FTC Chairman Khan accused of ‘abuse of power’ in new US House investigation

WASHINGTON (Reuters) – House Oversight Committee Chairman James Comer on Thursday opened an investigation into Federal Trade Commission Chairman Lina Khan’s handling of the agency, citing complaints of abuse of power.

Khan angered companies and trade groups like the Chamber of Commerce by pushing the FTC, which enforces antitrust and deceptive marketing laws, to be more aggressive in investigating and enforcing the law.

In a letter to Khan and agency officials dated Thursday, Comer cited complaints from former commissioner Christine Wilson, a Republican.

“We are concerned that the developments at the Commission listed by Commissioner Wilson and others will undermine consumer and market confidence in the Commission’s ability to carry out its functions effectively and with integrity,” Comer wrote in the letter. .

Comer’s letter cited Wilson’s concern about a transaction by Meta Platforms. She had accused Khan of abuse of power by voting to challenge Meta’s acquisition of virtual reality content maker Within. Wilson argued that Khan had said before coming to the FTC that Meta should be barred from making any additional acquisitions, and that this meant Khan should be recused from FTC deliberations regarding the deal.

The FTC lost a court battle to stop this transaction and the deal was completed.

“Under Khan’s chairmanship, the FTC takes pride in defending American consumers from harm and ensuring fair competition in the economy. We look forward to working with Congress to dispel former Commissioner Wilson’s imaginative allegations. “FTC spokesman Douglas Farrar said in an email.

The committee requested documents related to the investigation, including unredacted documents on whether Khan should recuse himself from discussions about Meta’s plan to buy Within as well as discussions about the use of the delay to deter or prevent corporate mergers.

(Reporting by Diane Bartz; Editing by Chizu Nomiyama)

Leave a Comment