META - House Committee starts probe into FTC Chair Lina Khan

2023-06-01 12:11:01 ET

The House Oversight Committee requested an inquiry into Federal Trade Commission Chair Lina Khan, asking for documents related to her charge of the regulator.

The probe comes after former Commissioner Christine S. Wilson, the only Republican at the agency, resigned from the FTC in late March, at least partly blaming Khan's leadership and policies for her decision to step down.

"Commissioner Wilson declared her intent to resign over deep concerns that the Commission, under current Chair Lina M. Khan’s leadership, is abusing its power and disregarding the rule of law, due process, and federal ethics laws," House Oversight Committee Chair James Comer wrote in the letter to Khan and the two other FTC commissioners on Thursday, according to a Bloomberg report.

The review comes as the Biden administration, specifically under Khan, has taken a tough stance on antitrust matters, and is especially focused on big tech like Amazon ( AMZN ) and Meta ( META ), and is challenging Microsoft's ( MSFT ) planned $69 billion purchase of Activision ( ATVI ). Investors and others have argued that the FTC may have overstepped its authority as far as deals go, most recently with the agency's decision to sue to block Amgen's ( AMGN ) planned purchase of Horizon Therapeutics ( HZNP ) last month.

"We seek documents and information to shed light on Commissioner Wilson’s allegations and determine the extent to which the Commission has deviated from its mission to protect America’s consumers," Comer wrote in the letter.

“Under Chair Khan, the FTC is proud to be defending American consumers from harm and ensuring fair competition in the economy,”  FTC spokesman Douglas Farrar told Bloomberg. “We look forward to working with Congress to dispel former Commissioner Wilson’s imaginative allegations.”

The FTC didn't immediately respond to Seeking Alpha's email request for comment on the letter.

The House committee is seeking documents related to Khan's refusal to recuse herself from the review of Meta's ( META ) purchase of virtual reality start-up Within Unlimited, which the FTC dropped its challenge to in February after a federal judge ruled against the FTC .

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