Federal Trade Commission Chair Lina Khan on Sunday defended her agency’s aggressive posture on mergers and acquisitions in a CBS News “60 Minutes” interview, responding to complaints from some Democratic donors who have criticized her opposition to some proposed deals. 

She made another very valid point, a discussion with Lesley Stahl about how corporate consolidation drives inflation. “Too often, fewer companies are controlling a larger share of the market,” she said, cautioning that this trend lets businesses take advantage of consumers by charging higher prices. 

Khan acknowledged that external factors – the pandemic and geopolitical conflicts – overwhelmed her efforts. But she said even though supply chain issues are easing, prices have yet to come down. “Some executives have even boasted about how inflation benefits their bottom line,” she said. 

About mergers and acquisitions that have been proposed, she said efficiencies promised by some deals can lower consumer prices, but market competitiveness has to be retained. “If competition isn’t present, companies won’t feel compelled to pass savings onto consumers who may have no alternatives,” she explained. 

Does the chilling effect of the FTC‘s investigations – companies get cold feet and abandon a proposed merger – amount to little more than a positive result? Khan agreed, pointing out context matters in such talks. “Of all the thousands of deals proposed each year, the FTC and DOJ collectively investigate only about 2% to 3%.” 

Khan acknowledged concerns about the power of the FTC and its implications for the economy. “We have to worry about that,” she said. “But we should also be worried about the destabilizing effects of companies operating above the law, taking reckless risks, and facing minimal consequences, which can also lead to economic instability.” 

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