Khan Advocates for Market Competition Amid Inflation Crisis

In a recent interview on CBS News’ “60 Minutes,” Federal Trade Commission Chair Lina Khan addressed the rising inflation and attributed significant responsibility to corporate practices. According to Fox, Khan emphasized that an increasing concentration of market power among a few corporations is leading to price hikes that hurt consumers.

During her discussion with Lesley Stahl, who reported on a town hall meeting featuring Khan and Rep. Alexandria Ocasio-Cortez, D-N.Y., Khan stated, “Too often fewer and fewer companies are controlling more and more of the market.” She explained that this concentration allows companies to raise prices without fear of competition. “There’s no doubt that the pandemic and the war led prices to soar,” she noted, but pointed out that prices have not fallen in line with easing supply chain pressures. Per Fox, she observed that some corporate executives have even praised inflation during earnings calls, suggesting it benefits their profit margins.

Khan defended the FTC’s role in scrutinizing proposed mergers and acquisitions, asserting that such actions must ensure market competitiveness. “Even if those efficiencies arise, if the company’s not checked by competition, it won’t have an incentive to pass those benefits on to the consumer,” she remarked, highlighting the potential risks of unchecked corporate power.

Related: FTC’s Lina Khan Lauds Corporate Focus on Antitrust in Deal-Making

Stahl raised concerns about the chilling effect of the FTC’s investigations on merger proposals, to which Khan acknowledged that companies sometimes choose to abandon deals amid scrutiny. “That’s right,” she affirmed, reiterating the importance of maintaining a competitive marketplace.

When asked about the potential for the FTC’s actions to destabilize the economy, Khan expressed a balanced view. “Of course we have to worry,” she stated. However, she also warned that allowing companies to act recklessly without accountability poses its own risks, potentially leading to significant economic disruption. According to Fox, Khan concluded by emphasizing that the FTC and DOJ only investigate a small fraction of proposed deals—about 2% or 3%—illustrating the agency’s focused approach to maintaining market integrity.

Source: Fox