Federal Trade Commission Chairwoman Lina Khan In an interview aired on Sunday, the minister defended the agency's role in policing mergers and acquisitions, saying companies were causing inflation.
Khan was interviewed by Lesley Stahl on CBS News' “60 Minutes” at a town hall hosted by Khan and Rep. Alexandria Ocasio-Cortez (D-NY). The FTC chairman said, “Too often, we see fewer and fewer companies controlling more and more markets. That means companies can start taking money from you, inflating prices, stealing from you.”
“The pandemic and the war have certainly caused price increases. What's interesting is that even though supply chain pressures have eased somewhat, prices haven't come down much at the same time,” Khan said in an interview with Staal about the causes of inflation. “There's a lot of debate about what's driving inflation, and in fact, I've seen some executives bragging on earnings calls that inflation is a big contributor to profits.”
Khan also suggested Mergers and Acquisitions, Companies under the FTC's regulatory oversight must remain competitive in the marketplace, even if efficiency gains mean lower prices for consumers.
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“Even if there are efficiencies realized, if they are not checked by competitors, the company will have no incentive to pass them. Benefiting consumers Because those consumers may not have anywhere else to go,” Khan said.
Staal said the F.T.C. Supervision and investigation Merger proposals can sometimes have a chilling effect, causing companies to abandon the deal.
“You know, sometimes companies decide to abandon a merger,” Khan said. Staal asked if abandoning a merger under FTC oversight would be a victory, to which Khan replied, “Yes, it is.”
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“It's important to take a step back and put all of this in context,” Khan added, explaining that “of the thousands of transactions proposed each year, the FTC and Department of Justice jointly investigate maybe 2% or 3%.”
The chairman was asked if he ever worried that the power of the FTC and its chairman could “basically destabilize the entire economy.”
“Of course we should be concerned,” Khan said, “but we should also be concerned about the destabilizing impact of companies believing they're not above the law and therefore acting recklessly and taking big risks.” collapse the economyThis also leads to destabilization, as only minor punishments are available.”
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The FTC Facing lawsuits The agency has been accused of overstepping its authority and could ultimately result in the courts clamping down on its powers, Staal said.
She asked Chairman Khan if he was concerned about such an outcome, to which he replied, “I think one of the challenges that agencies could face is that they end up curtailing their own power and authority by not actually using the authority that Congress has given them.”
Stahl asked Khan if he planned to stay on in his position as head of the FTC. Vice President Kamala Harris Khan's chances of winning the election are high, given that some of his biggest donors have publicly called for him to step down.
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“My focus is not to listen to what CEOs are saying on TV. In this job, it's important to stay focused and block out the noise,” Khan said. “There's a ton of work to do and I'm honored to have been given this role and would be honored if I get the opportunity to continue doing this work.”
