Amazon Seeks Immunity From Big Tech Critic FTC Chair Lina Khan In Antitrust Investigations: WSJ

Amazon.com Inc AMZN has formally requested the Federal Trade Commission to alienate new Chairwoman Lina Khan from antitrust investigations of the company in light of her extensive past criticisms of the e-commerce retailer, the Wall Street Journal reported.

What Happened: President Joe Biden had recently appointed Khan as the FTC chair. Khan has been pivotal to the moment favoring sweeping changes to antitrust enforcement to take on the nation’s most influential firms.

The FTC has an open, wide-ranging antitrust investigation into Amazon’s business practices. It recently secured the right to review Amazon’s proposed acquisition of Hollywood studio, MGM.

The five-member FTC currently has a 3-2 Democratic majority. The FTC’s two Republicans hold views that diverge from Ms. Khan’s.

Khan gets the first opportunity to address the request for her disqualification. However, past FTC practices suggest the rest of the commissioners would likely have a say.

Under FTC rules, if the commission brings enforcement or rule-making proceeding involving Amazon and Khan chooses to participate, the other commissioners decide on Amazon’s motion.

Why It Matters: During Yale Law School days, Khan’s article argued antitrust law’s failure to restrain Amazon, which drew her to the limelight. She also worked for an antitrust group advocating enforcement action against Amazon and warned against the company’s growth.

Before her FTC nomination Khan worked as a key staffer on a congressional antitrust panel. The panel conducted a 16-month investigation of large online platforms and sought the involvement of lawmakers last year.

During Khan’s confirmation proceedings in April, Sen. Mike Lee of Utah, a leading Republican on antitrust issues, asked her whether she would have to recuse herself from Big Tech cases due to her work on the House online-platform investigation. Khan said she would consult with FTC ethics officials.

Price action: AMZN shares closed lower by 0.21% at $3,432.97 on Thursday.