilly's decision to cap insulin costs at $35 a month was partly influenced by FTC inquiries into pharmaceutical middlemen.

• Michael Olinger (21:23): "The FTC announced last year that it was launching an inquiry into the prescription drug middleman industry."

This move demonstrates the FTC's broader agenda to tackle monopolistic practices and price gouging across various sectors, aligning with progressive goals to protect consumers.

• Ira Flato (23:46): "I think that it's one of a couple of government inquiries that really mattered."

Future Prospects and Conclusion

While Khan's tenure has seen both significant challenges and notable successes, it is still early to fully assess her impact. Progressives view her leadership as a critical step in revitalizing antitrust enforcement, despite current setbacks and ongoing opposition.

• Ira Flato (24:37): "The agency that was once very sleepy is definitely awake now, and that is a win in itself."

Khan's efforts are reshaping the regulatory landscape, pushing debates beyond traditional consumer welfare metrics to address modern challenges posed by Big Tech.

• Ira Flato (26:12): "Even if they're facing this wall of corporate lobbying, they are shifting norms and the Overton window around what we imagine the FTC can do."

Notable Quotes

• Ira Flato (03:58): "She is the youngest ever chairwoman of the agency... was almost an olive branch by President Joe Biden to progressives."

• Ira Flato (07:56): "Christine Wilson... 'I really disagree with how Lina Khan and her allies are leading the agency, how they're breaking with norms, how they're bucking the establishment.'"

• Ira Flato (12:08): "The consumer welfare standard... is a break with a couple of decades of precedent."

• Ira Flato (18:13): "This is the FTC trying to do one of the missions it's actually tasked with, which is protecting user privacy."

Conclusion

The episode provides a comprehensive exploration of Lina Khan's role at the FTC, highlighting both her ambitious agenda to reinvigorate antitrust enforcement and the intense opposition she faces. It underscores the broader implications of her leadership for regulatory policies and the ongoing political battles over the direction of antitrust law in the United States.

Listeners interested in the intersections of media, politics, and regulation will find this episode insightful in understanding the complexities surrounding modern antitrust debates and the influential figures driving them.