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FTC Chair Lina Khan Speaks Against Potential ‘Sweetheart Deals’ for Tech Giants Under Trump Administration

By  |  January 7, 2025

Federal Trade Commission (FTC) Chair Lina Khan expressed concerns that the incoming Trump administration may offer favorable settlements to tech giants Amazon and Meta in the agency’s ongoing antitrust lawsuits. Speaking on CNBC’s “Squawk Box” on Tuesday, Khan underscored her hope that future FTC leaders will not allow the companies to escape liability through lenient agreements.

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    Per CNBC, Khan’s remarks come as Amazon’s executive chairman Jeff Bezos and Meta CEO Mark Zuckerberg have made substantial financial contributions to President-elect Trump’s inauguration fund and visits to Mar-a-Lago, Trump’s Florida residence.

    Khan, a staunch critic of Big Tech and an appointee of President Joe Biden, acknowledged that companies like Amazon and Meta have strong incentives to negotiate favorable settlements. “It is true that the FTC has been very successful, including in its ongoing litigations against Amazon and Facebook,” she said, according to CNBC.

    She added, “And so it’s only going to be natural that those companies are going to want to come in and see, can they get some type of sweetheart deal, right? Can they get some type of settlement that’s cheap, that settles for pennies on the dollar and … lets them escape from a liability finding in court?”

    Related: Big Tech Stocks Surge as Trump Names Ferguson to Lead FTC

    When pressed on whether she believes the next administration might offer such a deal, Khan expressed cautious optimism. “I hope it won’t,” she said. However, she acknowledged that future FTC leadership decisions are beyond her control. “I can’t predict what future people in my position are going to do,” she added.

    According to CNBC, Khan highlighted the significant timelines ahead for the FTC’s cases against the tech giants. The agency is scheduled to take Meta to trial this spring, while the case against Amazon is slated for fall 2026.

    The Biden administration’s FTC, under Khan’s leadership, has been aggressive in tackling monopolistic practices in the tech sector. However, Trump’s recent appointment of FTC Commissioner Andrew Ferguson to succeed Khan has raised questions about how the agency’s approach could shift under new leadership.

    As per CNBC’s report, Khan emphasized that the stakes in these cases are high and urged future regulators to resist pressure to cut deals that could undermine antitrust enforcement. “Of course they would want a sweetheart deal, and I hope future enforcers wouldn’t give them that,” she said.

    Source: CNBC