Khan's approach has drawn criticism, but she remains undeterred, arguing that nurturing companies considered "national champions" is the wrong approach. Instead, she believes that startups and small businesses have historically been the source of significant breakthrough innovations. She cited the 1956 antitrust suit against AT&T's Bell Labs as an example of how antitrust legislation can boost competition and lead to innovation. Khan emphasized the importance of open, fair, competitive markets as the driver of innovation.
Key takeaways:
- FTC Chair Lina Khan is focusing on big tech companies and their AI goals, emphasizing the importance of targeting the main players driving illegal behaviors rather than smaller entities.
- Khan has been active in her role since being appointed by President Joe Biden in 2021, banning non-compete agreements for most employees and attempting to block major mergers and acquisitions, including Coach's $8.5 billion acquisition of Michael Kors.
- The FTC has recently turned its attention to AI, launching multiple lawsuits against big tech companies, including an investigation into Microsoft's $10 billion investment and ongoing relationship with OpenAI.
- Khan argues against coddling companies considered "national champions", stating that significant innovations often come from startups and small businesses, and that open, fair, competitive markets are the drivers of innovation.