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Federal Trade Commission Chairman Lina Khan he said in an interview broadcast on Sunday that companies are driving inflation and defended his agency’s role in preventing mergers and acquisitions.
Khan was interviewed by CBS News’ “60 Minutes” Lesley Stahl, who attended a town hall hosted by Khan and Rep. Alexandria Ocasio-Cortez, DN.Y., the chairman of the FTC said, “More and more times there are fewer and fewer companies to control more of the market and that means companies can start to rip you off, raise prices, steal from you.
“So there’s no doubt that the pandemic and the war have led to price increases. What’s more interesting is that since some of those supply chain pressures have decreased, prices have not decreased at the same time,” said Khan in an interview with Stahl. cause of inflation. “There’s a lot of discussion about what’s driving inflation, and we’ve actually seen some executives brag on earnings calls about how good inflation is for their bottom line.”
Khan also said that it is proposed mergers and acquisitions, that fall under the FTC’s regulatory oversight, must maintain a competitive marketplace even if they create efficiencies that lead to lower prices for consumers.
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FTC Chairman Lina Khan said her agency must preserve competition when reviewing proposed mergers and acquisitions. (Eugene Gologursky/Getty Images for Fast Company / Getty Images)
“Even if those programs work well, if the company is not competitively tested, it will have no incentive to go beyond those. benefits to the consumer because those buyers may not have anywhere else to go,” said Khan.
Stahl noted that the FTC’s supervision and investigation of a proposed merger can sometimes create a chilling effect that leads companies to abandon the deal.
“Sometimes, you know, companies decide to stop merging,” said Khan. Stahl asked if leaving the merger amid FTC scrutiny was a victory, Khan said, “Of course.”
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Khan, the Democratic nominee, has received some support from popular Republicans. (Chip Somodevilla/Getty Images)
Khan added that “it’s important to step back and keep this all in context” and explained, “Of all the thousands of proposed deals every year, the FTC and DOJ together investigate maybe 2% or 3%.”
The chairman was asked if he ever worried that the power of the FTC and its chairman could “cause instability in the entire economy.”
“Yes, we should be worried,” said Khan. “But we also have to be concerned about the impact of the collapse that may come from companies that believe they are above the law, and that they can be reckless, take great risks in ways that can crash the economyand then they get away with a slap on the wrist, and that creates a breakdown in fitness.”
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Some of Vice President Harris’ supporters have urged him to replace Khan as FTC chairman if he wins the election. (Slaven Vlasic/Getty Images for The New York Times / Getty Images)
The FTC i facing charges accusing it of overstepping its authority, Stahl noted that it could have the final result of the courts taking part in the agency’s powers.
He asked Khan what that result was about and the chairman replied, “I think one of the challenges that organizations face is that they limit their power and authority by not using the authority that Congress has given them.”
Stahl asked Khan about whether he would remain in his role as head of the FTC Vice President Kamala Harris he wins the election, as some of his biggest supporters have publicly called for Khan’s ouster.
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“What I’m focusing on is not listening to what the CEO says on television. It’s important in these jobs that I really focus and block out the loud noise,” said Khan. “There’s a lot of work to be done, and it’s a great honor to be in this role. And it would be an honor to have that opportunity to continue.”