In a recent development that has caught the attention of both the tech industry and political watchers, Lina Khan, the outgoing Chair of the Federal Trade Commission (FTC), has publicly advised President-elect Donald Trump against engaging in what she describes as “sweetheart deals” with big tech companies. This statement follows closely on the heels of an announcement by Meta, where the company revealed plans to shift from traditional fact-checking to a “community notes” system similar to that used by X, a move that has been interpreted by some as an attempt to curry favor with the incoming administration.
Khan’s remarks were made during an interview with CNBC’s Andrew Ross Sorkin, where she expressed concerns over the potential for large tech firms like Meta and Amazon to receive lenient treatment in ongoing antitrust cases. She highlighted the visits of top tech CEOs, including Mark Zuckerberg, Jeff Bezos, and Tim Cook, to Trump’s Mar-a-Lago resort, alongside significant financial contributions by Meta and Amazon to Trump’s inauguration fund. According to Khan, these actions are not mere social calls but strategic moves to influence policy and possibly secure favorable outcomes in their legal battles against the FTC.
The backdrop to Khan’s warning includes the FTC’s aggressive stance on antitrust enforcement against tech giants. The Commission is currently preparing for a significant trial against Meta in the spring of 2025 and has another scheduled against Amazon in the fall of 2026. These lawsuits are part of broader efforts by the FTC to curb what it perceives as monopolistic practices within the tech sector. Khan’s fear is that these companies might leverage their close ties with the incoming Trump administration to negotiate settlements that are, in her words, “cheap” and “settle for pennies on the dollar,” thus escaping a liability finding in court.
The shift by Meta to a community-driven fact-checking model was interpreted by Khan as an indication of how tech companies might attempt to align more closely with conservative viewpoints, which could be seen as a strategic move to gain favor with a Republican administration. This change in Meta’s policy was announced at a time when political influence on tech companies has become a hot topic, especially with allegations of bias towards certain political groups on social media platforms.
Khan’s call for vigilance is not just about maintaining the integrity of antitrust enforcement but also about ensuring that public policy isn’t swayed by corporate interests. She hopes that future enforcers within the FTC or other regulatory bodies will resist the temptation to offer these “sweetheart deals,” which could undermine years of legal preparation and public interest.
Posts on X (formerly Twitter) have reflected a mixed reaction to Khan’s statements. Some users express support for her stance, arguing that big tech has too much influence over policy-making. Others, particularly those with investments in tech giants like Meta and Amazon, seem to welcome the idea of more lenient deals, seeing it as potentially beneficial for stock performance and regulatory relief.
The situation underscores the complex interplay between tech regulation, political contributions, and corporate strategy. As Khan steps down from her role, the incoming administration’s approach to these antitrust cases will be closely watched. Whether Trump’s administration will heed Khan’s warning or if there will be a shift towards more conciliatory policies with big tech remains an unfolding narrative that could significantly impact both the tech industry’s landscape and consumer welfare.
